Labour Market Impact Assessment

(LMIA)
 What is the LMIA?
• Prior to the Labour Market Impact Assessment, the process was known as
a Labour Market Opinion(LMO).
• On June 20, 2014, the Minister of Employment and Social Development,
and the Minister of Citizenship and Immigration, announced significant
changes to Canada's Temporary Foreign Worker Program (TFWP).
• Under the new rule, the Labour Market Opinion is now be replaced by the
Labour Market Impact Assessment (LMIA).
• LMIA-exempt foreign workers will become part of the newly-named
International Mobility Program. As a result, the Temporary Foreign Worker
Program(TFWP) will only refer to foreign workers who require a LMIA.
 Does an Employer Need a LMIA?
• The TFWP lets employers hire temporary workers to fill temporary
labour and skill shortages.
• An employer will need a LMIA from Employment and Social
Development Canada (ESDC)/Service Canada stating that they can hire
the temporary worker.
• A LMIA verifies that there is a need for a temporary worker and that no
Canadians or PRs are available to do the job.
• If an employer hires a temporary worker through the TFWP, he/she will
need to apply for a LMIA and pay the related fee. However if he/she
wants to provide a job with a profession that has high unemployment
rates(6% or above), then he/she cannot get LMIA easily.
 Exemptions from LMIA
• The International Mobility Program (IMP) lets employers hire temporary workers
without a LMIA.
• The IMP includes all stream of work permit applications that are LMIA-exempt.
• Exemptions from the LMIA process are based on
• broader economic, cultural or other competitive advantages for Canada; and
• reciprocal benefits enjoyed by Canadians and PRs.
• If an employer hires a temporary worker through the IMP, he/she will need to pay an
employer compliance fee($230) and submit an offer of employment form to IRCC.
• This must be done before the foreign national can apply for a work permit.
• The employer will submit the offer of employment through the Employer Portal.
 Review the LMIA Exemption Codes

• Go to the LMIA Exemption Codes

(https://www.canada.ca/en/immigration-refugees-
citizenship/corporate/publications-manuals/operational-
bulletins-manuals/temporary-residents/foreign-
workers/exemption-codes.html) table, and review the list of
regulations.
• Take note of the exemption code that applies to the
employer, who will need to include this code in the offer of
employment.
 Ineligible Employers
• Employers, whose name and address appear on this list have had a LMIA revoked:
Ineligible employers
• (permanently cancelled://www.canada.ca/en/employment-social-
development/services/foreign-workers/ineligible-employers.html)
• (ineligible to hire temporary workers for a period of time:
//www.canada.ca/en/immigration-refugees-citizenship/services/work-
canada/employers-non-compliant.html)
• A LMIA may be revoked if:
• new information becomes available after the assessment is provided indicating
that the employment of the foreign national under the work permit is having or
will have a significant negative effect on the labour market in Canada;
• the employer or group of employers provided false, misleading or inaccurate
information in the context of the request for that assessment.
 High-wage or Low-wage Position

•The wage being offered for the position will determine if an

employer needs to apply for a LMIA under the Stream for High-
wage Positions or the Stream for Low-wage Positions, each with
their own requirements.
•If an employer is offering a wage to a temporary foreign worker
that is:
•At or above the provincial or territorial median hourly wage, he/she must
apply under the Stream for high-wage positions
•Below the provincial or territorial median hourly wage, he/she must apply
under the Stream for low-wage positions
 Wages
• Wages offered to temporary foreign workers should be similar to wages paid to Canadian
and PR employees hired for the same job and work location, and with similar skills and
years of experience.
• For the purpose of the TFWP, the employer must pay the prevailing wage which is
defined as the highest of either:
• the median wage on Job Bank
• the wage that is within the wage range that the employer is paying current employees
hired for the same job and work location, and with the same skills and years of experience
• The primary concern of Service Canada is that the employee is not being underpaid. So
the employer should provide proper salary as per the prevailing wage. If the employer is
willing to go higher than this wage, the LMIA application has a higher chance for
success.
 Wage Rate Determination

•For the purpose of determining the wage rate being offered, ESDC
will only consider guaranteed wages, which exclude:
• overtime hours
• tips
• benefits
• profit sharing
• bonuses
• commissions
• other forms of compensation
 LMIA Application
•The LMIA application can be submitted up to six months prior to the
expected job start date.
•The employer must complete, sign and send it along with all required
documentation and the processing fee, to the appropriate Service
Canada Processing Centre.
•The application package must include:
•LMIA application form for high-wage positions (EMP5626) or for low-
wage positions (EMP5627)
•Proof of business legitimacy
•Proof of recruitment
Program Requirements: High-wage Positions

• Processing fee
• The employer must pay $1,000 for each position
requested to cover the cost of processing the LMIA
application.
• The processing fee will not be refunded if the application
is withdrawn, cancelled or if the LMIA is negative.
Refunds are issued only if a fee was collected in error.
 Business Legitimacy
• All employers applying to the TFWP must supply documents along with their
LMIA application to demonstrate that their business and job offer are
legitimate.
• ESDC assess the LMIA application and supporting documents to confirm that the
employer:
• can fulfill all of the terms of the job offer;
• is providing a good or a service in Canada or is applying for an in-home caregiver
position; and
• is offering employment that is consistent with the needs of the business.
• The detailed job description provided in the LMIA application will be used to assess
whether the job offer is consistent with the needs of the business.
• For documentation details, see Legitimate
(https://www.canada.ca/en/employment-social-development/services/foreign-
workers/business-legitimacy.html)
 Transition Plan

• A Transition Plan is a mandatory requirement to hire

temporary foreign workers in high-wage positions.
• Employers seeking to hire high-wage temporary foreign
workers will be required to submit transition plans to
demonstrate how they will increase efforts to hire Canadians
and PRs, including through higher wages, investments in
training and active recruitment efforts in the Canadian
labour market.
 Transition Plan Exemptions
• The Transition plan requirement does not apply for some
positions:
• Caregiver
• Primary agriculture occupations
• Specialize occupation under Quebec’s facilitated LMIA
process
• Certain limited duration positions where the job is time-
limited in nature
• Unique skill – e.g. NOC 00 occupations
 Minimum Recruitment Requirements
• Before applying for a LMIA, the employer must conduct at least three different recruitment
activities (refer to next slides).
• If the employer chooses to use an alternative method, he/she must submit a written rationale
and explanation of the alternative method.
• Also conduct at least TWO additional methods of recruitment that are consistent with the
occupation (targets an audience that has the appropriate education, professional experience
or skill level required for the occupation).
• Effective August 28, 2017, each of the methods used must target a different underrepresented
group: Indigenous persons, vulnerable youth, newcomers, and persons with disabilities
• One of the methods used must be national in scope, and easily accessed by residents of any
province or territory, as people in high-wage positions are often mobile and willing to re-locate
for work.
• The employer must keep records of the recruitment and advertising efforts for a minimum of
six years.
 Methods of Recruitment
•Acceptable methods of recruitment for a job advertisement include:
•general employment websites
•online classified websites
•specialized websites which are dedicated to specific occupational profiles
(for example, accounting, marketing, biotechnology, education, engineering)
•local, regional and national newspapers or newsletters
•local stores, places of worship, and community resource centres
•local, regional and provincial or territorial employment centres
•magazines and journals (for example, national journals or magazines,
professional associations magazines, specialized journals)
•(More on next slide)
 Methods of Recruitment
•participation at job fairs
•partnering with training institutions or offering internships
•professional recruitment agencies
•consultations with unions for available labour
•advertising through professional associations
•recruitment within the company (for example, considering internal
candidates for the position). A Human Resources Plan may outline the
training opportunities for existing employees, and include:
•a list of competencies for employees
•workshops or programs for professional development and career
management
•specific programs to target specific employees for advancement
 Job Match
•The Job Match service allows one to see anonymous profiles of registered job
seekers which correspond to the skills and requirements outlined in the job
posting.
•Each match is rated using a star system of one to five stars. The more stars
received by the match, the greater the compatibility between the advertised
position and the anonymous job seeker.
•The employer must select the ‘’default’’ option. This option allows matches
with job seekers from a wide variety of background as opposed to the ‘’strict’’
matching mode, where matches may be limited to fewer job seekers.
•When seeking to fill a high-wage position, the employer required to invite all
job seekers matched within the first 30 days of the job advertisement to apply
for the position if they are rated four stars or more.
 Job Advertisement Duration

• The employer must ensure that the job advertisement:

• is for a minimum of four consecutive weeks within the three
months prior to submitting a LMIA application
• At least one of the three recruitment activities to seek qualified
Canadians and permanent residents must be ongoing until the
date a positive or negative LMIA has been issued.
 Job Advertisement Information
• The required job advertisement information includes:
• company operating name
• business address
• title of the position
• job duties (for each position, if advertising is for more than one
vacancy)
• terms of employment (for example, project based, permanent
position)
• language of work
• (see next slide)
 Job Advertisement Information
• wage (must include any incremental raises, performance pay or
bonuses)
• a wage range can be used for the purposes of complying with
the advertisements; however the minimum wage in the range
must meet prevailing wage
• benefits package offered (if applicable)
• location(s) of work (local area, city or town)
• contact information, including telephone number, cell phone
number, email address, fax number, or mailing address
• skills requirements (includes education and work experience)
 Proof of Advertisement
• The employer must demonstrate that he/she has made efforts to
recruit qualified Canadians and PRs by providing these documents as
proof of advertisement with the application:
• a copy of the advertisement and information to support where, when
and for how long the position was advertised
• proof that the print media and websites used to advertise target an
audience that has the appropriate education, professional experience
or skill level required for the occupation
• proof of other recruitment activities (for example, invoice from Job Fair)
Program Requirements Unique to Low-wage
Positions
• Cap on proportion of low-wage positions
• If hiring temporary foreign workers and offering them a wage that is
below the provincial or territorial median hourly wage, the employer is
subject to a cap on the proportion of temporary foreign workers that the
employer can hire in low-wage positions at a specific work location.
• The cap, implemented on June 20, 2014, was phased in to provide
employers time to transition to a Canadian workforce which means that
they are limited to a:
• (see next slide)
 Calculating the Cap
• 20% cap on the number of temporary foreign workers in low-wage
positions, or the employers’ established estimated cap (whichever
is lower), if they hired a temporary foreign worker in a low-wage
position prior to June 20, 2014
• 10% cap on the number of temporary foreign workers in low-wage
positions if the employers did not employ a temporary foreign
worker in a low-wage position prior to June 20, 2014
• To calculate the cap, the employer must complete the Cap for Low-
wage Positions section of the LMIA application form. The employer
may be asked to provide documentation, such as payroll records, to
support the information provided.
 Exemptions to the Cap
• Exemptions include applications for:
• on-farm primary agricultural positions
• caregiving positions
• positions for which the employer is submitting an application to support a
temporary foreign worker’s permanent residence under an Express Entry Program
• low-wage positions, if the business has fewer than 10 employees nationally,
including the vacant positions the employer is applying to staff with temporary
foreign workers
• highly mobile or truly temporary positions (120 calendar days or less); this duration
could be extended on a case-by-case basis if it can demonstrate that the peak
season, project or event operates beyond 120 calendar days
• low-wage positions in seasonal industries that do not go beyond 180 calendar-days
 Transportation, Housing, Health Care
• The employer must pay for the round trip transportation costs for temporary
foreign workers to arrive at their work location in Canada at the beginning of
their work period, and to return to their country of residence at the end of
their work period.
• The employer must provide or ensure that suitable and affordable housing is
available for the temporary foreign worker.
• The employer must ensure that the temporary foreign workers they want to
hire in low-wage positions are covered by private, provincial/territorial health
insurance from the first day they arrive in Canada or pay for the equivalent
private health insurance until the temporary foreign workers become eligible
for the provincial/ territorial health plan.
 Qualifying Offer of “Arranged Employment”
• The EE system has specific requirements for prospective employers, who must
provide a job offer supported by a LMIA issued by ESDC
• No processing fee for a LMIA for a permanent job offer to a foreign worker under
Express Entry
• Requirements for a valid job offer that are supported by a positive LMIA depend
on the class
• FSW class: must be for at least one year, permanent, non-seasonal, full-time,
and at skill type 0(managerial occupations) or skill level A(professional
occupations) or B(technical occupations and skilled trades) on the NOC list;
• FST class: must be at skill level B;
• In FSW point system, according to IRPR, s 82 , the visa officer may award 10 pts if
the principal applicant provides proof of a valid job offer obtained from ESDC,
generally in the form of a LMIA.