Labour Market Impact Assessment
What Is LMIA?
Labour Market Impact Assessment is a document issued by Employment and Social Development Canada (ESDC).
Every employer must get an LMIA approval from ESDC before hiring any foreign worker. They must provide a copy of the LMIA report to the candidate for helping to obtain a work permit in Canada. Besides, LMIA is mandatory for applying for a closed work permit. LMIA can be avoided when the work permit in question is an open work permit.
The labor market impact assessment determines how the hiring of a foreign worker would impact the labor market of Canada. The employers must get a positive LMIA report from the ESDC to successfully hire a foreign candidate. It means the hiring should not create any job loss for any Canadian resident or citizen. The positive LMIA also signifies that the role for which the foreign candidate is being hired could not be fulfilled by any Canadian resident or citizen.
It is also required for employers to advertise the jobs in various job boards of Canada to make sure that no deserving Canadian candidate loses the opportunity. Once all the conditions are fulfilled only then the positive LMIA report will be provided to the ESDC.
Criteria for the Labour Market Impact Assessment (LMIA)
The employers should follow the given requirements to apply for LMIA:-
- $1000 applicate processing fee should be paid
- Present necessary proves that confirms your business’s legitimacy
- Must follow the minimum wage requirements
- Valid proves to support your workplace safety
- Must submit valid evidence to verify your efforts made for hiring a Canadian citizen or the available permanent residents
In certain conditions, an employer is exempted from Labour Market Impact Assessment requirements. With this exemption, Canadian employers can hire temporary foreign workers without the mandatory LMIA.
Immigration, Refugees, and Citizenship Canada (IRCC) along with the ESDC run the International Mobility Program (IMP) in which the LMIA exemptions are mentioned.
Conditions for an LMIA exemption:-
- If Canadian citizens or permanent residents get corresponding benefits from the exemption
- There are economic and cultural advantages
Requirements of the employer for IMP:-
When a Canadian employer is looking to hire a foreign individual through International Mobility Program, there are certain requirements.
- The employer has to confirm the position/job in the offer is entitled to the LMIA exemption
- A compliance fee of CAD $230 has to be paid to the employer
- The employer has to submit the offer of employment through the Employer Portal in IMP
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