LMIA Overview - For Your Employer
LMIA FAQs
What is a Labour Market Impact Assessment (LMIA)?
A Labour Market Impact Assessment (LMIA) is a crucial document required by Canadian employers before hiring a foreign worker. A positive LMIA demonstrates the necessity of hiring a foreign worker for a specific job, enabling the worker to apply for a work permit. The application for an LMIA is submitted to Economics and Social Development Canada (ESDC).
What is the duration of an LMIA-based work permit?
Most LMIA-based work permits are initially valid for 18 months, with the possibility of extension.
Benefits of Supporting a Foreign Worker with an LMIA - for an Employer:
· Repurposing LMIA for Additional Hires: An LMIA approval allows employers to hire more foreign workers.
· Increased Employee Stability and Performance: Workers on LMIA-based permits tend to exhibit lower turnover rates and higher performance, as they are often dependent on their employer for continued work in Canada.
· Strategic Consideration for Permanent Residency: Foreign workers may leverage the work experience gained through LMIA-based permits for future Canadian permanent residence applications. This decreases worker turn over and increases employees incentives to meet and exceed employer expectations.
General Requirements for Employers
In order to successfully apply for a Labour Market Impact Assessment (LMIA) and hire a temporary foreign worker in Canada, employers must meet specific requirements outlined by the Employment and Social Development Canada (ESDC). Here's a simplified breakdown of key considerations:
1. Ability to Fulfill Terms of the Job Offer
· For a smoother LMIA application process, employers should ideally have a business that's been in operation for at least one year. This helps demonstrate to the ESDC that the employer can meet the terms of the job offer, including payment and benefits.
2. Gross and Net Revenues
· A strong LMIA application includes the company's T2s from the last three years (if applicable). Providing an attestation from the company's lawyer or accountant, confirming the realistic financial ability to pay the temporary foreign worker's salary, adds significant weight to the application.
3. Number of Current Staff
· Clearly explaining the current staff composition and how hiring a temporary foreign worker through an LMIA will benefit the company is essential. This includes details such as who the foreign worker will manage, why a Canadian citizen or permanent resident cannot fill the position, and highlighting the special skills the foreign worker brings.
4. Proof of Goods and Services Compliance
· Submitting a T4 summary and/or PD7A, along with a lawyer or accountant attestation, helps confirm the nature of the business.
· ESDC also requires documentation such as business licenses and permits (which are required to run the business).
· Any past or current employment compliance issues should be disclosed, along with the steps taken to resolve them.
5. Genuine and Reasonable Employment Need
· Employers must confirm job details, including hours, experience, education requirements, and the offered wage. Clear explanations are required for the inability to fill the position with a Canadian citizen or permanent resident. This can be supported by evidence such as past recruitment efforts, employee termination files, and specific research related to the occupation.
6. Recruitment Efforts
· A continuous 4-week recruitment effort is necessary for the LMIA application, involving specific job ads written in compliance with ESDC requirements. The ads must remain active throughout the application process, and inquiries from potential applicants must be recorded and responded to according to ESDC standards.
7. Other Items
· Employers need to present a job contract to ESDC and attend an interview. During this interview, the government officer will confirm job details and inquire about the employer's plans to reduce dependence on hiring foreign talent in the future. Throughout the application, it's crucial to demonstrate to ESDC how the foreign worker will bring value to the Canadian company, whether through increased profit or knowledge transfer to local workers.
How can Adriana Ryckman Immigration Consulting help?
As Regulated Canadian Immigration Consultants (RCIC), we will handle all aspects of the LMIA application process including:
Comprehensive Documentation Management: Skillful handling of all pertinent paperwork, ensuring meticulous completion to meet regulatory standards and organizational requirements.
Strategic Talent Acquisition Aligned with ESDC Guidelines: Implementing recruitment strategies in strict adherence to Employment and Social Development Canada (ESDC) specifications, guaranteeing a seamless alignment with immigration regulations.
Holistic Advisory Services Throughout the Process: Providing expert counsel at every stage of the immigration process, offering invaluable guidance to employers, ensuring informed decision-making and compliance with relevant regulations.
Persuasive Advocacy in ESDC Proceedings: Crafting and presenting compelling arguments to the Employment and Social Development Canada (ESDC) to substantiate why the employer satisfies the criteria for hiring a Temporary Foreign Worker (TFW) for the specified position.
Diligent Application Submissions: Methodical preparation and submission of Labour Market Impact Assessment (LMIA) and Work Permit applications to pertinent government authorities, ensuring accuracy and completeness to expedite the processing timeline.
Proficient Representation at ESDC Interviews: Attending interviews with Employment and Social Development Canada (ESDC) on behalf of the employer, demonstrating a high level of professionalism and competence to facilitate a successful outcome in support of the Temporary Foreign Worker (TFW) application.
The employer will be responsible for providing the required documents to the RCIC and answering the required questions to draft the relevant legal documents and arguments.
