Labour Market Impact Assessment (LMIA)

A Labour Market Impact Assessment (LMIA) is a document that Canadian employers may need to obtain before hiring a foreign worker. The LMIA verifies that there is a need for a foreign worker to fill the job and that no Canadian worker is available to do so. The employer submits an LMIA application to Employment and Social Development Canada (ESDC). ESDC reviews the application, considering factors like the employer's recruitment efforts and the impact of hiring a foreign worker on the Canadian job market.

Eligibility Requirements

1. Prove the Need for a Foreign Worker

Employers must demonstrate that no qualified Canadian citizens or permanent residents are available to fill the position.

2. Advertising and Recruitment Efforts

Employers are generally required to advertise the job position for at least four weeks across multiple platforms (e.g., national job banks, local newspapers) and prove efforts to hire Canadians.

3. Compliant Employment Terms

The job offer must meet Canadian labor laws, including competitive wages and ensuring working conditions adhere to provincial and federal employment standards.

4. Ability to Pay the Employee

Employers must prove financial capability to pay the foreign worker and sustain business operations during employment.

5. Plan for Transition

For certain high-wage jobs, employers may need to provide a plan to reduce their reliance on foreign workers by training Canadians for these roles.

How to Apply for an LMIA

1. Determine Wage Level

Employers must determine whether the position falls under high-wage or low-wage, which affects the LMIA application process.

2. Prepare Required Documentation

Employers must gather documents such as proof of recruitment, financial documents, and the employment contract before submitting their LMIA application.

3. Submit Your Application

Fill out the appropriate LMIA form (high-wage or low-wage) and submit it to ESDC with a fee of CAD 1,000 per application.

4. Wait for ESDC Review

ESDC assesses the LMIA by reviewing recruitment efforts and the impact on the labor market, while ensuring compliance with labor standards.

5. Receive LMIA Decision

If approved, the employer receives a positive LMIA allowing them to proceed with hiring the foreign worker. A negative LMIA will include reasons for rejection.

6. Provide LMIA to the Worker

The employer provides the LMIA to the foreign worker, who can use it to apply for a work permit or support their immigration application.