Work

LMIA – Labour Market Impact Assessment

Employment and Social Development Canada (ESDC) issues a document called a Labour Market Impact Assessment (LMIA) that evaluates the effects of hiring a foreign person in Canada. An employer may employ a foreign national if the LMIA is positive, meaning that no Canadian citizen or permanent resident is available to fill the post. A negative LMIA suggests that a permanent resident or citizen of Canada should occupy the position.

An LMIA cannot be applied for by a foreign national. Instead, LMIAs are documents that a Canadian employer has to apply for. Employers who wish to hire foreign workers outside of Canada must obtain an LMIA under all streams of Canada’s Temporary Foreign Worker Program (TFWP), even though there are instances in which hiring foreign workers without a work permit or without an LMIA is possible. A positive LMIA is also necessary for several of Canada’s immigration processes leading to permanent residency, and it is a requirement for applicants to claim points towards a Canadian job offer.

Following the processing of an LMIA application, employers will receive a decision. The employer may proceed with recruiting a foreign national if they receive a positive LMIA. Unfortunately, the business is not permitted to hire a foreign national if a negative LMIA is granted.

The validity of positive LMIAs is six months from the date of issuance. The company has to let the foreign national know if their LMIA is positive so they can apply for a work visa or permanent residence. Employers may request to have their LMIA application handled in ten days under specific circumstances. An employer must be based outside of Quebec and fulfill one of the following criteria in order to be eligible for expedited processing:

• Highest wage positions: top 10% of wages earned by Canadians in the province/territory of the job
• Skilled Trades: paid at least the median provincial/territorial wage for the position.
• Short-Term positions: 120 days or less
• Express Entry: the LMIA is to assist an Express Entry candidate

Exemptions to LMIA Requirements

There are situations in which hiring a foreign worker might not need a business to get an LMIA. The International Mobility Program is in charge of handling most LMIA exemptions.