A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) to assess the impact of hiring a foreign national for a job in Canada.
- A positive LMIA means no Canadian citizen or permanent resident is available for the role, allowing the employer to hire a foreign worker.
- A negative LMIA means the position should be filled by a Canadian citizen or permanent resident.
LMIA Application Process
Employers can apply for an LMIA up to six months before the intended job start date. The LMIA process varies based on the wage level of the job:
- High-wage positions
- Low-wage positions (require additional compliance)
There are specialized LMIA streams, including:
- Hiring Foreign Skilled/Semi-Skilled Workers
- Hiring In-Home Caregivers
- Hiring Agricultural Workers
- Hiring within Quebec
LMIA Application Requirements
An LMIA application must be submitted via hard copy to the appropriate Service Canada Processing Centre and must include:
1. Processing Fee
A $1000 CAD fee per application (non-refundable, except for in-home caregivers).
2. Business Legitimacy Documents
Proof that the employer is a legitimate Canadian business.
3. Transition Plan
Employers must outline a strategy to eventually hire Canadian citizens or permanent residents instead of foreign workers.
4. Recruitment Efforts
Evidence that the employer actively tried to hire Canadian workers before recruiting a foreign national.
5. Wages & Fair Pay
The LMIA application must specify wages to ensure foreign workers receive the same pay as Canadian employees.
6. Workplace Safety Compliance
Proof that Temporary Foreign Workers (TFWs) will receive health insurance coverage equivalent to provincial/territorial standards.
Additional Requirements for Low-Wage Workers
Employers hiring low-wage workers must also:
- Cover transportation costs to and from Canada
- Provide affordable housing options
- Limit the number of low-wage foreign workers per location
What Happens After LMIA is Approved?
Once an LMIA is processed, the employer will receive a decision:
- Positive LMIA – The employer can hire a foreign worker. A positive LMIA is valid for six months from the issue date.
- Negative LMIA – The employer cannot proceed with hiring a foreign worker.
After obtaining a positive LMIA, the employer must notify the foreign worker so they can apply for a work permit or permanent residence.
Expedited LMIA Processing (10 Days)
Employers outside of Quebec may qualify for 10-day processing if they meet any of these criteria:
- Highest wage positions – Top 10% wage earners in the province
- Skilled Trades – Paid at least the median provincial wage
- Short-Term Positions – Jobs lasting 120 days or less
- Express Entry – The LMIA is to support an Express Entry candidate
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