A Labour Market Impact Assessment (LMIA) is a crucial document for Canadian employers who wish to hire foreign workers. The purpose of an LMIA is to ensure that hiring a foreign worker will have a positive or neutral effect on the Canadian labour market.
The Temporary Foreign Worker Program (TFWP) helps supplement the Canadian workforce when there are not enough qualified workers in Canada to fill a job. Employers looking to hire foreign workers through the TFWP may need to submit an LMIA application, which is reviewed by Employment and Social Development Canada (ESDC). This application must demonstrate that no qualified Canadians are being overlooked in favor of the foreign worker. Additionally, employers must provide salaries and benefits that meet provincial and federal standards. Each LMIA request costs $1,000 CAD per position.
Steps to Obtain an LMIA
Advertise the Job Vacancy:
The job vacancy must be advertised for at least four weeks before applying for an LMIA.
The employer must use at least three recruitment methods, including posting on the Canada Job Bank.
Employers should focus on advertising to underrepresented groups, such as First Nations and people with disabilities.
Only English and French can be publicized as job requirements unless another language is proven necessary for the job.
Prove Recruitment Efforts:
The employer must show that they have made genuine efforts to hire qualified Canadians before considering foreign workers.
Meet Salary and Benefits Standards:
The job must offer wages and benefits that are in line with federal and provincial standards.
Classify the Job as High-Wage or Low-Wage:
Determine if the position is high-wage or low-wage based on the provincial/territorial median hourly wages. This classification affects the LMIA process.
Median Hourly Wages by Province/Territory (as of April 30, 2022):
Province/Territory | Median Hourly Wage |
Alberta | $28.85 |
British Columbia | $26.44 |
Manitoba | $23.00 |
New Brunswick | $21.79 |
Newfoundland and Labrador | $24.29 |
Northwest Territories | $37.30 |
Nova Scotia | $22.00 |
Nunavut | $36.00 |
Ontario | $26.06 |
Prince Edward Island | $21.63 |
Quebec | $25.00 |
Saskatchewan | $25.96 |
Yukon | $32.00 |
Hiring High-Wage Workers:
For high-wage positions (wages at or above the median), employers must submit a transition plan with the LMIA. The transition plan ensures that the employer is taking steps to reduce their reliance on temporary foreign workers over time. Examples include investing in skills training for Canadians, assisting foreign workers in becoming permanent residents, or hiring Canadian apprentices.
Hiring Low-Wage Workers:
For low-wage positions (wages below the median), no transition plan is required. However, there are caps on the number of low-wage temporary foreign workers a business can employ. Employers with 10 or more employees can only have 20% of their workforce as low-wage temporary foreign workers. Employers must also:
Pay for the worker’s round-trip transportation.
Ensure affordable housing is available.
Pay for private health insurance until the worker is eligible for provincial health coverage.
Register the worker with the provincial/territorial workplace safety board.
Provide an employer-employee contract.
Global Talent Stream:
The Global Talent Stream, part of the TFWP, fast-tracks the hiring of foreign tech talent with a processing time of 10 business days for LMIAs and two weeks for work permits. There are two categories:
Category A: High-growth companies hiring unique specialized talent. Employers need a referral from a designated partner.
Category B: Employers hiring for occupations on the Global Talent Occupations List.
Both categories require employers to pay the prevailing wage, which is the highest of:
The median wage for the occupation on the Government of Canada's Job Bank.
The wage paid to current employees in the same position and location with similar skills and experience.
The minimum wage floor as defined in the Global Talent Occupations List (if applicable).
Facilitated LMIAs in Quebec:
Quebec has a facilitated LMIA process for certain occupations with proven labor shortages. This process does not require advertising the position or proving recruitment efforts. Employers must show that the foreign worker meets job requirements and that wages are consistent with those paid to Canadians. A transition plan is required for high-wage applications but only for subsequent applications in the same occupation and location.
By following these guidelines, Canadian employers can navigate the LMIA process and hire the foreign talent needed to fill critical labor shortages.
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