Labour Market Impact Assessment (LMIA)
To employ a momentary foreign worker, mostly all Canadian work permits demand a Labour Market Impact Assessment, previously known as a Labour Market Opinion.
What is a Labour Market Impact Assessment, and how does it work?
An LMIA is a labour market verification process in which Employment and Social Development Canada evaluates a job offer to ensure that hiring a foreign worker will not negatively impact the Canadian labour market. Companies will be obliged to give a range of sources regarding the position for which they wish to hire a foreign worker, such as the amount of Canadians who submitted, the number of Canadians who were questioned, and thorough justifications for why the Canadian workers evaluated were not hired.
The important terms will be considered by ESDC in their evaluation of the job offer:
· Is the overseas worker’s pay in line with the national standard for the profession in the area where the employment is located?
· Is the employment situation in accordance with labour laws and/or organized labour arrangements?
· Is there a high unemployment in the area where the job is located for that profession?
· Is the business and/or industry involved in a labour dispute?
· Is the Canadian employer attempting to fill the post with a Canadian?
· Will the migrant worker be qualified to teach Canadians about his or her special knowledge and experience?
· Will employing a migrant worker help Canadians find or keep jobs?
· Will the foreign employees be a Canadian employer’s staff, with the expectation that the foreign worker would work extra for a set salary?
In average, the further technical the profession and the higher the compensation given, the more likely a positive LMIA will be obtained for employment located in one of Canada’s main cities. This is still true in less crowded cities and regions, but getting an LMIA may be simpler in general.
Work Permits Based on the LMIA:
In addition to get a Canadian work visa, overseas unions and employers must often go through a two-step process. The candidate must first apply for a Labour Market Impact Assessment through ESDC, then apply for a work visa through Citizenship and Immigration Canada. The LMIA is granted by ESDC, which enables a Canadian business to hire a foreign worker after examining a number of protective labour market conditions.
Service licenses for foreign employees an LMIA will only be granted for a year in all low-wage occupations, according to an announcement made in June 2014.
How long it’ll take to get an LMIA?
Because of certain LMIA requests, the ESDC has agreed to a 10-day service standard. Employment in growing market, such as technical fields, jobs paying in the top 10% of single amount by Canadians in that particular jurisdiction, and jobs with a limited duration employment period of less than 120 days will be eligible for the 10-day assessment.
LMIA applications are processed by ESDC offices, and ESDC offices can be found in every Canadian province.
Companies who qualify for an LMIA must meet the following requirements:
Since June 2014, all companies who want to engage a contractual foreign worker in Canada should spend a $1,000 CDN handling fee for every demand for a labour market evaluation. There is also a $100 Canadian “privilege fee” to pay.
Except if the business can demonstrate that yet another dialect is required, English and French must have been the only dialects that can be identified as work needs in both LMIAs and job vacancy adverts.
Companies should also publicize all job openings in the Canadian job market for some time four weeks prior filing for an LMIA, and they must demonstrate that they employed at least two different recruitment strategies in addition to posting an ad on the Canadian Job Bank website.
Employers must concentrate their marketing efforts on specific groups of Canadians.
Aboriginals and people with disabilities, for example, are underrepresented.
Employers who apply for LMIA for high-wage positions must also submit a transition plan to ESDC along with their application. The company’s transition plan should detail how it intends to reduce its reliance on temporary foreign workers. Employers can demonstrate their intent to reduce their reliance on temporary foreign workers by investing in skills training or hiring Canadian apprentices. The transition plan may also include proof that the business is aiding its high-skilled temporary foreign worker in becoming a permanent resident of Canada.
If the employer is selected for an inspection or if they request to renewal their LMIA, they will be expected to submit reports on their transitional plan’s performance.
If they hire foreign workers, employers must certify that they are aware that they are banned from laying off or reducing the hours of Canadian workers.
A lot of factors influence whether ESDC will handle an LMIA application, and employers should be aware of them. At the moment, an employer’s LMIA application will not be processed unless it meets all of the following criteria:
Lodging, Catering Services, or Retail Sales are the occupations mentioned on the LMIA. These jobs are classed as NAIC type 72, 44, or 45, according to the North American Industry Classification System (NAIC).
In the National Occupation Classification, the occupation indicated is classified as Skill Level D. The yearly unemployment rate in the economic zone where the job will be held is over 6%. Employers seeking foreign pilots, for example, may be subject to additional criteria.
Complete out our evaluation form if you’d like more information about the LMIA procedure or need help recruiting a foreign worker to Canada.
Considering the LMIA Application’s Worth
A work visa in Canada is usually obtained in two stages. First, a qualifying LMIA application must be submitted to Employment and Social Development Canada (ESDC). The Canadian business must also supply a complete list of all Canadians who wanted the job, the amount of Canadians who were
interviewed for the job, and thorough justifications for why the Canadian applicants examined were not selected. Following the issuance of a work permit, Canadian businesses might well be subject to compliance inspections.
ESDC will examine the following factors while evaluating the applicant’s merits:
Is there a pool of qualified Canadians in the area who are capable of doing the job? Has the employer gone to great lengths to find a Canadian to fill the position? Will employing a foreign national assist in the creation or retention of jobs in Canada? Is the wage or salary offered by the company comparable to the regional average for the position? Are the working conditions up to par with Canadian labour laws? Is there a current labour dispute between the employer and the industry in which the position is located?