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LMIA

LMIA

Labour Market Impact Assessment (LMIA)

If your business is facing a labour shortage, or you are unable to find the talent your business needs, why not look outside of Canada? Your business may be eligible to access a pool of foreign workers to hire on a temporary basis when Canadian citizens and/or permanent residents are not available.

The Temporary foreign worker program or TFWP is a program of the Canadian Government to allow employers in Canada to hire foreign workers. The program is jointly administered by Employment and Social Development Canada (ESDC) and Immigration, Refugees and Citizenship Canada (IRCC). Canadian employers are required to obtain a document from Employment and Social Development Canada (ESDC)/Service Canada stating that they can hire the temporary worker. This is known as a Labour Market Impact Assessment (LMIA). Labour Market Impact Assessment (LMIA), formerly known as a Labour Market Opinion (LMO) is a document from Employment and Social Development Canada (ESDC) that gives the employer permission to hire a temporary foreign worker. It shows that there is a need for a foreign worker to fill the job and no Canadian worker is available to do the job.

The purpose of the LMIA is to make sure that foreign workers are not being chosen over Canadian citizens and/or permanent residents those are qualified for the job. Positive LMIA determines that hiring foreign nationals in the specified occupation and at the specified work location is likely to have a positive or neutral impact on the Canadian labour market.

The process

The process

10 +

Years Of Experience

10000 +

Successful Applications

Documents required for an LMIA application

LMIA application(s) can be different depending on the type of business/industry, business location, and the foreign worker they are looking to hire. Following is a generic checklist for reference:

  • The LMIA rules, regulations and requirements are subject to frequent changes. These changes deal with different categories of jobs, duration, exemptions etc. Continuous research, attention to detail and painstaking hard work is required to obtain a positive LMIA. We help in assessment of our client’s profile and advice them on their eligibility to get an LMIA.
  • We also assist our clients/employers with the advertisement posting.
  • We help Canadian employers for applying Labour Market Impact Assessment (LMIA) application and legally representing them before ESDC during the procedure.
  • Copy of advertisement and information to demonstrate where, when and for how long the position was advertised.
  • Business registration or legal Incorporation documents (if first LMIA application). This does not apply to employers of In-home Caregivers.
  • Provincial/municipal business license (where applicable and if first LMIA application). This does not apply to employers of In-home Caregivers.
  • Canada Revenue Agency (CRA) documents: T2 Schedule 100 Balance Sheet Information and T2 Schedule 125 Income Statement Information (for corporations). These are only required if this is the employer’s first LMIA application. This does not apply to film and entertainment or employers of In-home caregivers.
  • Provincial/territorial workplace safety and insurance (e.g. workers compensation board) clearance letter/certificate (if applicable).
  • Attestations (if required) from a lawyer or Chartered Professional Accountant (CPA) in good standing with a law society or respective professional body. Attestations from Chartered Accountants in Quebec are not authorized by the Ordre des comptables professionnels agréés du Québec.
  • Commercial lease agreement (where applicable). This does not apply to employers of In-home Caregivers.
  • Film and Entertainment: Copy of employment contract (except film and TV).
  • Provincial documentation requirements
    British Columbia:
    Employment Agency License (British Columbia’s Employment Standards Act) if applicable
    Alberta: Employment Agency Business Licence (Alberta’s Fair-Trading Act) if applicable.
    Manitoba: Certificate of Registration (Manitoba’s Worker Recruitment and Protection Act).
    Saskatchewan: Employer Registration Certificate (The Foreign Worker Recruitment and Immigration Services Act) (no documentation required; however, employers must be registered).
    Nova Scotia: Employer Registration Certificate (Labour Standards Code). 

LMIA application processing times

The processing times are averaged across all processing centres in Canada. Timelines represent the average time it takes to process an application from when it is received by Service Canada to when the decision is made on the application.

LMIA Stream
Processing Time
(in business days)
Global Talent Stream 13
Agricultural stream 12
Seasonal Agricultural Worker Program 5
Permanent residence stream 40
In-home caregivers 17
High-wage stream 51
Low-wage stream 49

Global Talent Stream and applications that qualify for expedited service have a service standard of 10-business days that is expected to be met 80% of the time. The service standard date starts on the business day after the application has been received.

LMIA FAQ’s

What is a Labour Market Impact Assessment or LMIA?

Labour Market Impact Assessment (LMIA), formerly known as a Labour Market Opinion (LMO) is a document issued from Employment and Social Development Canada (ESDC)/Service Canada that gives the employer permission to hire a temporary foreign worker. It shows that there is a need for a foreign worker to fill the job and no Canadian worker is available to do the job.

What is the cost of LMIA?

Government processing fee for LMIA application is $1000 CAD per position. However, there are exceptions where an employer/company is not required to pay this processing fee.

Exceptions
  • LMIA to support permanent residency application.
  • LMIA for primary agriculture stream and positions under the National Occupational Classification (NOC) codes 0821, 0822, 8252, 8255, 8431, 8432 and 8611.
  • LMIA to hire a foreign caregiver to provide home care for individuals requiring assistance with medical needs.

How many LMIA’s can an employer get?

It depends on several factors and situations. Employer can apply for many LMIA’s indeed they can demonstrate that there is a genuine need for their business.  For lower skilled positions, there is a CAP on the number of foreign workers that any one business can employ and there may be certain restrictions in place due to regional unemployment levels.

How difficult is it to get a positive LMIA?

The LMIA process serves as proof that no Canadian citizen and/or permanent resident is ready, willing, and able to fill a specific position in Canada. The process is difficult, and onus is on the employer/company to demonstrate that there is a genuine labour shortage. However, there are sectors where Canadian workers are not available to fill the labour shortage, and a foreign worker is the only option.

Can I get an LMIA for a part time position?

No! The job must be for a full-time (at least 30 hours/week).

What happens if foreign worker does not want to work or employer wants to terminate the employment?

If you decide after the foreign worker starts to work for your company that he/she is not a good fit, you can terminate their employment according to the provincial/federal labour laws and employment contract (if any). Make sure you notify Service Canada that foreign worker is no longer working with you. If you decide that you can no longer offer the position before the foreign worker starts to work for your business, you need to notify both the worker and Service Canada as soon as possible. Cancelling a job offer can have serious/negative immigration consequences for the foreign worker, so it is a decision that should not be taken lightly.

What should I do if provincial minimum wages changes after getting positive LMIA?

Provincial Labour standards always override the LMIA approval. If the minimum provincial wage is now higher than the LMIA approved wage rate, you need to adjust the worker’s wage rate to match the current provincial minimum wage.

Can I promote foreign worker who is already working with the company on an LMIA based work permit?

Positive LMIA and the work permit specify the name of the employer, the position, and the location of work. None of these criteria can change unless a new LMIA and a new work permit is first obtained. The exception is that the name of the employer can change if the business is sold and the worker remains in the same position and same location.

If you want to give your foreign worker a promotion, you first need to go through the LMIA process in order to demonstrate a labour shortage for the new position, obtain an approved LMIA, and then have the foreign worker obtain a new work permit for the new position.

Can I give a raise or bonus to foreign worker who is already working on an LMIA based work permit?

Wage/Salary and working hours are specified in a positive LMIA. Increase in wages/salary (once the foreign worker has started his/job) can have issues/problems during the compliance audit. If employer had advertised a higher wage/salary in the first place, they may have had Canadians or Permanent Residents who were interested in the position, and then you would not have required to hire a temporary foreign worker.

However, an employer can increase salary/wages if the prevailing wage rate changes during the employment. The prevailing wage rate is the government acceptable wage rate for each position and location. If a scheduled pay increase is part of your business, you may specify in LMIA application in order to give yourself the option to provide the same pay raises to a foreign worker that you provide to your Canadian employees.

When can I apply for an LMIA?

You can submit LMIA application up to six months prior to the expected job start date.

How long does it take to get a LMIA?

The processing times are averaged across all processing centres in Canada. Timelines represent the average time it takes to process an application from when it is received by Service Canada to when the decision is made on the application.

LMIA Stream
Processing Time (in business days)
Global Talent Stream 13
Agricultural stream 12
Seasonal Agricultural Worker Program 5
Permanent residence stream 40
In-home caregivers 17
High-wage stream 51
Low-wage stream 49

Global Talent Stream and applications that qualify for expedited service have a service standard of 10-business days that is expected to be met 80% of the time. The service standard date starts on the business day after the application has been received.

How Can X can help?

  • The LMIA rules, regulations and requirements are subject to frequent changes. These changes deal with different categories of jobs, duration, exemptions etc. Continuous research, attention to detail and painstaking hard work is required to obtain a positive LMIA. We help in assessment of our client’s profile and advice them on their eligibility to get an LMIA.
  • We also assist our clients/employers with the advertisement posting.
  • We help Canadian employers for applying Labour Market Impact Assessment (LMIA) application and legally representing them before ESDC during the procedure.

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