What is LMIA Work Permit a Labor Market Impact Assessment (LMIA) might be needed if you’re searching to employ an overseas worker. Companies hiring with the Temporary Foreign Worker Program may require first to acquire approval from the government to use international talent. On this page, you will learn about What is LMIA Work Permit, its processing time, requirements, the application process, eligibility, costs, possible exemptions, success rate, and much more.
The Canadian immigration system is among the most complicated on the planet. With respect to the immigration path, you will probably encounter various applications, assessments, as well as interviews through the Canadian immigration government bodies and relevant government offices.
What is LMIA Work Permit in Canada?
LMIA stands for Labour Market Impact Assessment. It’s a type of assessment the Canadian government ways to uses for some companies searching to employ worldwide talent. It analyzes whether a deal of employment to some foreign national has a negative impact on the domestic marketplace. If this kind of offer of employment won’t have an adverse impact, the business will probably be given an optimistic LMIA and then provide the job to some foreign national.
Not all employers who want to hire foreign workers need an LMIA. You will simply need to try to get an LMIA when the job that you’re offering for your worldwide worker falls inside the LMIA framework. Alternatively, if you’re not needed to try to get an LMIA, you are able to hire your foreign worker directly with the Global Talent Stream program, Intra-Company Transfer program, or perhaps Tech Immigration programs.
LMIA Application Process: Step by Step
Canadian employers must follow the following 6-step application process in order to receive an LMIA Work Permit in Canada.
- Step 1: Make sure that your company is eligible to apply for an LMIA;
- Step 2: Comply with LMIA requirements for advertising and salary;
- Step 3: Submit LMIA application form online;
- Step 4: Wait for Employment and Social Development Canada (ESDC) to evaluate the job offer and the employer’s LMIA application form;
- Step 5: Attend an interview with an ESDC officer; and
- Step 6: Receive a Confirmation Letter from ESDC if your application was successful.
After LMIA is Approved, What is the Next Step?
After LMIA qualifies, the next thing is for the worker. LMIA and also the delivery of the Confirmation Letter are just one part of an overseas worker’s effective employment in Canada. The staff member can also get to try to get a piece visa (if from the visa country) and acquire a peace permit in a Canadian border, and can need:
- A job offer letter
- A fully signed employment contract
- A copy of the LMIA
- The LMIA number
Employer Requirements for LMIA
LMIA requirements are extensive and could be difficult to meet. If you’re a Canadian employer that wishes to employ foreigners that don’t have the right to operate in Canada – you will have to get an LMIA approval. Here are the 3 most significant needs:
- The very first requirement of all employers would be to show evidence they have attempted to look for qualified domestic workers who’re Canadian citizens or permanent residents. You’ve got no choice but to employ foreign workers since you cannot find appropriate talent.
- The second requirement depends upon regardless of whether you intend to employ a high-wage or perhaps a low-wage worker. If you are considering having to pay your foreign worker over the province’s median wage, then they’ll be classed as high-wage for LMIA purposes. If they’re compensated underneath the median wage inside your province, they’ll be considered low-wage workers.
- The third requirement entails a check mark for compliance with rules and reporting around the Transition Plan’s progress. This requirement is just relevant to employers that happen to be employing foreign workers under LMIA.
Hiring High-Wage Workers: Requirements
If you are considering having a high-wage foreign worker, you have to present the Transition Plan together with your LMIA application. The Transition Plan outlines the employer’s measurable commitments to assist the foreign worker transition into the domestic workforce throughout their employment using the Canadian employer and/or show a decrease in reliance upon foreign talent.
That can be done by recruiting, retraining, and/or up-skilling workers who’re Canadian citizens or permanent residents. Employers may also show the way they are helping their high-skilled temporary foreign workers to get permanent residents in Canada.
Hiring Low-Wage Workers: Requirements
if you intend on having a low-wage foreign worker, then you’re not needed to submit the Transition Plan. However, what you can do to employ foreign workers is going to be susceptible to a cap the Government of Canada places to limit the amount of low-wage temporary foreign workers.
In case your company has 10 or even more employees, the allowable proportion of temporary foreign workers you can use is 20%. For applications that are posted between 30 April 2022 and 30 April 2023, employers hiring workers within the following sectors and sub-sectors are qualified for any cap limit of 30%:
- Construction (NAICS 23)
- Food Manufacturing (NAICS 311)
- Wood Product Manufacturing (NAICS 321)
- Furniture and Related Product Manufacturing (NAICS 337)
- Hospitals (NAICS 622)
- Nursing and Residential Care Facilities (NAICS 623)
- Accommodation and Food Services (NAICS 72)
You have to cover the expense of transportation to Canada at the outset of the job period and go back to the house country of the temporary foreign worker. You need to ensure appropriate and cost-effective housing for the worker.
LMIA Eligibility
Upon finding the LMIA application, Employment and Social Development Canada (ESDC) will consider various factors to determine if the Canadian employer is qualified to train on a foreign worker.
ESDC will assess the following factors:
- Is there an evident labour shortage that cannot be filled with Canadian residents in the region?
- Has the Canadian employer made appropriate recruitment efforts to offer the position to a local Canadian employee?
- Whether working conditions in compliance with municipal, provincial, and federal regulations?
- Does the salary offer consist of a fair representation of the average salary for that position in the geographical area?
- Will the worker be able to perform the employment duties and share their expertise and knowledge with Canadians?
- Whether the employer is involved in an ongoing employment dispute?
- Does the intended salary reflect the average salary for the profession and the region?
- Will employing a foreign worker have a positive impact on job creation and retention in Canada?
ESDC will adjust its assessment method with respect to the kind of work and worker the business promises to hire. This adjustment to LMIA needs is essential, and also the employer must make reference to these to acquire a positive LMIA application outcome.
LMIA Processing Times in 2023
In 2023, the processing here we are at LMIA visa applications are between ten days and a pair of several weeks. ESDC bakes an effort to supply a relatively fast turnaround here we are at LMIA applications. Even though some applications might be processed really fast, others will require longer, which is usually determined by how busy the ESDC is.
It’s important for businesses that make an application for LMIAs to perfectly time their applications accordingly by placing a one or two several weeks buffer some time and getting a dependable legal team assisting using the documents. Inconsistencies or errors throughout the LMIA visa application can result in considerable delays and may considerably modify the time whenever your foreign worker can begin on your side.
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 – in case your foreign worker falls underneath the outline listing of jobs and also you intend on having to pay them greater than the median wage within the province, you might be qualified to have an expedited LMIA.
Top 10% Wage Earners – in case your foreign worker is compensated at or over the very best 10% of wages earned within the provinces, you may even be qualified to have an expedited LMIA.
Short Duration – in case your foreign worker is just useful for under 4 months and compensated over the median wage inside your province, you might be qualified to have an expedited LMIA.
How Much Does LMIA Cost in 2023?
LMIA application fee is $1,000 per worker. The business accounts for the applying charges and connected legal service costs. For instance, when the employer would like to employ 5 foreign employees, the business would need to file 5 separate LMIA applications. They’ll cost the business $5000 in application charges alone. It’s frequently even the situation the employer may also spend the money for visa application charges however, on some occasions; foreign workers will need to purchase them. This really is highly determined by the arrangement between your Canadian company and also the foreign worker.
LMIA Advertising Requirements
So that you can employ a temporary foreign worker, you have to reveal that you’ve made considerable efforts to recruit domestic workers but were unable look for a appropriate one. You have to advertise the positioning not less than 4 days around the Government of Canada’s Job Bank website and employ a minimum of two additional recruitment methods. Employers must advertise the positioning to underrepresented groups like Indigenous persons, vulnerable youth, newcomers, and persons with disabilities.
LMIA Exemption
Not every employer is needed to get LMIA approval to employ temporary foreign workers. The federal government of Canada has produced several LMIA exemption codes with the Worldwide Mobility Program that your organization may benefit.
Countries with Free Trade Agreements – if your foreign worker is a citizen of a country with which Canada has an FTA, then it is likely that you will be exempt from LMIA.
Global Talent Stream – You can use highly-skilled worldwide talent with the GTS, that will come under the LMIA exemption. Your worker may also receive expedited visa processing.
CUSMA (ex-NAFTA) Countries – if your foreign employee is from the United States or Mexico, they will likely be eligible for LMIA exemption.
CETA Countries – workers in certain occupations from the European Union may be exempt from needing LMIA approval to work in Canada.
Intra-Company Transfer Program – If your foreign company comes with an office in Canada, then with the ICT program, they are able to transfer their foreign worker from overseas offices to Canada without requiring an LMIA.
Facilitated LMIA for Quebec Employers – this method enables Quebec companies to bypass the advertising dependence on the LMIA process, which enables for faster processing.
Approval Rate for LMIA in 2023
Within our experience, the rate of success of LMIA applications is between 60% and 85%. Within our experience, applications which are well-prepared and thoroughly reviewed receive greater approval rates. Your application, however, will invariably rely on numerous factors such as ale the business to satisfy LMIA needs regarding the job advertisement, salary for that suggested position, along with the general eligibility from the employer to employ worldwide workers. Getting a skilled corporate immigration attorney counseling you using the LMIA applications can generally increase your odds 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:
Lack of genuine need for a foreign worker – If you didn’t demonstrate proof of the real requirement for an overseas worker to fill your open job, then you may be rejected. Make a substantial effort to recruit and hire Canadians first before searching for options abroad.
Non-compliance with Canadian labour laws and standards – If you’re regularly present in breach of work laws and regulations and rules, your LMIA application might be rejected. Past non-compliance could be shown by failing fair wages, supplying a secure working atmosphere, upholding the legal rights of employees etc.
Misrepresentation of information – Any misrepresentation inside your LMIA application can result in rejection. Statements that mislead ESDC officials regarding the true details from the employer’s information could be false job descriptions, fake salaries, or false recruitment efforts. Something that could undermine the integrity from the LMIA process will probably result in rejection.
Why Does Canada Use LMIA?
Canada is an extremely welcoming country for immigrants and foreign workers. The Temporary Foreign Worker Program is available to citizens from numerous countries to operate in Canada. However, Canada can also be protective of their citizens and permanent residents. Thus, the LMIA is within spot to place the economic interests from the domestic workforce first, and should there be roles that can’t be full of domestic talent, then companies can supplement by hiring foreign workers.
Consequently, the advertising needs, the transition plan, and compliance with wage needs are there to exhibit the federal government that employers are utilizing the Temporary Foreign Worker Program like a last measure to locate a 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:
- You are capable of paying your foreign workers
- Your business has a real need for foreign workers
- Your business hasn’t fired anyone in the past year
- You must have a legitimate business
- You must provide goods or services
Who Will Pay for LMIA in Canada?
Generally, the business covers the expense from the LMIA application and also the process. In some instances, the business may also cover the expense of securing a piece permit for that foreign worker.
LMIA to Support Permanent Residency Application
You’ll be able to use LMIA Confirmation Letter to aid an overseas worker’s application for permanent residency with Immigration Refugee and Citizenship Canada (IRCC).
Employers can employ a foreign worker and concurrently support their permanent resident visa application. The staff member may use the Confirmation Letter using the application to Federal Skilled Worker Program (FSWP), Federal Skilled Trades Program (FSTP), and Canadian Experience Class (CEC). It’s worth mentioning the above programs would qualify skilled workers for that Express Entry permanent residence program.
How Many Points for LMIA under the Express Entry program?
For a successful LMIA application, a foreign worker can receive 50 or 200 points for specific senior positions under the Comprehensive Ranking System (CRS). These points will be applicable to foreign worker’s FSW, FST, and CEC program applications.
How Can I Get LMIA From an Employer?
If you’re a foreign national and also have a deal of employment from the Canadian company, its not necessary to find an LMIA. The business will need to make an application for it and receive it.
However, workers that desire to gain permanent residency status in Canada could use the LMIA approval using their employer to aid their permanent residency application.
What About Owner-Operator LMIA?
Foreigners can make and fill their job vacancy under Owner-Operator LMIA. It calls for creating or obtaining a business or some of it in Canada. After this, the dog owner-operator will need to get yourself a visa. Under Owner-Operator LMIA, you should also follow the same needs as employers do underneath the LMIA. Make certain to discover the alterations towards the Owner-Operator LMIA program, which we recommend you read to know this path better.
Note: – Canserves does not provide any advice, assistance, or support to obtain LMIA approved Canadian job offer or to apply for Work Permit in Canada. The content and information shared below are just for the people who aspire to apply for this visa category.
Need Help With Your LMIA Application? Canserves Can Help
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