What is a Labour Market Impact Assessment?

A labour market impact assessment (LMIA), is a document that an employer in Canada may need to obtain from Employment and Social Development Canada (ESDC) before being permitted to hire a foreign worker. A positive LMIA shows that there is a need for a foreign worker to fill the position the employer is seeking. It also demonstrates that there is no Canadian worker or permanent resident available to do the job, ensuring the job cannot be filled by workers from the Canadian labour market.

Who Needs an LMIA?

Generally, employers are required to apply for a labour market impact assessment before they can hire a foreign national. Canadian employers are typically the ones required to apply for an LMIA when they wish to hire foreign workers. However, if the foreign national falls under an exemption the employer will not need an LMIA.

How Do I Apply for an LMIA? 

Applying for a Labour Market Impact Assessment (LMIA) is a critical step for Canadian employers seeking to hire foreign workers. Recent updates to the Temporary Foreign Worker Program (TFWP) have introduced new rules and requirements that employers must adhere to. This guide outlines the updated process for applying for an LMIA, incorporating the latest changes to the program.

1. Determine the Appropriate Stream

The wage offered for the position determines whether you should apply under the high-wage or low-wage stream. The median wage of your province or territory serves as the benchmark:

• High-Wage Stream: If the wage is at or above the provincial or territorial median wage.

• Low-Wage Stream: If the wage is below the provincial or territorial median wage.

Note: As of November 8, 2024, the wage threshold for the high-wage stream has increased by 20% above the current median wage in the applicable province or territory. This change affects the classification of positions between high-wage and low-wage streams.

2. Demonstrate Business Legitimacy

Employers must prove that their business and job offer are genuine. Required documents include:

• A valid municipal, provincial, or territorial business license.

• The most recent T4 Summary of remuneration paid.

• The most recent PD7A Statement of account for current source deductions.

• An attestation confirming engagement in a legal business that provides a good or service in Canada, along with a description of the main business activity.

Update: Effective October 28, 2024, employers can no longer use attestations from lawyers or chartered professional accountants to prove business legitimacy. Alternative documentation must be provided to meet this requirement.

3. Conduct Recruitment and Advertising Efforts

Employers are required to make genuine efforts to hire Canadian citizens and permanent residents before offering a position to a foreign worker. This involves:

• Low-Wage Positions: Advertising on Job Bank Canada and at least two additional recruitment methods targeting underrepresented groups.

• High-Wage Positions: Advertising on Job Bank Canada and at least two additional national recruitment methods accessible to residents across provinces.

Advertisements must run for a minimum of four consecutive weeks within the three months prior to submitting the LMIA application.

New Measures for Low-Wage Positions: Starting September 26, 2024, certain LMIA applications for low-wage positions are subject to additional measures:

• Applications in census metropolitan areas with an unemployment rate of 6% or higher may not be processed.

• The cap on the proportion of low-wage positions is reduced to 10% in some sectors and to 20% in the construction and healthcare sectors.

• The maximum employment duration for low-wage positions is reduced from two years to one year.

4. Submit the LMIA Application

After completing the above steps, submit your LMIA application to Employment and Social Development Canada (ESDC). Ensure all information is accurate and complete to avoid delays or refusals.

Temporary Refusal to Process in Montréal: From September 3, 2024, to March 3, 2025, certain LMIA applications for low-wage positions in the Montréal economic region will not be processed. Employers in this region should consult the latest guidelines before applying.

Does an LMIA Help with Permanent Residency?

LMIAs are a great tool to help temporary foreign workers in Canada work towards permanent residency. The Government of Canada believes that foreign workers can help employers meet their labour needs when Canadians and permanent residents are not available. Therefore, if an employer wants to hire a skilled foreign worker, they can simultaneously support their permanent resident visa application with a valid job offer under the Express Entry system. If you are submitting an LMIA in support of a foreign national’s permanent residency application, you are exempt from submitting a transition plan or cap calculation with your application. 

What is a Global Talent Stream LMIA

The Global Talent Stream facilitates the recruitment of specialized temporary foreign workers (TFWs) crucial for scaling and growth. Additionally, it caters to businesses aiming to fill in-demand, highly skilled positions listed on the Global Talent Occupations List. Another avenue for Canadian employers to bring in highly skilled workers without needing a traditional LMIA is through the International Mobility Program, which is designed to attract individuals for knowledge transfer and socio-economic exchanges, exempting employers from the LMIA process.

GTS Program Requirements and Application Process

Employers venturing into the Global Talent Stream must adhere to specific program requirements. Central to this is the development of a Labor Market Benefits Plan (LMBP), showcasing the employer's commitment to activities benefiting the Canadian labor market. Regular progress reviews ensure ongoing compliance and alignment with commitments.

A key advantage of the GTS is the expedited processing timeline, with a service standard of 10 business days for LMIA processing, supported by personalized assistance from TFWP officers. Additionally, approved applicants benefit from accelerated work permit processing by Immigration, Refugees, and Citizenship Canada (IRCC), further enhancing operational efficiency.

Why Hire AKM Law for Hiring Foreign Workers Through Your LMIA Application

By choosing AKM Law to assist with your LMIA application, you are securing the expertise of a professional team of lawyers, dedicated to navigating the complexities of Canadian immigration. With years of experience in immigration law, AKM Law possesses the knowledge and skills necessary to guide you through the LMIA process with confidence. Our firm prides itself on keeping up-to-date with the ever-changing requirements and regulations surrounding LMIA applications, ensuring that your case is handled with precision and efficiency. Our commitment to professionalism means that we approach each case with meticulous attention to detail, providing personalized guidance tailored to your specific needs. By entrusting your LMIA application with our lawyers, we assure you that you are receiving top-tier legal representation that prioritizes your success and peace of mind. Additionally, our firm is adept at handling LMIA-exempt work permits, offering comprehensive support for both standard and LMIA-exempt processes.