The following guide is for jobs that need a positive Labour Market Impact Assessment (LMIA) prior to applying for a Work Permit.
Within the majority of cases, employers need to apply for a LMIA, also known as Labour Market Impact Assessment before they can hire foreign workers (see exemptions including NAFTA and GATS). In order to get a positive LMIA, a Canadian employer needs to prove that there is no Canadian or permanent resident worker available to finish the job in question and a foreign worker is thus required.
Labour Market Impact Assessment (LMIA) applications should demonstrate the following:
- Efforts/attempts were made to recruit available permanent residents/Canadian citizens
- Wages given for the position are steady with the prevailing wage rate paid to Canadians/permanent residents in the same occupation in the region
- The working conditions for the job/occupation meets the current provincial labour market standards
- Any possible benefits that hiring a foreign worker could potentially bring to the Canadian labour market. For example; the creation of new jobs or the transfer of skills and knowledge
- Transition plans will be needed for high-wage positions in which employers need to demonstrate increased efforts to hire Canadians in the long-term.
The positive Labour Market Impact Assessment is given to the foreign worker to submit with his/her application for a work permit, which is usually issued for 1 year if granted.
Labour Market Impact Assessments are overseen by ESDC (Employment and Social Development Canada) and have a correlated application fee of $1,000 for every single temporary foreign worker position applied for.
For highest-demand, highest paid and shortest duration occupations, there are shorter processing times of 10 days available. For example; skilled trades within top 10% of pay bracket and for positions that are less than 120 days.
Furthermore, the Labour Market Impact Assessment process is distinct. This depends on whether the targeted employee is classified as either “high-wage” or “low-wage”. Nonpermanent foreign workers that are being paid bellow the provincial/territorial median wage are considered low-wage, while those being paid at or above are considered high-wage. Certain particular provisions apply, depending on whether a prospective employee is classified as either “high-wage” or “low-wage”.
High-Wage Workers
Note that employers who are seeking to hire high-wage workers need to submit transition plans along with their LMIA (Labour Market Impact Assessment) application to make sure that they are taking steps to lessen their reliance on temporary foreign workers over time. Those who are high-wage workers are earning over the median hourly wage for a given occupation in specified region.
Additionally, the transition plans are created to make sure that employers seeking foreign workers are fulfilling the purpose of the program. This entails that they are utilizing the program as a last and limited resort to address instant labour needs on a temporary basis when qualified Canadians are not available, making sure that Canadians are provided the first chance at available jobs.
Particular occupations in Quebec are “facilitated" which means that local recruitment efforts do not require to be performed by employers as part of their applications to hire temporary foreign workers for any of the facilitated occupations.
Low-Wage Workers
Note that employers who are looking to hire low-wage workers do not require to submit transition plans with their LMIA (Labour Market Impact Assessment) . However, they need to follow a distinct set of guidelines.
In order to restrict access to the TFWP (Temporary Foreign Worker Program), while making sure that Canadians are always considered primary for available jobs, the Government of Canada has introduced a cap to reduce the number of low-wage temporary foreign workers that a business can hire. Additionally, particular low-wage occupations may be rejected for LMIA processing. Employers with more than 10 employees applying for a new LMIA are subject to a cap of 10% on the proportion of their workforce that can include low-wage temporary foreign workers. This cap will be phased in over 2015 and 2016 in order to give employers who are above the 10 percent cap time to transition and modify accordingly.
Employers offering a wage that is lower than the provincial/territorial median hourly wage need to:
- Pay for round-trip transportation (for the temporary foreign worker);
- Make sure affordable housing is accessible;
- Pay for private health insurance up until workers are qualified for provincial health coverage;
- Enroll the temporary foreign worker with the provincial or territorial workplace safety board; and
- Give an employer-employee contract.
To elaborate, the Temporary Foreign Worker Program utilizes the latest Labour Force Survey results for the unemployment rates in regions across Canada (As of April 30, 2015). These rates decides which regions are qualified for employers to submit LMIAs (Labour Market Impact Assessments) for low-wage or lower skilled occupations in the Accommodation and Food Services sector and the Retail Trade sector. Labour Market Impact Assessment applications for these sectors are not going to be processed in economic regions where the unemployment rate is above 6%.
As called for by the Government of the Northwest Territories and due to its distinctive labour market conditions, applications in these sectors for positions situated in Yellowknife will be welcomed for processing.
Expediting an LMIA
In the following occupational categories, LMIAs will be given within a 10-business-day service standard for workers:
- Occupations that are highest-demand
- Occupations that are highest-paid
- Occupations that are of shortest-duration
Highest-demand Occupations
For this category, the 10-day service standard is limited to skilled trades positions where the wage provided is at or above the provincial/territorial median wage. These positions are extremely crucial to the evolution of major infrastructure and natural resource extraction projects, and for that reason considered vital to Canadian economic growth.
Highest-paid Occupations
For this category, the 10-day service standard is limited to employers employing temporary foreign workers in the highest-paid occupations that provides wages in the top 10 percent of wages gained by Canadians in a given province or territory where the job is situated. This wage level shows that a temporary foreign worker is the highest-skilled in their occupation, and that those skills are very hard to find within Canadian labour market.
Shortest-duration Occupations
For this category, the 10-day service standard is limited to employers who are asking for temporary foreign workers for a short duration, defined as less then 120 calendar days, in any occupation where the wage given is at or above the provincial or territorial median wage. Positions decreasing under this category involve those associated to repairs, manufacturing equipment and warranting work.
Once obtained a positive LMIA, the employer needs to send a copy to their identified foreign worker. The positive LMIA has to be included in the worker’s application for a Temporary Work Permit.
For one or numerous employees, a single LMIA can be issued. The LMIA will only be issued to employees who will be filling exact positions as identified by the Canadian National Occupation Classification, in the case of numerous employees.
There are a number of instances where an employer may be free from the requirement to secure a LMIA. To learn more, please visit the LMIA Exempt Work Permit page.
Advertising Requirements
Keep in mind that employers need to advertise every job vacancies across the Canadian job market for a minimum of 4 weeks prior to applying for a Labour Market Impact Assessments. Towards this end, employers needs to prove that they have utilized at least 2 other recruitment methods as well as to having posted an advertisement on the Canada Job Bank. To add, employers need to centre advertising efforts on groups of Canadians who are under-represented. For example: Persons with disabilities or First Nations.
Employers who are desiring to hire a temporary foreign worker to Canada need to pay CAD $1,000 of a processing fee for each request for a Labour Market Impact Assessment.
Furthermore, English and French are the only two languages that can be determined as job requirements, both for LMIAs and for job vacancy advertisements, except if the employer can give evidence that another language is otherwise needed for the position.