LMIA stands for Labour Market Impact Assessment. However, the old name of LMIA remains LMO i.e. Labour Market Opinion. It is a document issued by the Employment Social and Development Canada (ESDC) to determine the impact of hiring a foreign national worker in Canada.
In other words, the document monitors whether employment of a foreign worker is to be permitted or not by the ESDC.
- To approve an LMIA is an investigation process assured by the ESDC that the employer made serious efforts to publish the job vacancy within Canada.
- No. Of Canadians interviewed for the position.
- Reason of rejecting the considered Canadian workers.
- Is the salary of the foreign worker in harmony with the average for the profession in the very area of the required position.
- Are the working conditions consistent with the labour laws and Collective Bargaining Agreements.
- Does the area where the position is located has a labour shortage for the position?
- Is the company suffering from an ongoing labour dispute?
- Does the foreign worker exhibit abilities to be able to transfer expertise to Canadians?
- Will hiring the foreign worker help in creating or retaining jobs for Canadian workers?
- Finally, will the foreign worker be an employee of the Candian Employer who would work on a predetermined wage for a full-time job.
IF the ESDC approves the LMIA to the employer, it becomes a POSITIVE LMIA. This means that there is no Canadian resident available to fit the position of the required work. The rejected LMIA becomes the NEGATIVE LMIA. It suggests hiring of available Canadian workers for the job.
PROCESS OF APPLICATION:
The first and foremost fact to be reckoned by ESDC is that no foreign national can apply for LMIA. Only Canadian employers can apply for LMIA 6 months prior to the actual date of starting the work.
Secondly, the foreign worker must apply for Citizenship and Immigration Canada (CIC), for actual work permit.
Again procedure of application varies depending on the wage of the person being hired. Employer must refer to the median hourly wages of their province to assess the position of the worker as Low – waged or High – waged.
Low-wage positions will ask the employer to satisfy some special criteria.
PROCESSING FEE FOR LMIA:
According to TFWP ( Temporary Foreign Workers Program ) , a processing fee of $1000 CND must be tied to each application of LMIA.
Apart from that, a “ Privilege Fee” of $100 CND is also required.
How long will it take for ESDC to hand you your LMIA ?
Officially speaking, ESDC takes 10 business days to approve LMIA application. However, the 10 days process is only for jobs in high demand, jobs offering wages in the top 10% of wages earned by Canadians in that province and for jobs with a short duration work period (less than 120 days). Plus, it is a bonus if the LMIA is to assist an EXPRESS ENTRY candidate.
- BUSINESS DOCUMENT LEGITIMACY
Documents that prove the legitimacy of the Canadian Employer.
- RECRUITMENT EFFORTS
The Canadian employer must have published the job vacancy for the Canadian residents four weeks prior to the LMIA application.
The employer must have used at least two other methods of recruitment other than advertising on the Canadian Job Bank website. Under represented Canadians must be focused.
It must be economically proven that the region that has the job vacancy has an annual unemployment rate of over 6%.
- TRANSITION PLAN
Also, the Employer must have evidence that the company has plans to decrease their reliance on TFW.
- CONSISTENT HEALTH FACILITIES
The health facilities and insurance offered to TFW should be in accordance with the same offered to Canadian workers in the same position and place.
- HOUSING AND TRANSPORT EXPENSES OF LOW-WAGE WORKERS
must be supported by the employers.
Province of Quebec and Global Talent Stream (GTS) and such other organizations aid in facilitated LMIA. The TFW may skip LMIA requirement altogether or enjoy facilitated LMIA.