The Labor Market Impact Assessment (LMIA) is a document issued by the Employment and Social Development Canada (ESDC) that assesses the impact of hiring a foreign national in Canada. A positive LMIA indicates that there is no Canadian citizen or permanent resident to fill a job position, thus enabling an employer to hire a foreign national. A negative LMIA indicates that a job must be filled by a Canadian citizen or permanent resident.
A foreign national cannot apply for an LMIA. LMIAs are documents that must be requested by a Canadian employer. While it is sometimes possible to hire an outsourced worker who is exempt from the requirement, or exempt from having a work permit, all current Canadian Foreign Workforce (TFWP) program flows require an employer from LMIA Use to hire workers outside of Canada. Many Canadian immigration routes that end in permanent residency require positive LMIA applicants to be eligible for a job offer in Canada.
An employer can submit an LMIA application no later than 6 months prior to the intended start date for the job. LMIA application methods vary depending on the person being hired. Employers should consult the average hourly wage in their province or territory to determine whether the position is high-wage or low-wage, as low-wage positions require the employer to meet additional criteria. There are specialized streams for employers wishing to obtain an LMIA for specific areas of employment. These flows are as follows:
LMIAapplication prerequisites
LMIA requests are mailed in writing to the relevant Service Processing Center in Canada. Applications must have evidence that they have met the following criteria:
Low-wage labor
For this reason, employers must provide evidence that TFW is covered by insurance that is at least equivalent to the medical coverage provided by the province or territory of the workplace.
After sending
Once the LMIA application has been processed, the decision is told to the employers. If the employer issues a positive LMIA, he or she can apply to hire a foreign national. If a negative LMIA is issued, unfortunately the employer is not allowed to hire a foreign national.
Positive LMIAs are valid for 6 months from the date of award. After receiving a positive LMIA, the employer must notify foreign nationals so that they can apply for a work or permanent residence permit. In certain circumstances, employers may request that they process their LMIA application within 10 days. To be eligible for fast processing, an employer must be outside Quebec and meet one of the following requirements:
Average hourly wage by province or territory
If an employer has hired a TFW to pay an average or above-average hourly wage for their province or region in their province or territory, they must pass it on to high-wage employees for the LMIA. If an employer hires TFW to be paid below the average hourly wage, they will have to outsource low-wage labor.
Province or territory |
Wage 2017 (dollars per hour) |
Wage 2018 (dollars per hour) |
Wages before April 22, 2019 |
Wages from April 22, 2019 |
|
Alberta |
26.40 |
26.67 |
British Columbia |
23.00 |
23.98 |
Manitoba |
20.83 |
21.00 |
New Brunswick |
19.35 |
20.00 |
Newfoundland and Labrador |
21.98 |
22.00 |
Northwest Territories |
32.00 |
34.00 |
Nova Scotia |
20.00 |
20.00 |
Nunavut |
31.00 |
30.00 |
Ontario |
22.50 |
23.08 |
Prince Edward Island |
19.00 |
19.49 |
Quebec |
21.75 |
22.00 |
Saskatchewan |
24.00 |
24.52 |
Yukon |
28.00 |
30.00 |
In certain cases, it may not be necessary for an employer to obtain an LMIA to hire a foreign worker. Most exemptions are managed through the International Dynamics Program.
The province of Quebec maintains considerable independence from its immigration policies and flows. For this reason, the province has unique differences in the employment of foreign labor. The simplified LMIA process allows Quebec employers to use LMIA employees without the need to provide proof of employment of a Canadian citizen or permanent resident of Canada to fill a job position.
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The Global Talent Stream (GTS) is a two-year pilot program launched in June 2017 through a partnership between Immigration, Asylum and Citizenship of Canada (IRCC) and Employment and Social Development Canada (ESDC). The GTS is helping some Canadian employers to hire world-class talent to enable them to compete internationally. Employers who are successfully referred to this program can accelerate the process of hiring foreign nationals through a global skills strategy.
The Canada International Dynamics Program enables skilled foreign nationals to work temporarily in Canada as in-house transfers. If a foreign national is an employee of a company outside of Canada, he or she may be eligible for an exemption work permit to transfer to one of the company’s locations within Canada. In-house transfer law applies to all countries.
The North American Free Trade Agreement (NAFTA) includes a wide range of trade protocols between Canada and the United States. NAFTA provides unique opportunities to allow US and Mexican citizens to work in Canada. Foreign nationals covered by NAFTA may be eligible to work in Canada without the need for a Labor Market Impact Assessment (LMIA) or work permit.
The EU-Canada Comprehensive Economic and Trade Agreement covers a wide range of trade protocols between Canada and EU member states. CETA provides unique opportunities to allow citizens of EU countries to work in Canada. Foreign nationals covered by CETA may be eligible to work in Canada without the need for a Labor Market Impact Assessment (LMIA) or work permit.