A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada may need to get before hiring a foreign worker. A positive LMIA will show that there is a need for a foreign worker to fill the job. It will also show that no Canadian worker or permanent resident is available to do the job. A positive LMIA is sometimes called a confirmation letter. Once an employer gets the LMIA, the worker can apply for a work permit. Some hiring situations and jobs are LMIA exempt, therefore it is employers’ responsibility to make sure whether or not a LMIA is requested. You also need to identify the position you are offering is a high-wage or a low-wage job as different application systems are adopted. Labour Market Impact Assessment application can be submitted up to 6 months prior to the expected job start date to ensure enough time is left for foreign workers to apply a work permit.
Program requirements for high-wage positions
| Criteria | Requirements |
|---|---|
| Business Legitimacy | All employers must demonstrate that their business and job offer are legitimate by submitting: – the most recent Canada Revenue Agency documents – a document demonstrating that the conditions of the job offer can be met – a document demonstrating that it is a legal business that provides a good or a service in Canada. |
| Transition Plan | An employer must describe the activities they are agreeing to undertake to recruit, retain and train Canadians and permanent residents and to reduce the reliance on the Temporary Foreign Worker Program. |
| Recruitment | – An employer must conduct at least 3 different recruitment activities to hire Canadians and permanent residents before offering a job to a temporary foreign worker. – Advertising must have occurred in the 3 months prior to submitting the LMIA application. – Advertising must be for a minimum of 4 consecutive weeks. – At least 1 of the 3 activities must be ongoing until the date a positive LMIA has been issued. |
| Wages | Employers must pay the prevailing wage which is defined as the highest of either: – the median wage on Job Bank, or – the wage that is within the wage range that the employer is paying the current employees hired for the same job and work location, and with the same skills and years of experience. |
| Job duties and working conditions | – The temporary foreign workers must only perform duties that correspond to the occupation they were hired for. – Canadian law protects all workers in Canada, including temporary foreign workers. – The exploitation of temporary foreign workers is considered a violation of Canadian laws and human rights. |
| Workplace safety | An employer must always ensure that the temporary foreign workers are covered from the provincial or territorial workplace safety insurance provider. |
| Language restriction | – English or French are the only languages an employer can identify as a job requirement in the LMIA application and job advertisement. – If another language is essential for the job, the employer must provide a justification on the application. |
| Unionized positions | If an employer is applying to hire temporary foreign workers for positions covered under a collective agreement: – the same wage rates as those established under the collective agreement must be advertised and offered – the same terms and conditions as Canadian and permanent resident workers must be offered – a copy of the section of the collective bargaining agreement on the wage structure must be submitted. |
Low-wage position application has very similar requirements. However, employer is subject to a cap on the proportion of temporary foreign workers that they can hire in low-wage positions at a specific work location.
