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A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada needs to get before hiring a foreign worker.
A positive LMIA shows that there is a need for a foreign worker to fill a job. It also states that no Permanent Resident or Canadian Worker is available to do a specific job. A positive LMIA is at times called a confirmation letter. If the employer needs an LMIA, they must apply for one and once the employer gets the LMIA, the worker is eligible for applying for a work permit to Canada.
The LMIA (Labour Market Impact Assessment) process varies depending on whether the chosen employee is classified as “high-wage” or “low-wage”. Temporary foreign workers that are being paid under the provincial/territorial median wage are considered as low-wage, while those who are being paid at or above are considered high-wage. Further depending on whether a potential employee is classified as high-wage or low-wage, certain specific provisions apply.
In general, all Canadian employers must be capable of providing a shred of evidence that they have attempted to seek qualified Canadian citizens or permanent residents to fill in the job positions before turning to the foreign workers. In addition to this, the employers may be inspected for agreement with government regulations after their employee has begun working in Canada.
Under LMIA the different categories of workers that an employer can hire are:
- Low-Wage Workers
- Median Hourly Wages by province/territory
- High-Wage Workers
Factors considered while making an LMIA decision
- Impact of hiring foreign worker on the Canadian Labour Market
- Wages & Working Conditions offered to the foreign worker
- Whether a transfer of useful skills would result from hiring the foreign worker
Applying for LMIA(Labour Market Impact Assessment)
Have a glance at the various steps you need to take when applying for LMIA:
- Determine the Skill Level
- Meet minimum advertising requirements
- Meet or exceed the Median Wage Rate
- Check you meet the Eligibility Criteria for the same
- Check for any Special Conditions that apply
- Submit your application
- Contact your Foreign Worker
- Ensure the Foreign Worker meets all the requirements
The purpose of the LMIA is for employers to exhibit to the Canadian government that the hiring process of a foreign worker will not have any sort of negative impact on Canada's existing liveware. The federal department of Employment and Social Development Canada (ESDC) looks forward to ensure that the hiring of foreign workers will not replace existing workforce in Canada nor place any descending pressures on their wages.
Although the LMIA process is in order, there are various different LMIA-exempt work permits,arising from free trade agreements, such as the former North American Free Trade Agreement, now known as the Canada-United States-Mexico Agreement, or CUSMA. Along with this,there are employer-sponsored work permits, wherein a number of work permit options are available to foreign workers who do not have a job offer yet, which includes working holidays, post-graduate work permits, and open spousal work permits. Below discussed are the common scenarios under which one can work in Canada:
LMIA Required
Under this permit, employers require to obtain a Labour Market Impact Assessment as part of the process
LMIA Exempt
Under certain circumstances, individuals are allowed to work in Canada without obtaining an LMIA.
CUSMA
This Work Permit is issued under the Canada-United-States-Mexico Agreement (formerly NAFTA), allowing work without an LMIA
Intra-Company Transfers
Under this permit, a company is allowed to bring a few employees to Canada from its offices abroad without an LMIA.
Business Visitors
Under certain circumstances, business visitors may work in Canada without a work permit, as long as they meet a defined set of conditions and are not entering the Canadian labour market.
Post Graduation Work Permit
International students in Canada may work for up to three years after graduating from a Designated Learning Institution.
Requirements for Employers applying for LMIA:
Have a glance at the essential documents required by the employers for applying for LMIA in Canada
- a job offer letter
- a contract
- a copy of LMIA, and
- the LMIA number