Get LMIA in 2024: Labour Market Impact Assessment [For Employers]

If you intend to hire a foreign worker, it’s possible that you’ll need to go through a Labour Market Impact Assessment (LMIA) process. Employers participating in the Temporary Foreign Worker Program might be obliged to secure government approval for hiring international employees. This page is designed to provide you with information about LMIA, including details on lmia processing times, prerequisites, lmia application procedure, lmia eligibility criteria, associated expenses, potential exemptions, success rates, and much more.

The Canadian immigration system is often regarded as one of the most intricate in the world. Depending on your chosen immigration route, you are likely to come across a variety of applications, evaluations, and possibly even interviews conducted by Canadian immigration authorities and the relevant government agencies.

What is Labour Market Impact Assessment (LMIA) in Canada?

LMIA stands for Labour Market Impact Assessment. This is a type of evaluation employed by the Canadian government for certain businesses seeking to employ foreign talent. Its purpose is to assess whether offering a job to a foreign national would adversely affect the domestic job market. If such a job offer is not expected to have a detrimental impact, the employer is likely to receive a positive LMIA, enabling them to extend the job opportunity to the foreign national.

Not all employers seeking to employ foreign workers are obligated to obtain an LMIA. The necessity for an LMIA application arises only when the job being offered to the international employee fits within the LMIA framework. However, if an LMIA is not required, you have the option to hire your foreign worker directly through programs such as the Global Talent Stream, Intra-Company Transfer program, or the Tech Immigration programs.

LMIA Application Process: Step by Step

Labour Market Impact Assessment

Canadian employers must follow the following 6-step application process to receive an LMIA

After LMIA is Approved, What is the Next Step?

Once the LMIA has been approved, the subsequent steps are in the hands of the employee. It’s important to note that LMIA approval and receiving the Confirmation Letter constitute just one aspect of a foreign worker’s successful employment in Canada. The worker will also need to apply for a work visa (if they are from a visa-required country) and obtain a work permit at a Canadian border. Additionally, they will be required to have:

Employer Requirements for LMIA

LMIA requirements are extensive and can be hard to meet. If you are a Canadian employer looking to hire foreign nationals who do not possess the right to work in Canada, you will be required to obtain LMIA approval. Here are the three most crucial prerequisites:

Hiring High-Wage Workers: Requirements

If you plan on employing a high-wage LMIA foreign worker, it is essential to include a Transition Plan along with your LMIA application For Canada. This plan delineates the employer’s tangible commitments to facilitate the foreign employee’s integration into the domestic workforce while working for the Canadian employer. It may also demonstrate a reduction in dependence on foreign talent.

This can be achieved by recruiting, retraining, and/or upskilling workers who are Canadian citizens or permanent residents. Employers can also demonstrate how they are assisting their highly skilled temporary foreign workers in their journey to become permanent residents in Canada.

Median Hourly Wages by Province

Hiring Low-Wage Workers: Requirements

If you plan on employing a low-wage foreign worker, you are not required to submit the Transition Plan. However, your ability to hire foreign workers will be subject to a cap that the Government of Canada places to limit the number of low-wage temporary foreign workers.

If your company employs 10 or more individuals, the maximum percentage of temporary foreign workers you can hire is 20%. However, for applications submitted between April 30, 2022, and April 30, 2023, employers hiring workers in specific sectors and sub-sectors are eligible for a higher cap limit of 30%.

As an employer, you are responsible for covering the transportation costs for your temporary foreign worker to travel to Canada at the start of their work period and for their return to their home country when their employment concludes. Additionally, it’s your obligation to provide your worker with appropriate and reasonably priced housing.

LMIA Eligibility

Upon receiving the LMIA application, ESDC will consider various factors to decide whether the Canadian employer can employ a foreign worker.

ESDC will assess the following factors:

ESDC will adapt its assessment approach based on the nature of the work and the type of worker the employer intends to hire. These adjustments to LMIA requirements are of significant importance, and employers must consult them to increase the likelihood of a successful LMIA application.

LMIA Processing Times in 2023

In 2023, the processing time for LMIA work permit applications is between 10 days and 2 months. ESDC strives to ensure a reasonably swift turnaround for LMIA applications. However, it’s important to note that while some applications may be processed quickly, others may take longer, with the timeline often contingent on the workload and busyness of ESDC.

For companies applying for LMIAs, it is crucial to strategically plan their applications by allowing for a buffer time of 1 to 2 months and enlisting the support of a dependable legal team to assist with the documentation. Inconsistencies or errors during the LMIA work permit application process Canada can lead to considerable delays and significantly affect the time your foreign employee can start working for you.

The Processing Time May Be Longer If The Application is Not Complete, Lacks Evidence, Contains Errors Or Other Inconsistencies

Expedited LMIA Application

It is possible to receive a 10-business day processing service for workers in certain occupations:

Skilled Trades/Professions in High Demand – if your foreign worker falls under the outline list of occupations and you plan on paying them more than the median wage in the province, then you may be eligible for an expedited LMIA.

Top 10% Wage Earners – if your foreign worker is paid at or above the top 10% of wages earned in the provinces, you may also be eligible for an expedited LMIA.

Short Duration – if your foreign worker is only employed for under 120 days and paid above the median wage in your province, then you may be eligible for an expedited LMIA.

How Much Does LMIA Cost in 2023?

LMIA application fee is $1,000 per employee. The employer bears the responsibility for both the application fees and the related legal service expenses. To illustrate, if an employer intends to hire 5 foreign employees, they will need to submit 5 separate LMIA applications, incurring application fees totaling $5000 for the employer. Additionally, it’s common for the employer to cover the work permit application fees, but there are instances where foreign workers may be responsible for these fees. This arrangement typically hinges on the agreement between the Canadian company and the foreign worker.

LMIA Advertising Requirements

To hire a temporary foreign worker, you must demonstrate that you’ve actively attempted to recruit domestic workers but haven’t been able to find a suitable candidate. This entails advertising the position on the Government of Canada’s Job Bank website for a minimum of 4 weeks and utilizing at least two other recruitment methods. Furthermore, employers are required to promote the job opportunity to underrepresented groups, including Indigenous individuals, vulnerable youth, newcomers, and persons with disabilities.

Labour Market Impact Assessment Exemption

Not all employers are mandated to obtain LMIA approval when hiring temporary foreign workers. The Canadian government has established various LMIA exemption codes within the International Mobility Program, which can be advantageous for your company.

Approval Rate for LMIA in 2023

Based on our experience, the success rate of LMIA applications typically falls within the range of 60% to 85%. We’ve found that well-prepared and meticulously reviewed applications tend to have higher approval rates.

However, it’s important to note that the approval outcome is influenced by various factors, including the employer’s ability to meet LMIA requirements concerning job advertisements, proposed position salary, and the general eligibility of the employer to hire international workers. Engaging an experienced corporate immigration lawyer to guide you through the LMIA application process can enhance your chances of approval.

LMIA Denial: 3 Top Reasons for LMIA Rejection

There are numerous reasons why LMIA applications are rejected. Below we have compiled a list of the top 3 reasons for denials:

  1. Lack of genuine need for a foreign worker. If you fail to provide evidence of a legitimate requirement for a foreign worker to fill your vacant position, your application could face rejection. It’s essential to demonstrate a substantial effort in recruiting and hiring Canadian candidates before exploring international options.
  2. Non-compliance with Canadian labour laws and standards. If your company is frequently found to be in violation of labor laws and regulations, your LMIA application may be subject to rejection. A track record of non-compliance can be evident through issues such as failing to provide fair wages, maintaining a safe working environment, upholding employee rights, and similar concerns.
  3. Misrepresentation of information. Misrepresentation in your LMIA application can result in rejection. This includes any statements that mislead ESDC officers about the accuracy of the employer’s information, such as false job descriptions, fabricated salaries, or deceptive recruitment efforts. Any actions that compromise the integrity of the LMIA process are likely to lead to rejection.

Why Does Canada Use LMIA?

Canada is known for its openness to immigrants and foreign workers. The Temporary Foreign Worker Program extends its opportunities to citizens from various countries to work in Canada. However, Canada also prioritizes the welfare of its citizens and permanent residents. Therefore, the Labour Market Impact Assessment serves to safeguard the economic interests of the domestic workforce. It allows companies to hire foreign workers only when they cannot find suitable candidates from within the domestic talent pool.

Consequently, the advertising prerequisites, the transition plan, and adherence to wage standards are all designed to demonstrate to the government that employers are employing the Temporary Foreign Worker Program as a final option when seeking an appropriate workforce.

LMIA Frequently Asked Questions

Below you will find answers to the most common questions about labour market impact assessment.

Who is Eligible for LMIA?

Almost all Canadian employers can be eligible for an LMIA; however, here are some of the requirements:

Your requirements may differ depending on the nature of your business and your long-term intentions for employing international talent.

Who Will Pay for LMIA in Canada?

In most instances, the employer will be responsible for covering the expenses related to the Labour Market Impact Assessment application and the entire process. Additionally, in some cases, the employer may also bear the costs associated with obtaining a work permit for the foreign worker.

How Many Points for LMIA under the Express Entry program?

A successful LMIA application can earn a foreign worker between 50 and 200 points for specific senior positions under the Comprehensive Ranking System (CRS). These points can be utilized in foreign workers’ applications for programs such as FSW, FST, and CEC.

Work permits that necessitate an LMIA are typically valid for a maximum of 18 months. However, the specific duration of the work permit will be influenced by factors such as the type of work permit, job attributes, and the employment location. Depending on individual circumstances, the Canadian government can issue work permits with varying durations, which may be longer or shorter.

To obtain an Labour Market Impact Assessment work permit, the Canadian employer must initially submit an LMIA application with the ESDC. Upon approval of the application, the foreign worker can then commence the work permit application process. The foreign worker must fulfill all the prerequisites for a work permit to legally work in Canada. It’s important to note that LMIA approval alone is insufficient to bring a foreign worker to Canada.

The LMIA process comes with a cost. When a company applies for an LMIA, they are typically required to pay $1000 per application. However, there are exceptions in which employers may pay a lower fee. The fee structure often depends on the salary associated with the position and the specific immigration program being pursued.

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