LMIA has been one of the greatest advantages Canadian immigration has to offer not just for foreign workers but for Canadian employers too. While the process may seem quite easy for applicant but LMIA requirements for Employers could be a little overwhelming.
Employers have to obtain Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC), which applicants can then use to obtain their work visa. In this post, we will discuss what are the requirements and processes for employers to obtain LMIA for a foreign national.
What is LMIA?
The Labour Market Impact Assessment (LMIA) is a document Canadian employers need to hire foreign workers, proving that hiring position cannot be found within Canada and won’t negatively affect the Canadian job market.
LMIA Requirements for Employers
Below are the primary requirements to obtain LMIA for employers:
1. Business Legitimacy
Employers must provide documents that establish the legitimacy of their business, such as:
- Registered Business and Licensing: Employers must provide documents such as business licenses or registration certificates to show that their business is legally registered and authorized to operate in Canada.
- Financial Stability: Employers need to demonstrate financial stability and the ability to pay the foreign worker. This can include financial statements, tax returns, and other relevant financial documents.
- Operational Presence: Employers must prove they have a physical and operational presence in Canada. This can be shown through lease agreements, utility bills, or other documents that verify the location and ongoing operations of the business.
2. Job Advertisement
One of the primary requirements for LMIA is that employers must advertise the job vacancy across multiple platforms (e.g., national job bank, newspapers, online job boards) for at least four consecutive weeks or 30 days.
The job advertisement should be in line with Canadian standards and you must able to demonstrate that efforts were made to hire a Canadian citizen or permanent resident. This includes series of interviews, tests and application rounds. Advertisement must stay live until a decision on the LMIA application is made by ESDC.
3. Wages and Working Conditions
- The wages offered must be consistent with the median wage rate for the occupation in the specific region.
- Working conditions must meet or exceed those in similar Canadian positions
| Criteria | High-Wage Workers | Low-Wage Workers |
|---|---|---|
| Advertising Requirements | – Advertise on a national or provincial job bank for at least 28 days. – Use two additional sources of advertising, one national. |
– Advertise on a national or provincial job bank for at least 28 days. – Use two additional sources of advertising, one national. |
| Transition Plan | – Required. – Employers must outline how they will transition to hiring or training Canadian citizens or permanent residents. |
– Not required. |
| Cap on Temporary Foreign Workers | – Not applicable. | – A cap on the number of low-wage temporary foreign workers: – Up to 30% of employees if hiring in a sector with a demonstrated labor shortage. – Otherwise, up to 20% of employees. |
| Business Legitimacy Requirements | – Proof of business registration and licensing. – Demonstrate financial stability. – Verify operational presence. |
– Proof of business registration and licensing. – Demonstrate financial stability. – Verify operational presence. |
| Wages Offered | – Must meet or exceed the median wage for the occupation in the region. | – Must meet or exceed the provincial/territorial minimum wage. |
| Job Offer Requirements | – Full-time, permanent positions. | – May include temporary positions. |
| Employee Benefits and Working Conditions | – Must be consistent with Canadian standards. | – Must be consistent with Canadian standards. |
4. Transition Plan (for high-wage positions)
Employers hiring for high-wage positions may need to submit a transition plan. This transition plan shows that their overall reliability for foreign workers will set to reduce in upcoming years and will train more Canadians and hire more Canadians for that. This can be done by:
- Three Additional Recruitment Activities: Engage in activities beyond standard advertising, such as using a recruitment agency, hiring events or seminars.
- Target Under-Represented Groups: Implement recruitment techniques that encourage applications from under-represented groups like LGBTQ+ and BIPOC communities.
- Support Temporary Foreign Workers: Facilitate pathways for temporary foreign workers to become permanent residents, such as offering full-time permanent positions.
Frequently Asked Questions
Can I still apply for LMIA if my Business is registered few days ago?
Yes, until and unless you’re able to prove that you have a genuine intention of employing foreign temporary workers and this will not negatively impact Canadian Labour Market you will be able to obtain an LMIA even business is registered recently.
What are the document requirements for LMIA?
Here are the essential document names required for an LMIA application:
- Job Offer and Employment Contract
- Proof of Recruitment Efforts
- Business License or Registration
- Financial Statements or Tax Documents
- LMIA Application Form
How many LMIAs you can apply for per year?
There is no specific cap for number of LMIAs you can get from ESDC per year however, For low-wage positions, employers can hire temporary foreign workers for up to 30% of their workforce if there is a demonstrated labor shortage in the sector and in some sectors only 20% or one.
How long does it take for the LMIA to be approved?
LMIA for certain programs can take up to few weeks, here’s detailed timeline:
- Global Talent Stream (GTS): Around 10 business days.
- High-Wage and Low-Wage Positions: Approximately 8 to 10 weeks.
- Seasonal Agricultural Worker Program (SAWP): About 10 to 13 weeks.
- Agricultural Stream: Around 8 to 10 weeks.
- In-Home Caregivers: Approximately 8 to 10 weeks.
What are LMIA employer income requirements?
There’s no specific income requirement for LMIA, however, you must be able to prove your business’s financial position that you can afford LMIA to pay temporary foreign workers in Canada.
