LMIA Based Work Permit

CIES | 12-August-2019

Labor Market Impact Assessment (LMIA) – Definition.

There is requirement of LMIA (Labor Market Impact Assessment) formerly called a Labor Market Opinion (LMO) for hiring a temporary foreign worker for almost all Canadian work permits.

LMIA is a labor market impact assessment. This labor market verification process through which Employment and Social Development Canada (ESDC) assesses an offer of employment to make sure that when a foreign worker is employed, it will not have a negative impact on the Canadian labor market. The employer is required to provide the variety of information about the position for which they want to hire. It includes the number of Canadians who were interviewed, number of Canadians who applied for the position and detailed explanations for why the Canadian workers considered were not hired.

ESDC will consider the following elements in analyzing the offer of employment:

1.      Is the salary the foreign worker would get consistent with the average for the occupation in the area for which the hiring is being undertaken?

2.      Are the working conditions consistent with labor laws and/or collective bargaining agreements?

3.      Is there a labor shortage for that occupation in the area for which the hiring is being undertaken?

4.      Is there an ongoing labor dispute in the company and/or industry?

5.      Are recruitment efforts made by the Canadian employer in order to find a Canadian to fill the position?

6.      Will the foreign worker be able to add to the unique skills or expertise to Canadians?

7.      Will hiring the foreign worker help to retain or create 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?

In general terms, for jobs in Canada’s major cities, the more specialized the position and the higher the salary offered to the individual, the higher the probability of obtaining a positive LMIA will be. It is also applicable in less populated cities and regions but generally obtaining a LMIA may be easier.

Work Permits Based On LMIA:

Firstly the applicant is required to submit an application to ESDC for a Labor Market Impact Assessment, followed by a second application to Citizenship and Immigration Canada (CIC) for the actual work permit. After the LMIIA is issued by ESDC after considering numerous protective labor market factors, the Canadian employer is authorized to hire a foreign worker.

In June 2014, it was declared that work permits for foreign workers who need a LMIA will only be permitted for a period of 1 year for all low-wage occupations.

The Time Taken To Obtain A Labor Market Impact Assessment?

ESDC offices are responsible for PR Processing LMIA application. For Specific LMIA applications, ESDC has committed to a 10 business day service standard. This type of processing is only for applications pertaining to jobs in high demand (such as skilled trades), jobs offering wages in the top 10% of wages earned by Canadians in that province or territory, and for jobs with a short duration work period (less than 120 days). There are ESDC offices in every Canadian province.

Requirements for Employers Applying for an LMIA:

As of June 2014, a specific  processing fee of tied to each request for a labor market opinion is required to be paid by all employers wishing to hire a temporary foreign worker to Canada. There is also the requirement of a “specific privilege fee”. Unless until the employer can prove that another language, English and French must be the only languages that can be distinguished as job requirements both for LMIAs and for job vacancy advertisements

Before applying for an LMIA, employers must also advertise all job vacancies in the Canadian job market for at least four weeks before applying. The advertising efforts must be focused on groups of Canadians who are under-represented, such as Aboriginals or persons with disabilities.

They are required to prove that they have used at least two other recruitment methods in addition to having posted an advertisement on the Canadian Job Bank website.  

Employers are required to submit a transition plan to ESDC with their LMIA when they are applying for LMIA for high-wage positions. The focus should be to indicate how the company plans to reduce their reliance on temporary foreign workers. The employer can show it off by Proof of investment in skills training or hiring Canadian apprentices. If the employers apply to renew their LMIA or are chosen for an inspection, they are required to report on the progress of their transition plan. Proof that the employer is helping their high-skilled temporary foreign worker in becoming a Canadian permanent resident can also qualify as the transition plan.   

The employer has to make sure attest to their awareness that they are prohibited from laying off or cutting the hours of Canadian workers if they employ foreign workers.

If an employer’s LMIA application matches the following criteria, it will not be processed:

·         The occupation listed on the LMIA is a job in Accommodations, Food Service or Retail Sales.  Under the North American Industry Classification System (NAIC), these occupations are classified as NAIC type 72, 44, or 45.

·         In the National Occupation Classification, the occupation is categorized as Skill Level D

·         The economic region where the hiring is to be undertaken has an annual unemployment rate of over 6%.

Employers doing the hiring process for certain occupations, such as airlines requesting foreign pilots, may face additional requirements.  

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