An LMIA Canada is a document issued by the Government of Canada, approving a Canadian employer to hire one or multiple temporary foreign workers (TFW). Canadian employers need a Labor Market Impact Assessment (LMIA) if they want to hire a TFW.
- 1. What is an LMIA Canada
- 2. LMIA duration
- 3. LMIA Canada requirements
- 4. Main steps in the LMIA Canada process
- 5. LMIA Canada new rules 2023
- 6. How to apply for a Labor Market Impact Assessment (LMIA) 2023
- 7. Hiring without LMIA
- 8. When to apply for an LMIA
- 9. LMIA Canada Processing Times
1. What is an LMIA Canada
Labor Market Impact Assessment (LMIA Canada) is a document issued by the Government of Canada, allowing employers to be able to hire one or multiple Temporary foreign workers (TFW) when they are unable to find a Canadian or permanent resident worker to fill labor shortage. A positive LMIA ensures that the employer can hire Temporary foreign workers.
There are three possible results of the LMIA assessment: positive, neutral, or negative.
Providing that the outcome is a ‘positive’ or ‘neutral’ effect on the labour market, the employer may proceed and offer a job to a foreign national.
To hire a Temporary foreign worker on LMIA, it is important to assess the category to which the employer must apply. There are separate LMIA Categories, and the employer needs to ensure to use the correct category under which they can apply.
There are specialized categories such as Express Entry, Global Talent Stream, Academics, Agriculture, Caregivers, Positions in Quebec and General Applications for High and Low wage streams.
2. LMIA duration
As of April 4,2022, the employers may request an LMIA validity extension up to 18 months if the previously issued LMIA has a validity period of 6 or 9 months with the exception of SAWP LMIA’s.
Due to COVID-19 and its effects on the Labor Market, the temporary Foreign Worker Program is increasing the allowable employment duration from 1 to 2 years for Low wage positions and from 2 to 3 years for High wage positions. This will help the Employers to retain employees for longer periods.
3. LMIA Canada requirements
To hire TFW’s in Canada, all the employers need to provide Business Legitimacy documents in order to show that:
- The business has no past compliance issues
- The business can fulfill all of the terms of the Job Offer
- The business is providing a good or service in Canada
- The business is offering employment that is consistent with the needs of the business.
Recruitment is required to apply for most of the LMIA categories to ensure that efforts have been conducted to hire Canadians and Permanent Residents before offering a job to a temporary foreign worker. There are different advertising requirements depending on the stream the employer is applying for. The general advertising requirements include advertising on mandatory website Job Bank and 2 additional methods of recruitment.
Contact us to ensure proper advertising is done in required websites to avoid a negative decision on a LMIA application.
4. Main steps in the LMIA Canada process
a. Determining eligibility of an employer
Employers need to determine if they are eligible to hire Temporary Foreign Workers in Canada depending on the program requirements to apply for LMIA.
Mandatory advertising for 28 days is a requirement for most of the LMIA streams and failure to do so and on correct resources can affect the LMIA decision.
Wages, working conditions and occupations – The employer has to offer at least minimum prevailing wage in the region to the Temporary Foreign worker or the same wage the employer is paying the Canadians at the same work location in the same occupation whichever is higher.
- pay workers for all work (including overtime, where required by law)
- make sure that the workplace is safe, and
- allow for proper break time and days off
c. Selecting the right stream
Selecting the Right stream for LMIA is a very critical step to apply for an LMIA. Choosing the wrong stream can result in delay of process or even a negative decision. The employer needs to use the latest forms to apply for the Labor Market assessment. Using old forms can result in refusal to process the application.
d. LMIA Canada Fees
In most cases the LMIA Fees is $1000 per worker with some exceptions including the Agricultural Stream, SAWP and some Caregiver applications.
e. What to do after a Positive LMIA Canada
Once an employer receives a positive decision on the LMIA, the employer can use this LMIA to apply for their work permit application.
If your application results in a negative decisionIt is crucial to seek professional advice from a licensed Immigration Consultant as the advice of a professional can further explain the decision of the officer and answer questions you may have about the LMIA application.
Should you wish to reapply, the Immigration Consultant can assist in ensuring an accurate application is submitted.
If you are looking for assistance on your LMIA application, you can contact our office at 1-778-366-0660 or send us an email at firstname.lastname@example.org and we would be happy to assist you.
5. LMIA Canada new rules 2023
Some new changes have been introduced to LMIA.
For Agriculture LMIA
Effective January 12,2022 until June 30,2023, minimum advertising requirements has been suspended for the employers to hire Temporary foreign workers through LMIA. This rule was earlier effective till June 30,2022 but has recently been extended for one more year.
For Low-Wage LMIA
The Temporary foreign worker program has removed policy variations for “Owner/Operator” LMIA’s for all applications received on and after April 1,2021. These applications will be processed under the normal process.
Effective April 30,2022, the less than 10 people exemption has been removed. The employers with less than 10 workers will have to fill out the Cap information with respect to the sector the companies will fall under.
The Cap for some Low wage occupations has been increased to a cap limit of 30% to hire temporary foreign workers for the following sectors and subsectors.
- Construction (NAICS 23)
- Food Manufacturing (NAICS 311)
- Wood Product Manufacturing (NAICS 321)
- Furniture and Related Product Manufacturing (NAICS 337)
- Hospitals (NAICS 622)
- Nursing and Residential Care Facilities (NAICS 623)
- Accommodation and Food Services (NAICS 72)
6. How to apply for a Labor Market Impact Assessment (LMIA) 2023
Service Canada has introduced a new online portal for employers to apply for LMIA.
Note:For more efficient LMIA application process, Service Canada strongly recommends that you submit your applications electronically using the LMIA Online portal.
To access LMIA Online, an employer must have a valid JOB BANK user account for authentication purposes.
Contact us to complete your registration process and LMIA application via the LMIA Online Portal.
Employers still have the option to email or fax LMIA Applications to designated Service Canada Centers.
Service Canada is also making efforts to protect Employers’ financial information as the LMIA forms will only need partial digits for the credit card and upon application receipt, Service Canada will call the employer to collect the remaining digits for the payment.
7. Hiring without LMIA
There are multiple ways to apply for a Work permit without an LMIA. One of the ways is through the International Mobility Program. In most cases the employer will have to submit an offer of Employment through the Employer Portal before the applicant can apply for a work permit.
Contact us to find out If you need an LMIA to apply for your work permit.
8. When to apply for an LMIA
Employers can apply for an LMIA up to 18 months before the foreign workers’ expected job start date.
It is not required to have foreign workers selected at the time of the LMIA application. Employers can utilize so called ‘Unnamed Labour Market Impact Assessment’ and choose foreign workers within 18 months following the LMIA approval.
It is also known as pre-approved LMIA or LMIA pre-approval.
That is to say, unnamed LMIAs give employers flexibility to hire when a qualified foreign worker is recruited.
9. LMIA Canada Processing Times
Processing times for LMIA vary for different streams.
The Average LMIA processing times for December 2022:
|LMIA Stream||Average Processing Times|
|Global Talent Stream||10 business days|
|Agricultural Stream||18 business days|
|Seasonal Agricultural Stream||11 business days|
|Permanent Residency Stream||17 business days|
|In-home caregivers||25 business days|
|High-Wage stream||34 business days|
|Low-Wage stream||36 business days|
Please note that these processing times are averaged across all processing centers in Canada. Timelines represent the average time it takes to process a complete application from when it is received by Service Canada to when the decision letter is sent to employers.
Many factors must be evaluated before an LMIA decision can be issued.
In order to reduce delays in processing your application, employers need to:
- ensuring the Labour Market Impact Assessment application is complete before it is submitted
- responding promptly to Service Canada requests for additional information or documentation
The LMIA application is quite complicated, in order to avoid receiving a negative decision, our accredited immigration consultants at Silvester & Associates can help you through the LMIA process.
Schedule a free consultation for employers today!
Contact us: 1-778-366-0660