LMIA Work Permit

When newcomers arrive in the country, there is always the question about finding a job in Canada.
It is essential to know that there are different work permits in Canada: Work permits with an LMIA (Labour Market Impact Assessment) and Work permits that don’t require an LMIA.
LMIA is a letter issued by the Labour Office of Canada stating that hiring a foreign won’t negatively affect the workforce. To obtain an LMIA, the Canadian employer needs to submit a series of forms and documents proving that the Company wasn’t able to find the right candidate from local talent.
In this case, the LMIA letter is the first step to secure your job in Canada while you have a valid work permit.

A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) that Canadian employers often need before hiring foreign workers.

The LMIA process ensures that the employment of foreign workers won’t negatively impact the Canadian labour market.

It verifies that no Canadian citizens or permanent residents can fill the role. A positive LMIA, a confirmation letter, confirms that the employer can hire a foreign worker to meet their staffing needs.

This document is crucial in Canada’s Temporary Foreign Worker Program (TFWP), especially in sectors where domestic talent may be scarce.

Employers must show they’ve tried to recruit locally before seeking an LMIA. Once an employer secures an LMIA, the foreign worker can apply for a Canadian work permit.

Applying for an LMIA is a multi-step process that requires careful preparation by Canadian employers. Here’s a quick overview of how to apply:

1. Job Posting and Recruitment: Employers must first advertise the job in Canada for at least four weeks to prove that no suitable Canadian citizen or permanent resident is available to fill the position. Ads should be placed on recognized job boards like the Job Bank and other recruitment channels.
2. Submit the LMIA Application: Once the recruitment efforts are complete, the employer submits the LMIA application via the online LMIA Portal. This includes detailed information about the job, recruitment efforts, and other supporting documents. An application fee of CAD 1,000 per worker is required.
3. Review by Service Canada: Service Canada reviews the application, assessing the wage, working conditions, and recruitment efforts to ensure compliance with the labor market standards. Depending on the stream, processing times vary, but they can range from a few weeks to a few months.
4. Outcome: If approved, the employer receives a positive LMIA (confirmation letter), which allows the foreign worker to apply for a work permit using the LMIA document.

Following these steps ensures compliance and a smoother hiring process when bringing foreign workers to Canada.

When a Canadian employer wants to hire a foreign worker, the first step is obtaining a positive or neutral LMIA.
To get a positive or neutral LMIA, the employer must provide certain documents and information about the position, why they want to hire a foreign worker and why the Canadian workers could not do this job.
If the LMIA is for a position located in Quebec, other documents may apply.
When the LMIA is granted, the Canadian company must provide a copy and a job offer to the applicant.

To apply for an LMIA, employers must follow several steps and meet specific requirements to hire a foreign worker.

1. Job Posting and Recruitment: Employers must demonstrate efforts to hire Canadian citizens or permanent residents before applying for an LMIA. This includes posting the job on Canada’s Job Bank and other recruitment platforms for at least 30 days. Detailed records of all recruitment efforts must be kept, including the platforms used and the responses received.
2. NOC Code and Job Details: Employers must identify the correct National Occupational Classification (NOC) code for the position. The NOC code helps determine job requirements, wages, and qualifications. Ensuring the job description matches the NOC is essential for approval.
3. Wage Requirements: The offered wage must meet or exceed the median wage for the job and location. For high-wage positions, a transition plan must demonstrate efforts to reduce reliance on foreign workers over time. Employers are subject to additional requirements for low-wage positions, such as limits on the number of low-wage workers they can hire.
4. Application Fee: The LMIA application fee is $1,000 per worker. The employer must pay this fee, and it cannot be passed on to the foreign worker in any way. Employers may also incur costs for recruitment, advertising, and legal services if necessary.
5. Application Submission: The LMIA application is submitted through the LMIA Online Portal, where employers can track the status of their application and respond to any additional document requests.
6. Processing Time: The processing time for an LMIA can vary from a few weeks to several months, depending on the stream. For instance, the Global Talent Stream has a processing time of around ten business days, while the high-wage and low-wage streams can take 2 to 3 months.
7. Approval: If the LMIA is approved, the employer will receive a confirmation letter, which the foreign worker needs to apply for a work permit. In case of a negative outcome, the employer can reapply with updated documentation.

Understanding these steps and preparing accordingly can improve the chances of a successful LMIA application.

Proving the legitimacy of your business is essential when submitting an LMIA application. Employers must provide various documents to demonstrate they are operating a legitimate business that offers a product or service in Canada. 

These documents can include business licences, financial statements, tax filings (like T2 or T4 summaries), and payroll records.

Depending on the type of business, employers may also need to submit an attestation from a lawyer or chartered accountant confirming the business’s good financial standing and ability to meet its obligations to foreign workers.

For businesses outside Canada, contracts or invoices for goods or services provided within Canada may also be required to prove operations. 

Ensuring compliance with provincial or federal regulations is critical to avoid delays or rejections in the application process. By carefully preparing these documents, employers can boost their chances of obtaining a positive LMIA.

Employers hiring temporary foreign workers (TFWs) in Canada must ensure workplace safety. They must ensure that all workers, including TFWs, are covered by provincial or territorial workplace safety insurance or, if allowed by law, by an equivalent private insurance plan. 

This coverage must begin on the first day of employment and cannot be paid for by the worker. In addition to insurance, employers are required to provide a safe working environment and adhere to provincial labour standards that regulate working conditions, hours, and workplace health measures. 

Compliance with these safety regulations is essential, as violations can result in penalties and restrictions on future LMIA applications.

Employers must follow specific guidelines when hiring low-wage workers under the LMIA program in Canada. Unlike high-wage positions, a transition plan is not required for low-wage workers.

However, employers are strictly limited in the number of low-wage temporary foreign workers (TFWs) they can hire.

This cap is generally set at 10% of the employer’s total workforce, although industries like agriculture may have exceptions.

Employers must also ensure that they meet advertising requirements, which include posting the job on Canada’s Job Bank and targeting underrepresented groups, such as Indigenous people and newcomers. 

Additionally, employers are responsible for covering the worker’s transportation costs to and from Canada, and they must offer a wage that meets or exceeds the prevailing wage for the job in the region.

Employers must ensure that the housing provided is safe and affordable when hiring TFWs for low-wage positions in Canada. 

Suitable housing, as defined by the Canada Mortgage and Housing Corporation (CMHC), should not require significant repairs, such as fixing defective plumbing or electrical systems.

It must also be spacious enough to avoid overcrowding and offer basic amenities like functioning toilets, proper ventilation, and a reliable water supply.

Affordable housing means the cost, including utilities, must be less than 30% of the worker’s pre-tax income.

In certain provinces, such as British Columbia, employers can deduct accommodation costs from workers’ wages, but these deductions must be clearly outlined in the employment contract. 

Ensuring compliance with these housing standards is essential to maintain worker well-being and meet legal obligations.

• Apply for LMIA to Employment and Social Development Canada (ESDC).
• Obtain positive or neutral LMIA
• Provide the foreign with a valid job offer
• Update the foreign candidate with the following information: Employer name and address, start date, LMIA number and NOC related to the job position.
• Foreign Worker applies for Work Permit. The foreign worker can apply for a temporary work permit to Immigration, Refugees and Citizenship Canada (IRCC).

• Canadian employers must obtain a neutral or positive LMIA from ESDC. This letter proves that there are not Canadian citizens or residents to do the job.
• Employers extend the job offer to the candidate.With the LMIA, the employer must provide a copy and a job offer to the candidate to apply for the work permit in Canada.
• The foreign worker applies for Work Permit in Canada:Submit an application to the IRCC for a temporary work permit.
• The work permit is issued:At the entry point by a Canada Border Services Agency (CBSA) officer, the temporary work permit will be issued when the foreign worker arrives in Canada. A temporary work permit may be issued for a few days to a few years.

After an LMIA is approved, the following steps are crucial for both the employer and the foreign worker:

1. Employer Sends the LMIA to the Worker: Once the LMIA is approved, the employer will receive a favorable decision letter, often referred to as an LMIA confirmation letter. The employer must then send a copy of this letter and other supporting documents like Annex A to the foreign worker. These documents are essential for the worker’s next step.
2. Worker Applies for a Work Permit: With the LMIA confirmation letter, the foreign worker can apply for a work permit through Immigration, Refugees, and Citizenship Canada (IRCC). The processing time for the work permit application may vary depending on where the application is submitted and the type of job.
3. Valid LMIA: A positive LMIA is typically valid for 6-12 months, depending on the stream and specific program. During this period, the worker must submit their work permit application.

These steps ensure the smooth transition of hiring a foreign worker under Canada’s LMIA-based system. Proper communication and document handling between the employer and the worker are essential throughout the process.

Certain foreign workers in Canada can be hired without needing an LMIA, simplifying the process for both employers and workers.

These exemptions typically fall under the International Mobility Program (IMP), which facilitates the movement of workers without proving the need for foreign labor. Some of the key categories that are LMIA-exempt include:

1. Free Trade Agreements (FTAs): Workers from countries with free trade agreements with Canada, like the Canada-United States-Mexico Agreement (CUSMA), may be exempt from LMIA requirements, especially in fields related to professional services and trade.
2. Intra-Company Transfers: Employees of multinational companies being transferred to a Canadian branch can work in Canada without an LMIA if they possess specialized skills or management experience.
3. Post-Graduation Work Permits (PGWP): International students who graduate from Canadian institutions can obtain work permits without needing an LMIA, allowing them to gain work experience and potentially transition to permanent residency.
4. Francophone Mobility: This program, which helps promote bilingualism across Canada, can benefit employers hiring French-speaking workers outside of Quebec.
5. Reciprocal Employment: This includes programs like International Experience Canada (IEC), which offers work opportunities for youth, and similar exchange programs that provide Canadian workers with equivalent opportunities abroad.

These exemptions streamline the hiring process, saving employers time and money while meeting Canada’s economic needs.

The Facilitated LMIA process in Quebec simplifies hiring TFWs for certain high-demand occupations. 

Under this process, Quebec employers do not need to provide proof of recruitment efforts when hiring for specific roles identified by the provincial government as experiencing labor shortages.

These occupations are updated annually and typically fall under National Occupational Classification (NOC) levels 0, A, and B (now referred to as TEER 0, 1, 2, and 3). Some key features:

No recruitment proof required: Employers can bypass the usual requirement to show recruitment efforts within Canada.

Updated occupation list: The list includes various managerial, professional, and technical roles, such as financial managers, engineers, IT system managers, and healthcare administrators.

Duration of employment: Temporary foreign workers can be hired for up to three years.

Wage consistency: The wages offered to foreign workers must be comparable to those paid to Canadians in similar roles and regions.

This process helps Quebec employers address labour shortages more efficiently, especially in sectors crucial to the province’s economy.

The CETA Work Permit is part of the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union.

This agreement allows EU citizens to work in Canada without requiring an LMIA, simplifying the hiring process for Canadian employers. CETA offers various pathways for different categories of workers:

1. Business Visitors: EU citizens can visit Canada for business purposes without a work permit if they do not enter the Canadian labour market.
2. Intra-Company Transferees: Employees of EU-based companies can transfer to a Canadian branch or affiliate, similar to the intra-company transfer rules under CUSMA. This is typically used for senior personnel or specialists.
3. Independent Professionals and Contractual Service Providers: Self-employed professionals and employees of EU-based companies contracted to provide services to a Canadian company can apply for a CETA work permit. These permits are usually limited to 12 months but can be extended depending on the circumstances.
4. Investors: EU-based investors who establish or significantly expand a business in Canada can also benefit from the CETA work permit.

CETA work permits streamline EU citizens’ entry into the Canadian workforce, promoting easier business collaboration and economic opportunities between Canada and the EU.

If you’re looking to hire a foreign worker in Canada without needing an LMIA, the International Mobility Program (IMP) is the route to consider.

This program allows employers to hire temporary foreign workers in specific situations without going through the LMIA process.

1. Check Eligibility: Many LMIA exemptions are based on international trade agreements like CUSMA (Canada-United States-Mexico Agreement), CETA (Canada-European Union Comprehensive Economic and Trade Agreement), and CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership). These agreements allow for hiring professionals, intra-company transferees, and investors from member countries.
2. Employer Compliance: Even without an LMIA, employers must still submit an offer of employment via the Employer Portal and pay a compliance fee (typically CAD 230) to ensure the offer meets Canadian standards.
3. Exempt Categories: Common categories of LMIA exemptions include intra-company transfers, professionals under international agreements, researchers, and workers providing significant cultural or economic benefits to Canada.
4. Work Permit: Once the offer is submitted, the foreign worker can apply for a work permit using the specific LMIA-exempt category under which they qualify.

This streamlined process helps employers access global talent more quickly without the longer steps associated with obtaining an LMIA.

Securing an LMIA Work Permit is an essential step toward working in Canada. Understanding the requirements and process can increase your chances of success. Have you applied for an LMIA before? Share your experiences or ask any questions in the comments below!