LMIA: Labour Market Impact Assessment

If you have a job offer in Canada and want to get a work permit, the LMIA (Labour Market Impact Assessment) route may be the way to proceed. However, foreign workers and Canadian employers alike should know that the LMIA process is far from straightforward.

Canada’s LMIA process serves as proof that no Canadian citizen or permanent resident is ready, willing, and able to fill a specific position in Canada, and so the employer is allowed to hire a foreign worker. In order to obtain an LMIA, employers must advertise the position for at least four weeks and potentially interview candidates who are Canadian citizens or permanent residents.

Only then, and only if the business can prove that those interviewees did not fulfil the job description, may the business be given the green light to hire a foreign worker. The worker must then apply for a Canadian work permit, supported by the LMIA, before beginning work in Canada.

LMIA applications are detailed and require lots of documentation and statistical tabulation. Examples include a numerical breakdown of the number of Canadian applicants for the position, the number of offers of employment made, and the number of unqualified applicants. Employers must provide a written description of why each un-hired Canadian was not qualified for the job. Not all work permit types require a LMIA to be issued; work permit streams that are LMIA-exempt come under the International Mobility Program.

The Temporary Foreign Worker Program

The department of Employment and Social Development Canada (ESDC) oversees Canada’s LMIA process. In their analysis, ESDC will consider the following elements of the job offer:

  1. Is the salary offered to the foreign worker consistent with the average for the occupation in the area the position is located?
  2. Are the working conditions consistent with labour laws and/or collective bargaining agreements?
  3. Is there a labour shortage for that occupation in the area the position is located?
  4. Is there an ongoing labour dispute in the company and/or industry?
  5. Has the Canadian employer undertaken recruitment efforts in order to find a Canadian to fill the position?
  6. Will the foreign worker be able to transfer unique skills or expertise to Canadians?
  7. Will hiring the foreign worker help to create or retain jobs for Canadians?
  8. Will the foreign worker be the employee of the Canadian employer, whereby the foreign worker is expected to work on a full-time basis at a pre-determined wage?
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