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What is Lmia: 17 Incredible Facts You Must Know

Before hiring, a Canadian employer may hire a foreign worker who will be required to obtain a Labour Market Impact Assessment. So what is LMIA? A favourable LMIA will demonstrate that a foreign favourable is required to complete the position. Additionally, it will prove that no Canadian citizen or legal resident is qualified for the position. A confirmation document is another name for a positive LMIA.

Employers must file for LMIAs if they are required to hire foreign workers. The employee can submit a work visa application after the employer receives the LMIA.

1. A Worker Requires the Following Documents to Apply for A Work Permit:

  •  A job offer letter,
  •  A contract,
  • A copy of the LMIA, and
  • The LMIA number.

1.1 In Determining the Applicant’s Qualities, Esdc Will Take Into Account:

  • Is the Position Available and Ready to Be Filled by A Canadian in The Area?
  • Has the employer put forth enough effort to find a Canadian worker to complete the position?
  • Will hiring a foreign worker help Canada retain or generate jobs?
  • Is the salary or wage being offered by the employer in line with the area average for the job in question?
  • To what extent do the working circumstances comply with Canadian labor laws?
  • Existing labour disputes with the employer or the sector in which the position is located?

A positive LMIA will be issued if ESDC determines that a particular region and sector are strong enough to support foreign labour.

Image by Werner Heiber from Pixabaycopyright 2017

2. Canadian Lmia Registration Procedure for 2023:

2.1 Detailed Data on The Lmia Procedure Is Provided Below:

I. if Required, the Company Requests a Labour Market Impact Assessment

The Canadian employer who employs a temporary foreign worker must apply for a favourable Labour Market Impact Assessment (LMIA) by ESDC before a Temporary Work Permit can be granted. As a result, if the Canadian employer proves that there are no Canadian citizens or permanent residents available to fill the position and hire temporary foreign workers, ESDC will award a positive LMIA.

ii. The employer offers a temporary position.

The foreign employee may accept a temporary employment offer from the Canadian employer after receiving LMIA. The employer must then submit a detailed job offer letter and a copy of the approved LMIA.

iii. An overseas worker requests a work permit:

The candidate can apply to ESDC for a Canada Temporary Work Permit with these papers. The foreign worker might also need to acquire a Certificat d’acceptation du Québec (CAQ) to work temporarily in Quebec if the employing Canadian company is located in that province. In Quebec, several occupations are “facilitated” and qualified for streamlined processing. Employers hiring foreign nationals applying for these jobs in Quebec are not required to make any local recruitment efforts as part of their applications.

iv. An alien employee receives a work permit:

When a foreign worker enters Canada, a Canada Border Services Agency (CBSA) agent will award them with a temporary work permit. When an employer gets a negative LMIA, it typically means that Canadian citizens should be given preference over foreign nationals in the hiring process. LMIA approval is typically required before hiring a foreign worker, but in some circumstances, companies may be exempt from this requirement.

Note that depending on whether the targeted employee is categorized as “high-wage” or “low-wage,” the Labour Market Impact Assessment (LMIA application) procedure, formerly known as a Labour Market Opinion (LMO), is different.

Low-wage temporary foreign employees are paid less than the provincial or territorial median wage; high-wage workers are paid at or above the provincial or territorial median wage. Certain specific provisions apply depending on whether a potential employee is categorized as high-wage or low-wage.

Before hiring foreign workers, all Canadian employers seeking foreign workers are required to show that they first looked for qualified Canadian citizens or permanent residents to complete open positions. After an individual starts working in Canada, employers may be checked for compliance with legal requirements.

3. Who can register for LMIA as an employer?

An employer must submit an LMIA application if they fulfil the criteria listed below:

  • Runs a lawful and profitable company.
  • Offers the broader public products or services.
  • Possesses the resources necessary to pay an overseas employee’s salary.
  • Can show that a foreign worker is actually required to fill a particular job.
  • Has not conducted any staff layoffs in the 12 months prior to the LMIA application.

Please be aware that the employer must file an LMIA application and obtain the government of Canada’s approval before hiring a foreign worker.

4. LMIA application specifications:

Only a few circumstances allow Canadian immigration authorities to grant work permits without first meeting the requirements of the LMIA, as described below:

  • NAFTA, a North American Free Trade Agreement, and other foreign agreements;
  • Due to the substantial benefits to Canadians’ economies, societies, or cultures that the job activity will have;
  • Canada, its provinces/territories, and other nations have reciprocal arrangements in place, such as youth and teacher exchange programs;
  • So that co-op placements, a type of academic requirement familiar to international students studying in Canada, can be fulfilled;
  • To make it possible for certain study permit and work permit holders in Canada’s wives and common-law partners to work there;
  • Due to the work’s charitable or religious character;
  • Recognizing that some people in Canada must provide for themselves for reasons other than those listed above, like filing a refugee claim.

5. Ontario employers’ criteria for LMIA applications:

5.1 These LMIA criteria are applicable:

In all other circumstances, a stream will determine whether an employer is eligible for LMIA. A company must have been in operation for at least a year to be eligible for an LMIA for permanent residency.

i. For employers to be eligible for LMIA coverage for all other kinds of businesses, they must fulfil the following requirements:

  • Possesses a reliable company.
  • Provides the general population with goods or services.
  • Can cover a foreign employee’s salary.
  • Genuinely requires an overseas worker.
  • Has not fired any workers in the 12 months before the application.

6. LMIA 2023 Processing Time:

The length of time it takes to complete an LMIA (Labour Market Impact Assessment) in Canada may vary and be unpredictable in 2023, but the Canadian government is working to speed up the procedure and offer better service. According to Employment and Social Development Canada (ESDC), it may take several weeks to several months to complete an LMIA application. This is because ESDC carefully reviews every application, taking into account the credentials and experience of each foreign national or skilled worker being considered for employment by a Canadian company.

7. What Is the  LMIA application cost:

For each request for an LMIA application, employers looking to hire a temporary foreign worker in Canada must pay a processing fee of 1,000 CAD. Employers are also subject to an extra $100 luxury fee from Employment and Social Development Canada. Unless the employer is capable of showing that another language is probably needed for the position, only English and French can be found to be job requirements, both for LMIAs and for job vacancy advertisements.

Additionally, before requesting an LMIA, businesses must post all open positions across the Canadian labour market for at least four weeks. To accomplish this, employers must prove that they have employed at least two additional employment strategies in addition to placing an advertisement on the Canada Job Bank. Employers must concentrate their advertising efforts on underrepresented Canadian demographics, such as First Nations people or people with impairments.

For high-wage positions, employers must also send a transition plan to ESDC with the LMIA application. This transition strategy should show how the company plans to reduce its reliance on temporary foreign workers in certain low-wage occupations in the future.

Employers may show this by hiring Canadian apprentices or providing evidence of investment in talent training. As an alternative, employers can show how they are helping their highly qualified temporary foreign workers immigrate permanently to Canada. The employer will have to provide an update on the status of the transition plan they filed if they are selected for an inspection or if they wish to renew their LMIA application.

Employers must certify that they are aware of the prohibition against terminating or reducing the hours of Canadian employees who hold the same position(s) as the other temporary worker or foreign worker(s) employed by the business.

Image by mohamed_hassan from Pixabaycopyright 2023

8. How can I get an effective LMIA?

The hiring procedure must have a positive or neutral impact on the Canadian labour market, according to the Canadian government official who is evaluating the LMIA application. The foreign worker must receive a wage and benefits that are in line with federal and provincial standards, among other things, and it must be evident that no qualified Canadians were passed over in favour of the foreign worker.

9. High-Paying Employees

Employers must submit transition plans with their LMIA applications in order to hire high-wage workers, demonstrating that they are taking measures to gradually lessen their reliance on temporary foreign workers. Workers with high hourly wages make more than the regional or median hourly wage for a particular occupation.

The transition plans are made to make sure that companies that hire migrants are carrying out the program’s objectives. This means that, when qualified Canadians are not available, they are using the program as a last and limited option to temporarily address urgent labour needs, ensuring that Canadians are given the first chance at available employment.

10. Low-Wage Employees

Transition plans are not required to be submitted along with LMIA applications from employers looking to recruit and hire low-wage workers and no-wage workers. They have to stick to a distinct set of rules, though. The Canadian government has instituted a cap to restrict the number of low-wage temporary foreign employees that a company can hire in order to guarantee that Canadians are always given preference for open positions under the Temporary Foreign Worker Program (TFWP).

Additionally, completing LMIA applications for some low-wage jobs may be rejected. There is a 10% limit on the percentage of low-wage temporary foreign workers that can be employed by companies with 10 or more employees when they submit a new LMIA application.

10.1 Employers who pay a temporary foreign worker less than the provincial/territorial median hourly salary are required to:

  • Cover round-trip transportation costs; guarantee there is affordable housing;
  • Provide an employer-employee contract,
  •  Register the temporary foreign worker with the provincial/territorial workplace safety commission, and
  •  Pay for private health insurance until employees are qualified for provincial health coverage.

The TFWP utilizes the most recent findings from the Labour Force Survey as of April 30, 2015, to calculate the unemployment rates across Canada. The areas that qualify for employers to submit Labour Market Impact Assessments (LMIAs) for low-wage/lower-skilled jobs in the hospitality and food services sector and for low-wage occupations in the retail trade sector are determined by these rates. In economic regions with an unemployment rate of 6% or greater, LMIA applications for these sectors won’t be processed.

Image by mohamed_hassan from Pixabaycopyright 2018

11. Exemptions of the LMIA:

An LMIA exemption is a situation where a Canadian business is not required to obtain an LMIA to employ a temporary foreign worker. A catalogue of LMIA exemptions is kept up to date by ESDC and Immigration, Refugees and Citizenship Canada (IRCC) and is organized by immigration programs.

11.1 Occasionally, Canadian Immigration Authorities May Grant Work Permits in The Following Circumstances without Requiring an LMIA Application: By International Agreements Like the North American Free Trade Agreement (NAFTA);

  • As a result of the substantial economic, social, or cultural benefits to Canadians that the job activity will bring;
  • Canada, its provinces/territories, and other nations have reciprocal arrangements in place, such as youth and teacher exchange programs;
  • So that co-op placements, a type of academic requirement familiar to international students studying in Canada, can be fulfilled;
  • To allow the spouses/common-law partners of Work Permit and certain Study Permit holders in Canada to work in Canada;
  • Because the nature of the work is charitable or religious;

In recognition that certain persons in Canada for reasons other than the above-mentioned, such as the making of a refugee claim, need to support themselves.

12. LMIA’s legitimacy as an enterprise:

All companies submitting an application for the Temporary Foreign Worker Program (TFWP) must also submit a Labour Market Impact Assessment. This will demonstrate the legitimacy of their business and employment offers.

13. What paperwork is needed for LMIA?

You must send the following paperwork with your LMIA (Labour Market Impact Assessment) application:

  • Filled out and completed the LMIA application.
  • The foreign national’s name that the employer hopes to recruit
  • Schedule D – Employer’s offer of skilled trades employment.
  • Proof of the employer’s ability to conduct business.
  • Copies of advertisements and details on where, when, and how long the job was promoted are examples of documentation for recruitment efforts.

It’s important to note that employers are exempt from paying the processing charge if they are supporting a foreign national’s application for a permanent resident visa.

14. What is the LMIA exemption:

In order to hire a temporary foreign worker in Canada, a Canadian employer needs to obtain a favourable Labour Market Impact Assessment (LMIA). There are a few situations, though, where the LMIA may be disregarded.

14.1 The Most Typical Lmia-Exempt Sources Are Listed Below:

  • Internal Transfer.
  • Significant advantage.
  • Mutual work.
  • Religious and charitable servant.

The applicant is not automatically exempt from needing a work authorization just because they are exempt from getting an LMIA. To lawfully work in Canada, all streams on the LMIA exemption list need to apply for a work permit.

15. How Do I Obtain Lmia?

They must submit an application and pay a $1,000 fee under the Temporary Foreign Worker Program to Employment and Social Development Canada (ESDC) in order to receive an LMIA (Labour Market Impact Assessment).

The company you work for may be required to submit documentation of their recruitment efforts to fill the position with a Canadian citizen or permanent resident, as well as a strategy to eventually transition the position to a Canadian worker, as part of the process.

16. Do You Need to Acquire Work Permits for New Hires as A Canadian Employer?

Both Canadian employers and foreign workers can entrust Canadapt Consulting with handling every aspect of the Work Permit procedure. Please be aware that a Canada Temporary Work Permit is only available to foreign employees who intend to stay in the country for a specific amount of time.

A temporary work permit serves as a first move toward permanent residence in Canada. Foreign workers must go through the Canadian immigration procedure to be able to live and work permanently in Canada.

When a foreign worker enters Canada with a Temporary Work Permit, they may be eligible for permanent citizenship through the Canadian Experience Class (CEC), a Skilled Worker category, or one of the Provincial Nominee Programs.

17. Do You Need a Work Permit Because You Have an Employment Offer from Canada?

The majority of the time, people who have a legitimate employment offer from a Canadian employer must obtain a Temporary Work Permit in order to work there. The length of a Temporary Work Permit can range from a few days to a few years. Almost always, there are two steps in the application procedure for a work permit.

To begin with, the hiring of foreign workers requires government approval from the Canadian company. The employers hiring workers designated employees must file for and obtain a work permit after this permission has been given.

The work permit issued will only be valid for designated employment in Canada. To work in Canada again, a worker must first apply for a work permit if they locate alternative employment but do not yet have permanent resident status.

A work permit can be obtained in Canada through a variety of methods. There may be ways to speed up the procedure depending on one’s nationality, profession, and intended employment in Canada.

Checkout: How to Apply for Quebec Health Card:- 3 Simple Steps!



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