Looking to increase your Express Entry points with a job offer? Discover how a valid LMIA-backed offer can add 50 to 200 points to your CRS score and help you fast-track your permanent residency in Canada.
Read on to explore how the LMIA works and why it’s a game-changer for your immigration journey.
Table of Contents
What is LMIA in Canada?
In Canada, a Labour Market Impact Assessment (LMIA) is a crucial document Canadian employers need before hiring foreign workers.
Whenever an employer in Canada hires a foreign worker -that is not a Canadian Citizen or a Permanent Residence holder, the employer should first obtain approval from the Ministry of Labour to proceed with the hiring.
It is issued by Employment and Social Development Canada (ESDC) and proves that hiring a foreign worker won’t negatively affect the Canadian job market.
A positive LMIA shows that no Canadian citizen or permanent resident can fill a specific job position, allowing the employer to recruit from abroad.
Employers must demonstrate that they’ve made substantial efforts to hire locally before applying for an LMIA, including posting the job in Canada for several weeks.
Once a positive LMIA is obtained, foreign workers can apply for a work permit, which is essential for them to work in Canada legally.
What is the General Process for an LMIA?
Stage 1: Identify the vacancy, job duties and assigned salary.
Stage 2: Advertisement process mentioned above. It should be for three months and be published on three different job sites.
Stage 3: As a result of the advertisement exercise, the employer will shortlist those who meet the language and the occupation-specific requirement. Interview the selected candidates. Overall, a genuine effort to find a suitable candidate is observed throughout the process.
Stage 4: Then, if no suitable candidate is found, an LMIA request is completed and submitted to the Employment and Social Development Canada (ESDC).
Stage 5: Once the ESDC reviews the request and approves it (a positive LMIA), the employer searches for candidates overseas and offers the job to the foreign worker.
Stage 6: Finally, the work permit application for the selected foreign worker is then processed. Once an LMIA has been issued, the employer provides a copy of the confirmation letter to each temporary foreign worker and directs them to apply for a Canadian work permit.
How to Get LMIA Work Permit: Step-by-Step
To get an LMIA work permit in Canada, follow these simple steps:
1. Secure a Job Offer: The first step is to receive a valid job offer from a Canadian employer. The employer must demonstrate that no Canadian citizens or permanent residents can fill the role.
2. LMIA Application by Employer: Your employer applies for the Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC). They must provide proof of recruitment efforts and pay a processing fee of CAD 1,000.
3. Wait for LMIA Decision: If the ESDC determines that hiring a foreign worker will not negatively affect the Canadian labour market, a positive LMIA will be issued. Depending on the job type and stream, this process can take anywhere from 2 weeks to a few months.
4. Apply for a Work Permit: Once the LMIA is approved, the employer provides the LMIA number, and you can apply for your work permit. You must submit your LMIA, job offer letter, and other documents.
5. Receive Work Permit: After submitting your application, you may be required to attend an interview or provide biometrics. If approved, you will receive your work permit, which allows you to work in Canada under the conditions specified in the licence.
By following these steps carefully, you’ll be on your way to obtaining your LMIA-based work permit and starting your job in Canada.
To Apply for a Work Permit, a Worker Needs
- a job offer letter
- a contract
- a copy of the LMIA, and
- the LMIA number
How to Draft a Job Posting for Your LMIA Application
To draft a job posting for your LMIA application, you must meet specific government requirements to demonstrate your efforts to hire a Canadian or permanent resident before considering foreign workers.
1. Include Key Job Details: Clearly outline the job title, duties, required qualifications, salary, and working conditions. Be specific about the skills and experience needed for the role to attract suitable candidates.
2. Post in the Right Places: You must advertise the job on the Government of Canada’s Job Bank or an equivalent provincial/territorial job board. Use at least two other recruitment methods relevant to the job, such as local newspapers, job websites, or industry-specific platforms.
3. Minimum Posting Duration: The job must be advertised for at least 30 days within the three months before submitting your LMIA application. Ensure one of your recruitment efforts remains active until the LMIA decision is made.
4. Maintain Records: Keep detailed records of your recruitment efforts, including copies of job ads, the platforms used, and responses from potential applicants. This will serve as proof of your compliance with the advertising requirements.
5. Be Transparent: Make sure your ad is transparent about the application process, including how and where candidates can apply. Specify if the position is temporary and list any required certifications or licences.
These steps will help ensure your LMIA application process runs smoothly and meets legal requirements.
How to Advertise Your Position for LMIA Application
When advertising a job for an LMIA application, Canadian employers must follow specific steps and requirements to ensure compliance with Employment and Social Development Canada (ESDC) regulations.
1. Choose the Right Platforms: You must post your job on the Government of Canada’s Job Bank or a provincial equivalent, which is mandatory for all LMIA applications. In addition, you need to advertise through at least two other recruitment methods:
Local newspapers, online job boards, or industry-specific websites.
2. Meet the 30-day Requirement: The job advertisement must remain active for at least 30 days within three months before submitting the LMIA application. If you miss this window, you must re-advertise for another 30 days.
3. Include Essential Details: The job posting must clearly outline the job title, salary (which must meet or exceed the provincial median wage), job location, job duties, and qualifications required. Additionally, include how applicants can apply, ensuring that any Canadian citizen or permanent resident has the opportunity to use it first.
4. Document Your Efforts: Keep detailed records of all advertising efforts, including copies of the ads, where they were posted, and the recruitment process results. You must provide this documentation to ESDC to prove your efforts to recruit Canadian workers.
5. Job Match Requirement: Use the Job Match feature to invite suitable candidates based on their ratings for the Job Bank posting. This is particularly important for high-wage positions (invite candidates with 4+ stars) and low-wage positions (invite those with 2+ stars).
By following these steps and ensuring that your recruitment process is well-documented and meets the advertising requirements, you’ll be better prepared for a successful LMIA application.
How to Demonstrate Talent Shortage for Your LMIA Application
To demonstrate a talent shortage for your LMIA application, you must provide solid evidence that no qualified Canadian citizens or permanent residents are available for the job.
1. Detailed Recruitment Efforts: You must show that you’ve advertised the job in Canada for at least four weeks using various channels such as the Job Bank, online job boards, or industry-specific websites. The goal is to demonstrate that your recruitment efforts targeted Canadians but did not yield suitable candidates.
2. Proof of Advertising: In addition to advertising, you must keep records of your efforts, including job postings, resumes received, and interview notes. Ensure to include details like when and where the job was posted and proof of ongoing recruitment.
3. Justifying the Need for Foreign Workers: If, after extensive recruitment, you still cannot find a suitable candidate, you can explain how the foreign worker possesses specific skills that are either rare or unavailable locally. This could include specialised training or unique experience that Canadian workers may lack.
4. Wages and Working Conditions: To ensure fairness, the offered wage must meet or exceed the prevailing wage for that occupation in the region. This shows that you’re not underpaying foreign workers, which could otherwise displace Canadian talent.
5. Provide Supporting Documentation: Include documents such as job descriptions, recruitment records, and any communication with potential Canadian candidates to demonstrate further your efforts to hire locally.
Following these steps increases the likelihood of demonstrating a genuine talent shortage, a crucial requirement for a successful LMIA application.
How to Submit Your LMIA Application
To submit your LMIA (Labour Market Impact Assessment) application, follow these steps:
1. Create a Job Bank Account: First, you must create a Job Bank account as an employer. This account is mandatory to access the LMIA Online Portal, where you’ll submit your application. Both the employer and any third-party representatives must have valid Job Bank accounts.
2. Gather Required Documents: Ensure you have all necessary documents before applying. These typically include:
- Proof of recruitment efforts (such as job advertisements).
- Business-related documents like tax filings (e.g., T2 forms).
- If applying for high-wage streams, include a transition plan.
3. Complete the Application in the LMIA Online Portal: Once logged in, select the option to create a new LMIA application. The system will guide you through the process with step-by-step questions about the job, recruitment, and your business. Ensure all information is accurate before submitting.
4. Upload Supporting Documents: Upload all required documents, including recruitment evidence and any additional supporting materials, such as an explanation letter, if the business name or other relevant information is incorrect.
5. Pay the Application Fee: After completing the application, you’ll be prompted to pay the mandatory fee, CAD 1,000 per position. Once the payment is processed, your application will enter the review queue.
6. Wait for Processing: Processing times vary depending on the LMIA stream. For example, the Global Talent Stream is typically processed within two weeks, while other streams, such as high-wage or low-wage, may take up to 2-3 months.
After submitting, you can track the status of your application online through the LMIA portal. Once approved, you’ll receive a confirmation letter, which the foreign worker can use to apply for a work permit.
Business Legitimacy Documents
When submitting an LMIA application, one critical requirement is proving your business’s legitimacy.
This helps Employment and Social Development Canada (ESDC) assess whether your company is a genuine entity capable of fulfilling the job offer to a foreign worker.
To demonstrate business legitimacy, employers are typically required to provide a variety of documents, such as:
1. Business licences: Proof that the company is legally registered to operate in Canada.
2. T2 Schedule 100 and 125 forms: These documents submitted to the CRA showcase your company’s balance sheet and other financial details.
3. T4 Summary of Remuneration Paid: This helps prove that your business has been paying employees.
4. Financial statements: Detailed records demonstrating the company’s financial stability.
5. Payroll records: show that the company has employees and complies with local labour laws.
Providing these documents helps establish that your business is actively engaged in providing goods or services and has the financial capacity to meet the terms of employment.
Transition Plan
A Transition Plan is essential for Canadian employers seeking to hire temporary foreign workers (TFWs) in high-wage positions through the LMIA process.
The plan outlines the employer’s specific actions to recruit, retain, and train Canadian citizens and permanent residents, reducing reliance on TFWs over time.
Employers must include at least three activities to strengthen the domestic workforce and one additional activity focusing on underrepresented groups such as new immigrants or Indigenous peoples.
Alternatively, they may support the foreign worker’s path to permanent residency as part of the transition plan.
Each activity in the plan should be well-defined, with clear goals, timelines, and measurable outcomes.
For example, employers offer on-the-job training, partner with educational institutions, or attend job fairs to attract local talent.
The Transition Plan remains in effect throughout the worker’s employment, and employers must actively work toward fulfilling their commitments during this period.
LMIA Processing Time
LMIA processing times in 2024 can vary depending on the stream under which the application is submitted.
The Global Talent Stream is typically the fastest, averaging 7-8 business days, making it ideal for employers in tech or specialised industries.
The Agricultural Stream takes 13-19 business days, while the Seasonal Agricultural Worker Program usually takes 5-7 business days.
For more general streams, like the High-Wage Stream, expect around 51-52 business days, and the Low-Wage Stream averages 54-57 business days. The Permanent Residence Stream tends to be the slowest, taking approximately 85-86 business days.
Processing times are updated monthly, reflecting current workloads and demand.
Employers are encouraged to start the LMIA process as early as possible, especially in industries with time-sensitive needs like agriculture, to avoid delays that could impact operations.
Also, It is essential to know that the process includes an advertisement procedure for the vacant job. The advertisement must meet specific requirements in terms of scope and timeframe of three months and be published at three different job boards.
Also, it should be followed by a complete submission of the application to the Ministry of labour requesting a positive LMIA.
In the end, the whole processing time for an LMIA, including the advertisement, shortlisting, interviewing, and application is expected to take between four to six months.
How to Prepare for Your Interview with the ESDC Officer for Your LMIA Application
Preparing for an interview with an ESDC officer as part of your LMIA application involves being well-versed in the details of your business, the job position, and your recruitment efforts to hire Canadian workers.
1. Review Your LMIA Application: Be familiar with every part of your application, including the job ad, recruitment methods, and why Canadian applicants were not selected. You may be asked about the exact number of applicants and why they weren’t hired.
2. Prepare for Business-Specific Questions: The officer may inquire about your business operations, including the nature of the job you are offering and how the foreign worker fits into your company’s overall growth strategy.
Be ready to explain why you need a foreign worker and how this will benefit your business and the Canadian economy.
3. Be Clear and Consistent: Officers might ask the same questions differently to ensure consistency in your answers. Focus on facts about foreign workers’ job requirements and qualifications, avoiding subjective comments like “better attitude” or “preference.”
4. Recruitment Process: Have detailed notes on your recruitment efforts and the qualifications of each candidate interviewed. Be ready to explain how the Canadian candidates didn’t meet the job requirements.
5. Plan for Integration: Be prepared to answer questions about how you will help the foreign worker integrate into your workforce and how you plan to transition to hiring more Canadians in the future.
By preparing detailed answers and being familiar with all aspects of your application, you can confidently navigate your interview with the ESDC officer.
How to Support Your Foreign Workers’ Application to Work in Canada
To support your foreign worker’s application to work in Canada, there are several essential steps you can take:
1. Provide a Detailed Job Offer: Ensure the job offer includes precise details about the position, including job title, duties, salary, and working conditions. This job offer is a crucial document your worker will need when applying for a work permit.
2. Assist with the LMIA Process: If your worker requires a Labour Market Impact Assessment (LMIA), you must apply for one. This involves demonstrating to Employment and Social Development Canada (ESDC) that no Canadian or permanent resident can fill the job. Once approved, provide the LMIA number to the worker, who will need it to apply for their work permit.
3. Support the Work Permit Application: Foreign workers need an employer-specific work permit (tied to your job offer) or an open work permit. Ensure they have all the necessary documentation, such as the LMIA (if applicable) and the job offer letter. You can guide them through the application process by providing resources and answering any questions they have.
4. Settlement Assistance: Offer support with settlement services, such as helping the worker find accommodation and navigate healthcare. During their initial period in Canada, you may also need to cover private health insurance until they become eligible for provincial healthcare.
5. Ensure Compliance with Labor Standards: As an employer, it’s essential to ensure that your foreign worker’s rights are protected. This includes providing fair wages, safe working conditions, and equal treatment under Canadian labour laws.
By taking these steps, you can make the process smoother for your foreign workers and help them successfully start their employment in Canada.
The Costs of Your LMIA Application
Employers should be prepared for several costs when applying for a labour market impact assessment (LMIA) in Canada. First, the LMIA application fee is CAD 1,000 per position requested and non-refundable.
In addition, advertisement costs can vary depending on where the job is posted. Employers are required to advertise the position for at least 30 days on multiple platforms, which may involve free or paid services.
Work permit fees for foreign workers also exist, typically including a CAD 155 application fee and additional costs like biometrics or medical exams.
Finally, many employers hire immigration consultants or lawyers to assist with the process, and legal fees can range from CAD 3,000 to CAD 7,000.
Temporary refusal to process LMIA applications for low-wage positions in Montréal
Starting on September 3, 2024, and lasting for six months, the Canadian government has temporarily halted the processing of new LMIA applications for low-wage positions in the Montréal economic region.
This suspension applies to job offers with wages below $27.47/hour, the median hourly wage in Quebec.
This freeze aims to ensure the TFWP is used appropriately and only as a last resort when no qualified Canadian workers are available.
There are a few key exceptions to this freeze. Applications submitted before September 3, 2024, jobs offering wages at or above the median salary, and specific sectors, such as agriculture, construction, food processing, education, and health services, are exempt.
This suspension does not affect employers in these industries or pay higher wages.
This temporary measure reflects ongoing adjustments in the labour market. It is part of the government’s efforts to protect Canadian workers while allowing the TFWP to remain a critical tool for employers needing labour.
Approval Rate for LMIA in 2024
The approval rate for LMIA applications in 2024 is generally high, especially for established businesses.
Companies with a solid operational history typically enjoy a 95% success rate. However, the success rate ranges between 65% and 85% for businesses operating for less than a year.
The primary reasons for LMIA application rejections include improper advertising efforts or failure to meet wage and employment standards.
To improve your chances of success, you must rigorously follow advertising guidelines, ensure the offered wage meets the required standards, and consult immigration experts if needed.
Experienced companies often see higher approval rates by applying these standards early on.
How to Identify the Correct NOC for Your LMIA Application
To identify the correct National Occupational Classification (NOC) code for your LMIA application, follow these steps:
Search the NOC System: Start by visiting the NOC website (NOC 2021) and search by your job title or keywords related to the position you’re hiring for. This will provide a list of relevant codes.
Review Job Descriptions: Examine the lead statement and job duties listed under each potential NOC code. It’s essential to ensure that your job’s responsibilities and qualifications closely match those described in the NOC.
Consider Local Labor Market Conditions: Check the labour market information for your region and specific job classification. This will help you determine if there’s a local talent shortage and ensure that your job posting aligns with market conditions.
Verify Wage Requirements: Ensure that the wage offered matches or exceeds the median salary for the selected NOC in your location. Offering the appropriate wage is critical for LMIA approval.
Confirm Candidate Eligibility: Ensure that the foreign worker meets the employment requirements for the selected NOC, such as education, skills, or experience.
By following these steps, you can identify the most appropriate NOC code for your LMIA application, increasing your chances of success.
What is Expected From the Employer?
The employer is expected to prove Business legitimacy by providing proper company documentation such as tax returns (Notice of Assessment), employees payroll, Records of Employment (ROEs) and general company registration and operation documents.
The employer is also expected to submit evidence of recruitment efforts to hire a Canadian Citizen or a Permanent Residence.
The EDSC will evaluate the LMIA application based on:
- Are there any Canadians that are willing to do the job?
- Is there enough effort to find a Canadian or Permanent Residence to do the job?
- Will the hiring of foreign workers create local jobs in the future?
- Is the employer paying the employee fairly?
- Are the conditions acceptable and safe?
And finally, meet the minimum wage requirements.
Frequently Asked Questions about LMIA
Who Will Pay for LMIA in Canada?
In Canada, the employer is responsible for covering the costs associated with an LMIA. The LMIA application fee is CAD 1,000 per worker, which is non-refundable even if the application is denied.
Employers are prohibited by law from passing these costs on to the foreign worker, whether directly or indirectly. This includes recruitment, job orientation, and other associated costs.
In some cases, additional fees, such as work permit fees (which range from CAD 480 to $550), may also apply if the employer covers them for the worker.
Failure to comply with these rules can result in penalties, including potential bans from the Temporary Foreign Worker Program (TFWP).
Is LMIA Free?
No, an LMIA is not free. Employers in Canada must pay a non-refundable application fee of CAD 1,000 per foreign worker they wish to hire under the Temporary Foreign Worker Program (TFWP).
This fee covers the administrative costs of processing the LMIA application. Employers are legally prohibited from passing these costs on to foreign workers.
This means the employer is fully responsible for the fees, including any recruitment or legal costs associated with the application. If the LMIA is rejected, the payment will not be refunded.
How Can I Get an LMIA From an Employer?
Getting an LMIA from a Canadian employer starts with the employer. They must demonstrate that they could not find a qualified Canadian or permanent resident for the job.
The employer does this by posting the job ad in multiple locations, such as the Canada Job Bank, for at least 28 days and interviewing Canadian applicants.
If no suitable candidates are found, the employer can apply for an LMIA through Employment and Social Development Canada (ESDC), providing evidence of their recruitment efforts and explaining why a foreign worker is needed.
Once the LMIA is approved, the employer gives you a copy of the positive LMIA, which you need to apply for a Canadian work permit. Depending on the job type and the urgency of the position, the process can take a few weeks to several months.
What About Owner-Operator LMIA?
The Owner-Operator LMIA program was once a popular route for foreign entrepreneurs to start or purchase a business in Canada and manage it while obtaining a work permit. However, this program was discontinued in April 2021.
Under the original Owner-Operator LMIA, entrepreneurs could apply for a work permit without advertising the position, but this exemption no longer exists.
Business owners must go through the same LMIA process as other employers, including meeting advertising and recruitment requirements.
Although the original program is no longer available, entrepreneurs still have alternative pathways to immigrate to Canada.
Options like the Entrepreneur LMIA Program and IMP C11 Work Permit allow business owners to establish or expand their businesses in Canada without needing an LMIA.
These alternatives allow foreign entrepreneurs to continue contributing to the Canadian economy while pursuing immigration opportunities.
What Happens if LMIA is Approved?
When an LMIA is approved, it means that Employment and Social Development Canada (ESDC) has determined that no Canadian citizens or permanent residents can fill the job, allowing the employer to hire a foreign worker.
Once the employer receives a positive LMIA, they provide the foreign worker with the LMIA confirmation letter, the LMIA number, and a formal job offer.
The worker can then use these documents to apply for a work permit from within Canada or their home country.
The following steps involve the foreign worker submitting their work permit application, which may require additional documents like medical exams or police clearances.
Once the work permit is approved, the worker can travel to Canada, and upon arrival, they will receive their official work permit at the port of entry.
An approved LMIA can also benefit Express Entry candidates by adding up to 200 additional points to their Comprehensive Ranking System (CRS) score, increasing their chances of receiving an invitation to apply for permanent residency.
How Long is the LMIA Work Permit Valid For?
The duration of an LMIA work permit typically depends on the job and employer’s needs. In most cases, a work permit based on a positive LMIA is valid for up to 2 years.
However, specific streams or job categories, like seasonal agricultural work, may have shorter durations, such as 120 or 270 days.
It’s important to note that the LMIA itself is valid for six months from the date of issuance. During this time, the foreign worker must apply for a work permit. Once issued, the work permit duration will be aligned with the needs specified in the LMIA.
What if my foreign worker quits or underperforms?
If your foreign worker quits or underperforms, acting quickly to remain compliant with Canadian employment laws is essential. As an employer, you must report any significant changes, such as a worker quitting, to ESDC.
You are also responsible for maintaining proper documentation and providing updates on the worker’s status, including if the worker leaves before their contract ends or significantly underperforms.
If a foreign worker leaves, the employer may need to apply for a new LMIA to replace the worker. However, if the worker underperforms, you may terminate their employment, following the same process as any other employee in Canada.
You must still comply with the terms in the positive LMIA, such as ensuring the wages and conditions remain aligned with the initial offer.
Maintaining detailed records and adhering to the legal requirements will help ensure your company remains in good standing with the TFWP.
How many points are there for LMIA under the Express Entry program?
When applying for permanent residency through the Express Entry system, having a valid job offer supported by a positive LMIA can significantly boost your CRS score.
If your job offer falls under NOC TEER categories 0, 1, 2, or 3, you can receive 50 points. However, if the job is a senior management role under NOC 00 (such as executives or legislators), you can earn 200 points.
These additional points can greatly improve your chances of receiving an Invitation to Apply (ITA) for permanent residency.
It’s important to ensure that your job offer meets all the criteria, including being full-time, continuous, and valid for at least one year after obtaining permanent residency.
Conclusion
Understanding the role of LMIA in the Express Entry process can significantly boost your CRS score and bring you closer to permanent residency in Canada.
Do you have questions or need help with your LMIA application? Leave a comment below or reach out—your feedback matters!
