What is LMIA?
Labour Market Impact Assessment
Labour Market Impact Assessment
The Labour Market Impact Assessment (LMIA) process assesses the impact of hiring foreign workers on the Canadian labour market and workforce.
When intending to hire a foreign worker, a Canadian employer must demonstrate that no existing Canadian (citizen or PR) qualifies for the available job vacancy and that it can only be filled by a foreign worker.
Every Canadian employer is responsible for obtaining this LMIA document (formerly known as a Labour Market Opinion – LMO) for most of the programs before making a foreign hire, however, there are few programs which do not require LMIA.
The Employment and Social Development Canada (ESDC) examines and validates an employment offer. This is done primarily to ensure that the Canadian job market is not negatively impacted. It has been discovered that receiving a positive LMIA is more likely if it is located in a major Canadian city. A specialist position with a high wage is more likely to receive a favourable LMIA.
LMIA Application Requirements
Business Legitimacy Documents: Records attesting to the fact that the employer is a legitimate Canadian company. The employer has the ability to fulfill the terms of the job offer and is in compliance with federal or provincial/territorial laws.
Recruitment Efforts: Prior to appointing a TFW, businesses must demonstrate that they made considerable efforts to fill the position with Canadian citizens and permanent residents.
Wages: Applications must include details on TFW wages. By separating high-wage jobs from low-wage jobs, this will guarantee that TFWs are compensated equally for their labour as their Canadian counterparts.
Safety at Work: TFWs have the same rights to a safe workplace as Canadians in comparable positions. Employers must therefore demonstrate that TFWs will have insurance that is at least comparable to the health coverage offered by the province or territory where the business is located.