Labour Market Impact Assessment (LMIA) Demystified

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Canadian employers that are looking to fill specific roles have the option of recruiting foreign workers. This option is based on the requisite that no Canadian worker is qualified or suitable for the position. Should an employer choose to recruit a foreign worker, they are required to complete the necessary documentation to support their requirements. Their application will be assessed accordingly, and in the event of a positive outcome, they are able to hire a foreign worker.

A Labour Market Impact Assessment (LMIA) is an official document that an employer in Canada may require before hiring a temporary worker. A positive LMIA is verification that no permanent resident can undertake the role, and sometimes referred to as a confirmation letter. Its overall purpose is to protect Canada’s domestic job workplace, as well as foreign temporary workers.
There are a set of specific conditions that must be adhered to for a positive LMIA. The role in question must be advertised by employers to permanent residents for a period of at least four weeks prior to application within the Canadian job bank. Additionally, employers must also demonstrate at least two other alternative recruitment methods. When satisfied that the role cannot be filled by a regional Canadian worker, they are then able to begin the process of hiring a foreign worker.
Labour shortages are a real phenomenon within Canada, so providing that you can justify your requirement for a foreign worker, you should complete the process with no issue. It might be that a particular role requires a specific set of skills that is lacked by Canadian workers. Alternatively, the role may require a certain demographic, cultural understanding or specific language that makes it harder to fulfil. In any of these instances, you are far more likely to succeed with your application.
If an employee requires a LMIA, they must apply for it. In support of their application, they will also require a letter outlining the job offer, a contract, a copy of the LMIA and the LMIA number.
A job offer letter is provided by a Canadian employer when a position has been formally offered to them. It is much less detailed than a contract, and explains the details of the specific job in full including employee pay and deductions from pay, job duties and conditions of employment such as hours of work. It is important to note that an offer of employment differs from a job offer letter. If an employer does not require a LMIA for a role, they will follow an alternative process under the International Mobility Program.
The LMIA process is highly detailed for employers, and requires a great deal of documentation and numerical statistics. The information will be sent to Employment and Social Development Canada (ESDC) who will assess the application based on merit. Employers must include specific information including the number of Canadian applicants that applied for the position, any offers of employment that were made, and the number of applicants that were unqualified and unsuccessful. Employers must also provide a written description of the reasons why the Canadian applicants were not suitable for the role, and verify that they have no intention of terminating or minimising the hours of a current worker. With English and French as the main languages spoken in Canada, applicants that utilise an alternative first language will not be deemed suitable.

The ESDC will assess the application based on the following criteria:

  • The employer must demonstrate that they have made reasonable efforts to recruit Canadian residents in the first instance.
  • Under-represented groups must have been considered in the first instance.
  • The employment of a foreign worker must help create or retain jobs in Canada.
  • The employer should be providing a wage that is consistent with local averages.
  • The employer should not be engaged in a job dispute of any nature.

In some circumstances, there is the option of an interview with the ESDC. Although this is not mandatory, many employers choose to utilise the interview to ask further questions about the process. Employers should ensure that they have studied their application and prepared for the interview appropriately, as this will ensure that any potential discrepancies are avoided. Although questions are highly variable, it is likely that they will reiterate much of the information from the written application. As an employer, it is your opportunity to present yourself in a positive light to the ESDC, and assure them that you will remain compliant with LMIA guidelines.
There are further things to consider in the event of a positive LMIA. If the employee is successful with their application, the offer is only relevant to the role they have applied for. A positive LMIA does not enable them to seek additional or alternative work in the same or another region. In the event of a further job offer, a new LMIA should be obtained.
The processing time of the LMIA is difficult to decipher, and can range from two weeks to several months. Occasionally, there are chronic shortages within a particular profession, which means that a more rapid processing time is likely. You can expect a quicker processing time if recruiting for any of the following:

  • High demand occupations and skilled trades (such as IT and technical experts).
  • Highest paid occupations (top 10%) (such as medical staff, doctors, dentists and physicians).
  • Short duration work periods of 120 days or less.

When you are aware of the common pitfalls and mistakes made within LMIA applications, the process will be a lot more seamless. We wholly believe that the LMIA process is more straightforward and primed for success when expert guidance is sought.
VG & Partners are a leading global migration advisory firm that connect employers with foreign workers. With 20 years of industry expertise behind us, we are able to provide a one-stop-shop to deliver skilled candidates across Europe and Canada.
We have helped hundreds of employers receive foreign workers via the LMIA process. With expertise in connecting foreign workers with employers, we are able to guide you through the process from start to finish to give you the greatest chance of success. We can answer any questions you might have, identify your recruitment niche and predict your chances of receiving a positive LMIA.
If you are currently seeking foreign workers, please get in touch with us today.

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