Read ahead to learn the top 5 crucial details of Labour Market Impact Assessments in Canada. Certain foreign national workers in Canada must get their LMIA done if they intend to work there. However, some of them might be exempt from showing an LMIA.
LMIA is a special document used by Canadian employers before they recruit a temporary foreign worker. One must obtain this document before the foreign worker submits a work permit application. This is because having an LMIA will prove that the foreign national coming to work in Canada will either have a positive or neutral influence on the labor market in Canada.
Jobs exempt from an LMIA don’t need a document from the employer to assist a foreign worker’s work permit application. IRCC’s latest announcement about the reduction of Canada’s temporary resident population in the upcoming three years has led several people to expedite their Canadian journey.
Top 5 crucial details of Labour Market Impact Assessments
Below are the top 5 crucial details of LMIA in Canada:
Understanding LMIA
The approved LMIA documents affirm that the Canadian employer has the legal authority to hire a foreign worker. In addition, when an employer gets a positive LMIA, it is referred to as a confirmation letter.
The LMIA requirement
Until and unless an employer is eligible for an exemption from LMIA, they will need to recruit foreign national workers. LMIA exemptions and needs rely on multiple factors. The LMIA process can be a laborious method, and it requires ample detailed analysis of supporting documents. Further, the employer in Canada must fulfill the following conditions to acquire a positive LMIA:
Demonstrating their inability to fill the job vacancy locally
A Canadian employer must demonstrate that he made significant efforts to fill the job vacancy locally. This implies that he must have posted publicly about the job vacancies for at least four consecutive weeks. They must prove this before applying for an LMIA online through the Government’s job site, known as JobBank. In addition, they could present proof in the form of paid platforms or supporting documents.
Present a Transition Plan or Labour Market Benefits Plan
Employers in Canada must be able to showcase a transition plan to be submitted along with the LMIA application. This transition plan must explain the process through which the employer seeks to hire workers, and retain and train the PR holders and Canadians to prevent their dependency on the Temporary Foreign Worker Program. In addition, the high-skilled jobs under the Global Talent Stream will require employers to create a labour market benefits plan, explaining the process of recruitment of a highly-skilled foreign national will be advantageous for the labour market in Canada.
The following are the exemptions:
- Caregivers
- Time-restricted jobs in Canada, including emergency repair work
- Job positions that come under the Agricultural Stream and the Seasonal Agricultural Worker Program.
- Special skills possessed by specific people only, such as Senior Managers; TEER Level 0.
Signing an employment agreement
The temporary foreign worker and the Canadian employer must arrange an sign an employment contract to make sure all parties understand their rights and regulations. The TFW must sign an agreement before coming to Canada.
Low-waged positions – Fulfill additional requirements
They must arrange work advantages, including affordable housing, transportation, and healthcare for foreign workers at low-wage positions. Moreover, the ESDC might also carry out investigations to make sure that employers comply with these parameters.
LMIA application fees payment
Employers will need to pay an amount of CAD 1,000 as a processing fee for the digital LMIA application. However, they might get an LMIA-exemption if they get recruited via the Caregiver Stream and the Agriculture Worker Streams. Canada’s LMIA has a validity of six months after its issuance to a Canadian employer.
Crucial details about a new Labour Market Impact Assessment for work permit extension
When a foreign national submits an application for a Canadian work permit, they must provide a valid LMIA. Put simply, even though a work permit can last longer than the LMIA approval, the foreign worker must apply for the work permit while the LMIA is still valid. Additionally, if the LMIA for a foreign worker expires, their employer will need to get a new one before the worker can apply for another work permit or extend their current one in Canada.
Furthermore, if an employer seeks a new LMIA, they must know that ESDC will commence the evaluation procedure from scratch. Also, for ESDC, it will be a new application. Therefore, ESDC will now have the right to ensure that there are no PR holders or Canadian citizens left to fill the vacant job positions instead of TWFs. This will be a part of the new application procedure.
Is there an LMIA requirement for working in Canada as an entrepreneur?
No LMIA requirement exists for someone looking forward to working in Canada as an entrepreneur. However, foreign nationals arriving there must make sure that their business in Canada will:
- Establish or maintain significant benefits related to social, cultural and economic aspects. OR
- Maintain or develop job positions for PR holders and Canadian citizens.
In addition, private entrepreneurs might get an exemption from the LMIA requirement if they seek to begin or run a business in Canada. These types of program applicants must ensure that they either hold sole ownership or at least hold maximum ownership of the business they seek to establish in this country.
Moreover, entrepreneurs will qualify for LMIA exemption only if they can prove that their work is temporary in nature. This category is specifically appropriate for seasonal business owners.
Can LMIA ensure more CRS points for Express Entry applicants?
Although CEC candidates don’t have an LMIA requirement to gain eligibility for an economic immigration program, it might be advantageous for such candidates and Express Entry candidates to still show an LMIA through their employer.
A valid employment offer with LMIA will provide the candidates with extra CRS points as Express Entry applicants.
Accordingly, candidates with LMIA requirements can enhance their chances of acquiring an ITA for PR in Canada from IRCC.
Latest updates related to LMIA by IRCC
On March 21, Marc Miller and the employment minister declared multiple modifications to the TFWP. These changes include two ministers declaring the validity period of LMIA would resume to the standard period of six months. This change will begin on May 1, 2024.
Before this policy update, Canada temporarily converted LMIA validity for twelve months during the pandemic phase. This initiative exists to improve the labour market conditions in Canada.
Knowing about these top 5 crucial details of Labour Market Impact Assessments will help one understand them better.
Our immigration representatives at Make Home Canada have immense knowledge related to Canadian immigration. To clarify your doubts or queries, you may write to us at [email protected]
