5 Things You Must Know About LMIA in Canada

Surya Rathee
[Published 11 Jun, 2024 | 04:47 PM]
About Author - 6 min read
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Canadian employers hiring some foreign workers need to obtain the LMIA before the worker is allowed to work in Canada, others are LMIA-exempt.

But, what exactly is an LMIA?

An LMIA, or Labour Market Impact Assessment, is an official document that some employers in Canada, require to have for them to be allowed to hire a Temporary Foreign Worker (TFW). This document is the document the immigrant presents before he/she is issued a work permit by the employer. A positive LMIA demonstrates that the foreign worker will not be a risk to the economy and employment opportunities in Canada but will be an asset or will not have any negative effect at all.

It is basically a document which shows that there are no Canadian Citizens or Permanent Residents available in order to fill in-demand occupations in Canada. It is important to note that employers in Canada are allowed to hire people from anywhere in the world provided they have an LMIA. These employers are permitted by the government to recruit and bring in skilled, semi-skilled or even unskilled workers if they cannot find Canadians to hire.

Apart from the overview, here are 5 things you must know about LMIA in Canada.

1. Importance of LMIA for Canadian Employers

LMIA plays a crucial role for Canadian employers in order to be able to hire foreign workers. It ensures that the recruitment of a foreign worker is appropriate since no Canadian equivalent can be provided for the particular position. In any given LMIA, the government ensures that employers have tried to recruit domestic workers locally first – safeguarding employment for Canadians and permanent residents. In this regard, an LMIA is an essential prerequisite in situations where employers apply for labour market shortages, particularly in certain fields.

2. Employer’s Responsibility

Employers are first required to show that they attempted to hire a Canadian citizen or permanent resident first. This majorly includes advertising the job in various places - and interviewing potential candidates. They must provide proof of this. Additionally, they need to offer wages and working conditions that are comparable to those offered to Canadians. This helps to ensure that foreign workers are treated fairly and that the Canadian labour market is protected.

3. Types of LMIA

The Canadian government provides several categories of LMIAs depending on the occupation or circumstances. Some of the most requested ones are the high-wage and low-wage LMIAs. High-wage jobs are occupations that pay a wage rate higher than the default wage rate of the provincial or territorial level. Low-wage employment means employment that pays less than the average income in Canada. There are also targeted categories for positions in some occupation groups like farming and food processing, and caregiving, and for certain programs, like the Global Talent Stream, which is designed to help technology firms access specialized talent as soon as possible.

4. Application Process

An LMIA is also known to go through a complex and slightly time-consuming application process. It indicates that the Canadian employers must complete certain application forms and submit the basic and background information about the company they are operating, the position they are seeking to fill in, the efforts that have been made to source the candidate domestically, and the profile of the foreign worker they want to hire. The entire process also involves a fee that the employers must when submitting an LMIA application. Once successfully submitted, the application is reviewed by Service Canada, which can take several weeks or even months.

5. Impact of Foreign Workers

For a foreign worker, obtaining a Work Permit often depends on the LMIA. Once an employer receives a positive LMIA, the foreign worker can apply for a Work Permit and immigrate to Canada. This permit allows them to live and work in Canada for the duration specified. Furthermore, the LMIA helps ensure that their employment will not negatively affect the Canadian labour market and that they will be working under fair conditions. Having a work permit can also be a stepping stone towards permanent residency in Canada, making it an important step for many immigrants looking to apply for Canada PR visa.

Recent News About LMIAs

The amendments to the TFWP were made public on March 21 through a news conference when Immigration Minister Marc Miller and Employment Minister Randy Boissonnault unveiled the new policy measures. One such change is, from political states, the validity of LMIA will now be set to six months from the previous 1-year due to the effect of the pandemic. This adjustment is planned to be implemented on the 1st of May the year 2024.

Before this, during the COVID-19 pandemic, Canada also made the LMIAs extendable up to 12 months. Such a short-term measure was used to “assist in alleviating stresses in the labour market” in many regions of the country. The extension of the validity period is consistent with the normal policy of six months and, therefore, the change made is an improvement.

The Labour Market Impact Assessment (LMIA) process is a crucial pathway for foreign workers to earn and live in Canada. However, navigating the LMIA process can be complex and confusing for many applicants. If you’re having trouble, seek a quick free consultation from the Canada immigration consultants at Nationwide Visas.

Get a free consultation session. Call us@ +91 92 92 92 92 81 or email us at info@nationwidevisas.com.

Good Luck!

Read More: LMIA-Exempt Jobs In Canada