LMIA (Labor Market Impact Assessment)

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Prior to recruiting overseas workers, most firms must obtain government approval. This approval comes in what is called the LMIA (Labor Market Impact Assessment) and is issued by ESDC (the Employment and Social Development Canada).
A local company or employer seems unable to fill the job with local talent. The most common way to demonstrate this is to post job openings in Canada and make an effort to recruit Canadian citizens or permanent residents or showing that local candidates are unqualified for the position.
After applying for the LMIA, Canadian employers must wait for approval. The LMIA (popularly known as a confirmation letter) affirms the requirement to hire foreign workers. Prospective employees can apply for a permit to enter and work in Canada once their employers have sent them a copy of the LMIA.
Thus, the basic requirements for a temporary foreign worker to secure employment in Canada are to provide an offer of employment document, a job contract, a copy of the positive LMIA.

The 2021 new changes for the Labor Market Impact Assessment

In 2021, Canada introduced some minor adjustments to the LMIA system! Jobs will be split into only two groups under the revised LMIA framework: low-wage and high-wage jobs. An employment opportunity will be classified as high-wage when the pay is equal to or greater than the median salary in the jurisdiction (province or territory) where the foreign employee will be based. One will fall in the low-wage category if the wage is less than the median pay in the jurisdiction.
The filing fee for a Labor Market Impact Assessment request has increased to $1000 per job from $275.

LMIA Requirements for recruiting High-Wage foreign employee

A Canadian employer wanting to engage a temporary foreign worker at a pay above or equal to the provincial (territorial) median hourly salary must have a pre-arranged transition plan in place when recruiting a high-paid foreign worker.
LMIA transition Plans are Schedule C documents attached to applications for such assessments. Such plans outline the obligations that employers recruiting foreign talents have agreed to make in relation to the profession and region for which foreign workers are being sought.

LMIA requirements for recruiting a low-wage foreign employee

You do not need a Transition Plan when bringing in a low-wage worker from abroad. However, an employer engaging a low-wage worker (unlike a high-wage worker) is subject to a quota on the number of foreign employees they can hire. Low-wage workers to import cannot exceed 10% of the employer's total workforce.

LMIA Exemptions

Only a positive LMIA allows an employer in Canada to recruit a foreign citizen. However, in some situations, Canada waives the requirement for companies to get an LMIA before employing foreign talent temporarily.
Here're some examples of immigration streams where Canada has waived the LMIA requirement.

International Accords

Canada is has signed several international agreements making it easier for some foreigners to enter and work in the country. The following are some examples of treaties that may allow someone to be exempt from the LMIA:

  • Canada Columbia Free Trade Agreement
  • NAFTA (North American Free Trade Agreement)
  • FTA between Canada and Chile

Self-employed applicants (Business owners)

If you want to immigrate to Canada to create and operate a business, the authorities may be able to exclude you from the Labor market impact requirement.
Furthermore, a foreigner can only be granted an LMIA exemption if they can demonstrate that the organization, they intend to start in Canada would have a significant economic impact on the country. They must also show that they will only be working in Canada for a limited time.
An LMIA waiver can be the ideal option for an entrepreneur with a short-term business idea. IRCC may consider you for an LMIA waiver if you are a self-employed immigrant who's already filed for PR residency status.

International Accords

Canada is has signed several international agreements making it easier for some foreigners to enter and work in the country. The following are some examples of treaties that may allow someone to be exempt from the LMIA:

  • Canada Columbia Free Trade Agreement
  • NAFTA (North American Free Trade Agreement)
  • FTA between Canada and Chile

Self-employed applicants (Business owners)

If you want to immigrate to Canada to create and operate a business, the authorities may be able to exclude you from the Labor market impact requirement.
Furthermore, a foreigner can only be granted an LMIA exemption if they can demonstrate that the organization, they intend to start in Canada would have a significant economic impact on the country. They must also show that they will only be working in Canada for a limited time.
An LMIA waiver can be the ideal option for an entrepreneur with a short-term business idea. IRCC may consider you for an LMIA waiver if you are a self-employed immigrant who's already filed for PR residency status.

Intra-transfers

If you're a foreigner working in Canada on a short intra-company exchange, you may qualify for an LMIA exemption. Nevertheless, you will only be eligible for the waiver if you're moving to work in Canada in an executive or managerial role or have some specialized skills.
Furthermore, intra-company job transfers must be for workers of international companies with qualifying links to Canadian businesses.

Dependent family members of foreign workers

HOWEVER, this LMIA waiver does not apply to a spouse or employee under the International Exchange Program.

International exchange programs

The country participates in several international worker/student exchange programs for young people. Among these programs are:

  • Teacher-exchange programs
  • IEC-International Exchange Canada
  • YPP-Young professionals’ program
  • Student co-operation programs

Workers who are fluent in French

The IRCC has a scheme that makes it simple for french speakers to work in Canada. The benefit of this program (also known as Mobilite Francophone) is that it does not require an LMIA when looking for temporary work in Canada. A candidate must meet the following criteria to qualify for the Mobility Francophone Labor market impact exemption:

  • File for a work program at an immigration agency outside Canada
  • be seeking for work in Canada in a trade that falls under the National Occupation Classification skill levels A, B, or O
  • have a good command of the French language
  • be intending to come to Canada to work in any province other than Quebec.

Workers in the religious field

The sort of employment a job seeker intends to perform in Canada typically determines the requirement for a Positive LMIA. IRCC may not need you to have a positive LMIA if your significant responsibilities are spiritual.

Educators

An LMIA requirement is often waived for a guest lecture, researcher, and visiting professor.

Provincial exemptions

For foreign workers who have previously been nominated and offered a place by a province or territory, IRCC may disregard the LMIA requirement.
An LMIA, however, does not free you from the requirement to meet all other visa requirements. Any Labor Market Impact Assessment program demands that an applicant obtain a work permit to work in Canada lawfully.

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