A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada will sometimes require before a foreign worker can obtain a Work Permit, and an employer can hire or continue to employ a temporary foreign worker. Once an LMIA approval is issued by Employment and Social Development Canada (ESDC), the temporary foreign worker will be able to apply for a Work Permit authorizing them to be employed by an employer in Canada.
An LMIA confirms that an employer has a need to hire a Temporary Foreign Worker, that there are no qualified Canadians or Permanent Residents available to fill the role, and that the employer can pay the offered wage. An employer will need an LMIA to hire a Temporary Foreign Worker unless the individual qualifies for an LMIA exemption under the International Mobility Program or is exempt from requiring a work permit.
Among the various LMIA application streams are the High-Wage, Low-Wage, and Global Talent Streams:
High-Wage LMIA
The High-Wage Stream is for employers looking to hire Temporary Foreign Workers who will be earning at or above the provincial or territorial median hourly wage. Importantly, before applying for an LMIA, most employers must demonstrate that they have already tried to locate qualified Canadian Citizens or Permanent Residents for the position they are looking to fill. Recruitment efforts must be conducted using a variety of methods that meet the requirements of the Temporary Foreign Worker Program. During this recruitment period, the employer must review incoming applications and provide detailed reasons why Canadians and Permanent Residents are not available. Employers under this stream can request an employment duration for a Temporary Foreign Worker of up to 3 years, and in most cases, must commit to a “Transition Plan” to decrease reliance on the Temporary Foreign Worker Program in the future.
Low-Wage LMIA
The Low-Wage Stream is for employers looking to hire Temporary Foreign Workers who will be earning less than the provincial or territorial median hourly wage. Like an application under the High-Wage Stream, employers must first undertake recruitment efforts to attempt to find Canadian Citizens or Permanent Residents for the job. Employers under this stream can only request an employment duration for a maximum of 1 year. Currently under the Low-Wage LMIA stream, there is a refusal to process applications in census metropolitan areas with a 6% unemployment rate or higher, along with sector-specific cap limitations. Employers should remember that Low-Wage LMIAs carry additional employer compliance obligations, including the requirement to pay for roundtrip transportation to Canada and back to the Temporary Foreign Worker’s home country at the end of their work permit, and to ensure that Temporary Foreign Workers has suitable and affordable accommodation in Canada.
Global Talent Stream
The Global Talent Steam includes two (2) categories of applications, both of which qualify for an expedited 2-week processing service standard. Category A is for innovative companies that are referred to ESDC by designated referral partners. These companies must be seeking to fill a unique and specialized role to help scale-up and grow their business. Category B is available to firms that need to fill in-demand, highly skilled positions on the Global Talent Occupations List. These occupations include roles such as civil engineers, computer engineers, software engineers and designers, web designers and developers, and many more.
Under the Global Talent Stream, employers are not required to undertake recruitment efforts but instead must commit to a series of commitments that will benefit the Canadian labour market in a Labour Market Benefits Plan. Similar to the High-Wage Stream, employers who apply under the Global Talent Stream can request an LMIA employment duration of up to 3 years.
Each LMIA stream has different requirements and conditions, and it is important for employers to understand the differences and their specific compliance obligations.
If you are interested in applying for an LMIA or want to know if you may be an eligible employer, please contact us.
