Labour Market Impact Assessment (LMIA)

Labour Market Impact Assessment (LMIA)

Labour Market Impact Assessment (LMIA) is required to hire a foreign worker when employers unable to find a Canadian or Permanent Resident to fill a labour shortage. Canadians and PRs are not interested in the position based on the occupation, wages and/or location or actual shortage of skilled Canadians to fill the position are common reasons of labour shortage.

Canadian employer must have made every efforts to fill the position with a Canadian or permanent resident. If employers cannot fill the position after 28 days (four weeks), they can then submit an LMIA application requesting to fill the position with foreign workers.

Employer must:
  • Demonstrate that significant efforts have been made to fill the position with Canadians or PRs
  • Publicly advertise the occupation, wage and working conditions on the Canadian Job Bank and two other additional recruitment methods such as internet, newspapers etc.
  • Focus advertising efforts on groups of Canadians who are under-represented, such as Aboriginals or persons with disabilities.
  • Offer the median wage specific to the position which is different in each province and regions within provinces
  • Actively engaged in a business that: legally exists and operates, provides goods or services, has a physical location in Canada where foreign worker will work, and can provide stable employment for the specified requested period
  • Be able to afford and pay the foreign worker
  • Not an ongoing labour dispute for the position offered

Employment and Social Development Canada (ESDC) will determine the legitimacy of the company and employer’s ability to afford the wage being offered. ESDC assesses an offer of employment to ensure that the employment offered to a foreign worker will not have a negative impact on the Canadian labour market. Employer will be required to provide a variety of information about the position for which they want to hire a foreign worker, including the number of Canadians who applied for the position, the number of Canadians who were interviewed, and detailed explanation for why the Canadian workers considered were not hired.

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ESDC assessment will result in positive impact or negative impact on the Canadian labour market.

Positive/Neutral Impact – By approving the job position, the new position will create more jobs for Canadians and/or the Canadians will receive training and experience from the foreign worker, and also fill a current labour shortage.

Negative Impact – Approving the job position would increase unemployment for Canadians.

LMIA Categories
  • Low Wage LMIA

Wage being offered is below the provincial median rate.

  • High Wage LMIA

Wage being offered is equal to or above the provincial median rate. Employer require to submit a transition plan to ESDC with LMIA application. The transition plan should indicate how the company plans to reduce their reliance on temporary foreign workers. Proof of investment in skills training or hiring Canadian apprentices are examples of how employers can prove they plan to reduce their reliance on temporary foreign workers. Proof that employer is assisting their high-skilled temporary foreign worker in becoming a Canadian Permanent Resident can also qualify as the transition plan. If the employer is chosen for an inspection or if reapply for LMIA, employer will be required to report on the progress of their transition plan.

  • LMIA for a Caregiver

To hire a caregiver by a Canadian or a permanent resident.

  • LMIA to support permanent residency

To support the applicant in becoming a permanent resident.

  • Dual Intent LMIA

To support the applicant in becoming a permanent resident and to support a work permit while the foreign worker waits to become a permanent resident.

Employers are required to attest to their awareness that they are prohibited from laying off or cutting the hours of Canadian workers if they employ foreign workers.

Documents required for an LMIA application
  • Proof of recruitment activity
  • Business registration or legal Incorporation documents (if first LMIA application)
  • Provincial/municipal business license (where applicable and if first LMIA application)
  • Canada Revenue Agency (CRA) documents: T2 Schedule 100 Balance Sheet Information and T2 Schedule 125 Income Statement Information (for corporations)
  • T4 summary of remuneration paid
  • PD7A statement of account for current source of deductions
  • T2125 Statement of business or professional activities
  • 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.
  • Commercial lease agreement (where applicable)
Let us help you with your 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.

  • 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 (employer) 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.
  • Provide ESDC with copy of advertisement and information to demonstrate where, when and for how long the position was advertised.