Labor Market Impact Assessment
As a Canadian employer, if you want to hire a temporary foreign worker, then you may need to obtain a Labour Market Impact Assessment (LMIA).
A LMIA justifies the need to hire a foreign worker by assessing the labor and skill shortages in the domestic market.
A LMIA confirms that no Canadian citizen or permanent resident is available for that occupation.
There are a few exceptions to LMIA requirements for specific work permits.
What is the Process of Applying for a Labour Market Impact Assessment (LMIA)?
The process of applying for an LMIA differs for high-wage foreign workers and low-wage foreign workers
Temporary foreign workers being paid under the median wage according to the province or territory that they are residing in are considered low-wage workers.
If the foreign workers are being paid at or above that province or territory’s median wage, then they would be considered high-wage workers.
Employers submitting LMIA applications for low-wage workers must meet additional requirements:
- Meet the capacity limit on hiring temporary foreign workers
- Provide adequate transportation to and from Canada
- Provide adequate housing during the period of employment
There is also a process to apply for a LMIA to support a temporary foreign worker for permanent residency. This is known as a Dual Intent LMIA and temporary foreign workers can benefit from additional job offer points to be used for their Express Entry permanent residence application. This can be done for applicants both in and outside the country.
What are the Requirements for the Labour Market Impact Assessment (LMIA)?
As an employer, you will be required to comply with the conditions imposed by Employment and Social Development Canada (ESDC). You will be required to:
- Meet all eligibility requirements of the TFWP for the LMIA application
- Inform ESDC of any changes related to a positive LMIA or to the employment of the temporary foreign worker
- Review your activities to ensure compliance with the TFWP
- In addition to above you may be required to go through the Employer Compliance review, which includes inspection and ministerial review