Labour Market Impact Assessment

Labour Market Impact Assessment (LMIA) Validity

An LMIA is issued by Employment and Social Development Canada (ESDC). It is typically valid for up to six months from the date of the decision, unless otherwise specified in the letter. The worker must apply to Immigration, Refugees and Citizenship Canada (IRCC) for the work permit before it expires. It does not need to be approved by the end of the LMIA validity period. There is no extension available for the LMIA.

During times of high unemployment, some areas or industries may stop hiring people at low wages. Before you file or advertise, check for any notices stating that you can’t process.

Labour Market Impact Assessment (LMIA) Eligibility

Employers apply for an LMIA when no domestic worker can fill a vacancy. If the application is approved and a positive LMIA is granted, the worker can request a work permit from Immigration, Refugees, and Citizenship Canada (IRCC). Obtaining a Canadian work permit is usually a two-step process:

1. Employer submits an LMIA application to ESDC
2. Foreign worker submits a work permit application to Citizenship and Immigration Canada (CIC)

Under the LMIA system, job positions are divided into two categories:

• High-wage: Jobs whose salary meets or exceeds the median wage in the province where the job is located.
• Low-wage: Jobs whose salary is below the median wage in the province where the job is located.

Unlike high-wage workers, low-wage workers have a cap that restricts the number of workers an employer can hire. A Canadian business with more than 10 or more employees applying for a new LMIA is subject to a cap of 10% on the proportion of their workforce that is allowed to be made up of low-wage temporary foreign workers. This cap has some exceptions and is not applied to certain situations, including hiring TFWs for on-farm agricultural positions.

Once an employer receives a positive LMIA, foreign nationals can apply for a work permit.

The majority of Canadian employers require a Labour Market Impact Assessment before hiring a temporary foreign worker. Before you start the hiring process, you will need to determine if you need an LMIA or if you may be exempt from this requirement.

How to Check An Exemption – Step by Step

To check if you and the TFW you want to hire are exempt from needing an LMIA or work permit, here are the steps you can take:

• Review the LMIA exemption codes and work permit exemptions – each LMIA exemption and work permit codes provide detailed information so you can work out which, if any, are relevant to your hiring situation. If you do find one that applies, you will need to include it in your offer of employment. Or you can:
• Contact the International Mobility Workers Unit if you’re hiring a temporary foreign worker who is both a) outside Canada at present, and b) from a country whose nationals are visa-exempt. If you are unsure, request an opinion from the International Mobility Workers Unit
• If exempt, submit the Employer Portal offer, pay the compliance fee, and give the worker the offer number for their application.

LMIA exemptions

Below are some of the most common LMIA exemptions. However note that even if a job is LMIA-exempt, foreign workers must still obtain a work permit in order to work in Canada.

• Certain professions including experienced healthcare and essential workers, tech professionals, self-employed graphic designers, writers
• Dependents (spouse and children) of foreign workers who hold a Canadian work permit for a skilled position (but not working holiday visa holders).
• International Mobility Program (IMP) – this program enables Canadian employers to hire TFWs without the need for an LMIA
• International Agreements – jobs included in an international trade agreement, including:
  • North American Free Trade Agreement (NAFTA)
  • Canada-Chile FTA / Canada-Peru FTA / Canada-Colombia FTA / Canada-Korea FTA
  • Canada-European Union Comprehensive Economic and Trade Agreement (CETA)
  • General Agreement on Trade in Services (GATS)
• Jobs included in an agreement between the federal government and a provincial/territorial government.
• Canadian Interest Exemptions – jobs that are in the best interests of Canada.
• Intra-Company Transferees
• Foreign workers with no other means of support
• Certain permanent residents living in Canada
• Individuals in certain other humanitarian situations

LMIA exemptions and requirements can be complex to work out. Get in touch with Total Law for assistance with hiring foreign workers in Canada or with your work permit application or call us on +1 844 290 6312 for immediate assistance.

There are a number of requirements to be met when an employer applies for an LMIA, as follows:

• The business must provide goods or services to the public
• The TFW job must be a salaried position
• There is a genuine need for a foreign worker in a role that cannot be filled by a Canadian citizen
• The business has not laid-off employees in the 12-months period preceding application
• Advertise the job vacancy in the Canadian job market for at least four weeks before applying for an LMIA, including using 2 or more other recruitment methods in addition to advertising on Job Bank
• High-wage positions – the employer must have a transition plan that shows how they plan to reduce their reliance on TFWs
• Low-wage workers – employers submitting LMIA applications for low-wage positions must provide low-wage workers with adequate transportation to and from Canada at their own expense
• Low-wage workers must also be provided with adequate housing for the duration of their employment in Canada
• The language requirement of the job advertised and the LMIA must only be English and French. If another language is needed the employer must provide the reasons for this
• Employers are required to show they understand that they cannot lay off  or cut the hours of Canadian workers if they employ foreign workers

There are also requirements to submit a number of supporting documents for an LMIA application.

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

Practical Tips for Employers

• Write down the LMIA’s expiration date as soon as you get it. The worker should try to file the permit within 60 to 90 days.
• If you still need the role after the first permit, make plans in advance. Several months before the permit ends, start the next LMIA.
• Employers may make multiple LMIA applications at a time or within the same year; there are caps on hiring Temporary Foreign Workers (TFWs) for low-wage jobs. You can generally only submit an LMIA application once a year. However, certain exemptions apply for seasonal industries.
• Before you post a job, check the unemployment rate for low-wage jobs in your area. If processing is paused, consider a higher wage that meets the threshold or an exemption route.

An employer can apply for an LMIA as early as 6 months before the planned start date for the job position. The LMIA application process you need to follow is determined by whether the position is considered high-wage or low-wage, as well as the stream through which you are applying. The LMIA process has the following streams:

• Global Talent Stream
• Agricultural Stream
• Seasonal Agricultural Worker Program
• Permanent Residence Stream
• In-Home Caregivers
• High-Wage Stream
• Low-Wage Stream

LMIA applications are processed in multiple locations across Canada, depending on the stream or job location, and it’s vital you send your application to the appropriate office, to avoid processing delays. You can submit your LMIA application by physical mail, online or via email.

By Mail

You will need to submit the LMIA application in hard copy format by mail, to the appropriate Service Canada Processing Centre.

Online

Submitting your application online is a more efficient application method. You can do this via their online portal. To login to LMIA Online, an employer (or third party if applicable) needs to have a valid Job Bank user account for authentication purposes.

By email

You can email your LMIA application and supporting documents to the appropriate email address based on your stream and job location, which can find on this page. Documents must be in PDF, RTF, TXT or in JPG format and must not be over 4MB in size.

LMIA refusals

Note that there can be certain conditions where an LMIA is refused to be processed. These conditions include:

• Regulatory authority
• Public policy considerations in ministerial instructions
• Certain positions in accommodation and food services and retail trade sectors

If your LMIS application is refused, you will not be charged the processing fee. You will be informed by letter and this will include the reason for your LMIA application not being processed.

Applying for an LMIA can be complicated if you are not familiar with the process. Contact Total Law to get help with your LMIA application and maximise your chances of your hiring process or work permit proceeding without delay. Take the first step and call us on +1 844 290 6312.

You must show proof that the business is open and active, evidence of your recruitment process and previous recruitments, and that you have job details and pay.

Employers applying for an LMIA are assessed against certain criteria for which supporting documents must be submitted. The requirement for additional supporting documents depends on whether you have made a previous LMIA application and the type of LMIA application you are submitting.

If you have received a positive LMIA decision in the past two years with the most recent LMIA decision being positive then you may be exempt from providing some or all supporting documents.

If you have not received a positive LMIA decision within the last 2 years, you must provide supporting documents with your application. The list below covers most cases; however, there could be additional documents needed depending on your LMIA stream.

• Canada Revenue Agency documents – Most recent documents
• Ability to fulfill terms of the job offer – This is required if you are not in receipt of a positive LMIA from the last 2 years. For example T2 Schedule 100 Balance sheet information, T3010 Registered charity information return, an attestation (by a lawyer or accountant) confirming that your business will be able to meet all financial obligations to any temporary foreign worker you hire. For trucking positions, additional documentation is required such as a current copy of your carrier profile and current fleet insurance
• For all private household employers – Most recent Canada Revenue Agency notice of assessment (NOA) and documentation showing your income exceeds the low income cut-off (LICO) produced by Statistics Canada if you are a family or private household hiring a worker
• Proof of providing a good or service – This is required if you are not in receipt of a positive LMIA from the last 2 years. For example:
  • your valid municipal/provincial/territorial business license
  • T4 summary of remuneration paid
  • PD7A Statement of account for current source deductions
  • an attestation confirming that you are engaged in a legal business that provides a good or a service in Canada where an employee could work and a description of the main business activity
• Permanent residency stream only (excl. Quebec) – Confirmation that the business has been operating for at least one year
• In-home caregiver positions – Proof of address if different to employer’s. Examples can be driver`s license, utility bill, provincial/territorial identification card, bank statement, CRA notice of assessment or a statement of other government benefits such as CPP, OAS or GIS

Note that trucking positions, positions onboard a foreign vessel undertaking coastal trade in Canadian waters, and in-home caregiver positions require additional documents to be submitted to prove that the employer has a reasonable employment need.

If any document is in a language other than English or French, include certified translations with an affidavit for translations attesting to the document’s legitimacy. Any document submitted in a language other than the official languages (English or French) must be accompanied by an English or French translation.

Incomplete applications and supporting documents are not returned to the employer; therefore, it’s essential to send only certified copies of documentation, not originals.

Since there are many factors to consider when determining which supporting documents you need to supply, we highly recommend the services of Canadian immigration specialists to avoid delays in your hiring process. Contact Total Law now online or through  +1 844 290 6312 for timely advice on the LMIA and Temporary Foreign Worker Program.

The standard processing time for an LMIA to be issued varies according to the stream you are applying for and the season. A high-wage application typically takes longer to process than a low-wage application. On average, the timeframe can vary between 8 and 33 business days, although in some cases, it may be longer. Incomplete files may lead to delays or refusals. A labelled index and clear evidence make it easier to review and make decisions quickly.

Expedited LMIA processing

Certain applications are processed within 10 business days if they meet at least one of these criteria (excluding applications for positions within Quebec):

•  Jobs for skilled trades on the list of eligible occupations where the wage is at or above the provincial or territorial hourly median wage
• Jobs with wages in the top 10% of wages earned by Canadians in that province or territory
• Jobs with a short duration of 120 days or less where the wage is at or above the provincial or territorial hourly median wage
• Jobs under one of IRCC’s Express Entry eligible programs

Note that this expedited service is only performed if:

• Your application is complete
• No additional clarification of any aspect of your application is required
• You have not been selected for a compliance review

The processing fee for an LMIA is 1,000 CAD per position.

In cases where the appointment is considered beneficial to public policy and an exemption is granted, the employer may pay the Privilege fee instead, which is $ 100 CAD. Certain LMIA applications for in-home caregivers may be exempt from this fee.

For Employers

Employers will receive three documents upon a positive LMIA application: the LMIA decision letter, Annex A and Annex B (for employer reference only). It is their responsibility to share the decision letter together with Annex A with the employee, enabling them to apply for a work permit and/or permanent residence visa. If you receive a positive LMIA, this is what you will receive and how you should use the documentation:

• A copy of the LMIA decision letter showing a positive LMIA should be shared with the employee
• A copy of Annex A should be shared with the employee. This provides the information required for an employee to apply for a work permit. It will have details about the job offer, occupation, wages and working conditions. The employee will use the LMIA file number in Annex A for their work permit application.
• Written job offer signed by the employee and employer
• If you applied for the LMIA for an unnamed employee, you must submit the Foreign Worker Name template provided with the LMIA to the Service Canada Processing Centre as soon as you know the name of the TFW. You should “Request to Add or Remove a Name on an LMIA” form, use code ESDC-EMP5661, and send it to the same processing centre indicated on your LMIA decision letter via email or mail.
• If the job terms change, you should follow the modification guidance or file a new LMIA
• After supplying the employee with the positive LMIA letter, Annex A and a written job offer signed by both parties, an employer should ask the employee to apply for a permanent residence visa (if on an applicable route) and/or a work permit. You should ensure the worker applies for the work permit before your LMIA expires.
• For privacy reasons, Annex B that is provided with your positive LMIA is for your records only and must not be shared with the TFW

For Employee

• Apply for the work permit before the LMIA expiry date
• Include the signed job offer letter, contract of employment, the LMIA letter, and the LMIA number in the work permit application
• Provide forms, biometrics, and medical records if requested

If a negative LMIA is issued to the employer, the employer will unfortunately not be approved to hire a foreign national.

If an LMIA application comes back with a negative LMIA decision, an employer should address the rejection, taking the following steps:

• Read the reasons for the refusal one by one
• Address the issues with wage level, duty alignment, ad reach, or missing proof
• Look for any regional pause that might be affecting your stream
• Only reapply if the problems are fixed, or take an exemption route if you meet the requirements

Factors that Increase Chances of Success

To obtain approval, you must demonstrate a need, pay the correct amount, advertise effectively, and maintain a clean file. Patterns in sectors change over time. Your best tool is to strictly follow the stream rules and maintain a strong recruitment record.