What is a Labour Market Impact Assessment?

A labour market impact assessment (LMIA), is a document that an employer in Canada may need to obtain from Employment and Social Development Canada (ESDC) before being permitted to hire a foreign worker. A positive LMIA shows that there is a need for a foreign worker to fill the position the employer is seeking. It also demonstrates that there is no Canadian worker or permanent resident available to do the job, ensuring the job cannot be filled by workers from the Canadian labour market.

Who needs an LMIA?

Generally, employers are required to apply for a labour market impact assessment before they can hire a foreign national. Canadian employers are typically the ones required to apply for an LMIA when they wish to hire foreign workers. However, if the foreign national falls under an exemption the employer will not need an LMIA.

How do I apply for an LMIA? 

Determine the stream:

• If you need to apply for an LMIA, the wage being offered for the position will determine if you need to apply under the high-wage stream, or the low-wage stream. Other streams, for example, Global Talent Steam have their own wage requirements

• The median wage of your respective province is used as a benchmark to determine the appropriate stream. You must also take into consideration the prevailing wage for the province that you apply from.

• If the wage you will pay the foreign national falls under your required wage but still meets the wage requirement, your application will be considered a low wage.

• Alternatively, if the wage you will pay the foreign national is above the province’s median wage, the application will be considered high-wage.

Demonstrate business legitimacy:

• All job offers made by employers are assessed by the ESDC to ensure that both the business and the job offer are genuine and legitimate

• You must provide documents that prove you are providing a good or service. This includes:

• A valid municipal/provincial/territorial business license

• Your most recent T4 Summary of remuneration paid

• Your most recent PD7A Statement of account for the current source

• An attestation confirming that you’re engaged in a legal business that provides a good or service in Canada where an employee could work and a description of the main business activity

• As a Canadian employer planning to hire foreign workers, you must also demonstrate the legitimacy of your business through these documents.

• You must also provide documents to demonstrate that you are able to fulfill the terms of the job offer. This includes, but is not limited to:

• Your most recent T2 Schedule 100 Balance sheet information and T2 Schedule 125 Income statement information

• Your most recent T2125 Statement of business or professional activities

• Your most recent T4 or payroll records for a minimum of 6 weeks

Make efforts to recruit and advertise for the position:

• As part of the temporary foreign worker program, you must conduct recruitment efforts to hire Canadian and permanent residents, before offering the job to the foreign worker. These efforts are crucial for Canadian employers in the process of hiring foreign workers, ensuring that all local avenues for recruitment have been exhausted.

• For a low-wage LMIA, you must advertise on Job Bank Canada, and at least two additional methods of recruitment that are consistent with the occupation and use methods that target different underrepresented groups

• For a high-wage LMIA, you must also advertise on Job Bank Canada, and at least two additional methods of recruitment that are consistent with the occupation and use methods that are national in scope and can be easily accessed by residents of any province.

• The ultimate objective of the LMIA for Canadian employers is to hire foreign workers when no suitable Canadian or permanent resident is available for the job.

• You are required to have job advertisements running for a minimum of four consecutive weeks within the 3 months prior to submitting an LMIA application.

It is important to refer to the program requirements and guidelines provided on the IRCC website for each specific LMIA stream. The requirements of an LMIA are subject to change. An incomplete or incorrect LMIA can result in a returned application.

Does an LMIA help with permanent residency?

LMIAs are a great tool to help temporary foreign workers in Canada work towards permanent residency. The Government of Canada believes that foreign workers can help employers meet their labour needs when Canadians and permanent residents are not available. Therefore, if an employer wants to hire a skilled foreign worker, they can simultaneously support their permanent resident visa application with a valid job offer under the Express Entry system. If you are submitting an LMIA in support of a foreign national’s permanent residency application, you are exempt from submitting a transition plan or cap calculation with your application. 

What is a Global Talent Stream LMIA

The Global Talent Stream facilitates the recruitment of specialized temporary foreign workers (TFWs) crucial for scaling and growth. Additionally, it caters to businesses aiming to fill in-demand, highly skilled positions listed on the Global Talent Occupations List. Another avenue for Canadian employers to bring in highly skilled workers without needing a traditional LMIA is through the International Mobility Program, which is designed to attract individuals for knowledge transfer and socio-economic exchanges, exempting employers from the LMIA process.

GTS Program Requirements and Application Process

Employers venturing into the Global Talent Stream must adhere to specific program requirements. Central to this is the development of a Labor Market Benefits Plan (LMBP), showcasing the employer's commitment to activities benefiting the Canadian labor market. Regular progress reviews ensure ongoing compliance and alignment with commitments.

A key advantage of the GTS is the expedited processing timeline, with a service standard of 10 business days for LMIA processing, supported by personalized assistance from TFWP officers. Additionally, approved applicants benefit from accelerated work permit processing by Immigration, Refugees, and Citizenship Canada (IRCC), further enhancing operational efficiency.

Why Hire AKM Law for Hiring Foreign Workers through Your LMIA Application

By choosing AKM Law to assist with your LMIA application, you are securing the expertise of a professional team of lawyers, dedicated to navigating the complexities of Canadian immigration. With years of experience in immigration law, AKM Law possesses the knowledge and skills necessary to guide you through the LMIA process with confidence. Our firm prides itself on keeping up-to-date with the ever-changing requirements and regulations surrounding LMIA applications, ensuring that your case is handled with precision and efficiency. Our commitment to professionalism means that we approach each case with meticulous attention to detail, providing personalized guidance tailored to your specific needs. By entrusting your LMIA application with our lawyers, we assure you that you are receiving top-tier legal representation that prioritizes your success and peace of mind. Additionally, our firm is adept at handling LMIA-exempt work permits, offering comprehensive support for both standard and LMIA-exempt processes.