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Canadian Labour Market Impact Assessments: Everything You Every Wanted To Know

By May 3, 2019 May 19th, 2022 No Comments

If you’re an employer in Canada, short of able working hands then there is always the solution to go for the Labour Market Impact Assessments. Your fellow Canadian’s immigration lawyer might have suggested this one, but you do not have much knowledge on this subject?

Well, not to worry, this blog will elucidate all the ‘know-hows’ of the following:

  1. Definition of Labour Market Impact Assessments. (LMIA)
  2. Qualifications of LMIA & Possible Challenges
  3. Changes in the LMIA.
  4. The LMIA Work Permit
  5. Do all TFWP Applicants Get a Job Offer Require LMIA?
  6. How to Acquire an LMIA for Express Entry?

So, without wasting more time,

Let’s Begin:

  1. Definition of Labour Market Impact Assessments. (LMIA). What is LMIA?

What is LMIA?

The Labour Market Impact Assessments or LMIA is a document issued by the Employment and Social Development Canada (ESDC) where they asses an employer’s request to invite foreigners to work in Canadian soil. This assessment is to mainly done to ensure that the immigrant invited to work in Canada would not have any negative impact on the economy.

Employers are required to submit a pile of documents stating the work position that they wish to grant the foreigner; the number of Canadians applying and why these citizens were not fit to fulfill that particular position.

The ESDC through this analysis will then consider the following:

  • Are every working condition stated down reliable with shared bargaining agreements and Canadian Labor laws?
  • Is there a shortage of worker for the position or area of the work?
  • Are the working conditions mentioned coordinating with the labor laws?
  • Has the employer in question undertaken requirement efforts to fill the position for vacant Canadians?
  • Will Canadians be able to retain jobs better with the hiring of foreign workers?
  • Will the Foreign worker be a consistent full time paid an employee of the respective Canadian employer?
  • Are these foreign workers capable of transferring the required skills to Canadians?

Now, depending on the factors employers need to acquire a positive LIMA. For example, for jobs in big Canadian cities with specialized positions, the chances of acquiring a positive LIMA is more. This positive LIMA acts like a confirmation letter that states indeed the position applied for has no able Canadians to fill its role.

This way the employer can apply for a work permit for allowing their respective immigrant worker to work h/her.

  1. Qualifications of LMIA & Possible Challenges

Labor Market Impact Assessment recently replaced the Labor Market Opinion or LMO as it is the first step to acquiring a work permit as aforementioned. The first step, however, involves, paying a processing fee of $1,000 CDN to the LMO for the request of hiring foreign helping hands. Additionally, the employer also has to pay a privilege fee of $100 CDN.

Now, the entire procedure is quite complicated and with the ESDC scrutinizing every aspect, the first job of employers is to gather the right documents in sequence. This is why it is required to consult an employment lawyer Canada to ensure no mistakes in the application.

Moving on, the next requirement to qualify for LMIA is fluency in English and French as these two are mostly used for job purposes. Apart from this, an employer needs to provide documentation that he/she posted job vacancies for Canadian workers at least 4 weeks prior to filling the LMIA application. These employers are also required to provide evidence that they have used two additional recruitment methods apart from just posting an ad on the Canadian Job Bank website.

On top of this, the employer has to provide proof of the need to hire foreign workers and also, offer consolation that hiring an alien worker won’t hamper Canada’s labor economy. Additionally, if a certain employer is requesting to hire a foreigner for a high-wage job, he needs to submit a transition plan to ESDC. This will underline his policies to stop relying on foreign workers in the future. Other requirements as stated an immigration lawyer Canada for such transition are:

  • Evidence of funding in skill training and hiring Canadian interns.
  • Evidence stating that the employer is assisting the immigrant in becoming a permanent residence.

Employers will further require attesting documents stating that they will not be responsible for cutting down average Canadian working hours for immigrants. Thus, to ensure no mistake is made in the application procedure, it is best to consult a Canadian immigration lawyer for making LMIA application foolproof.

On this note, an LMIA application may face rejection and limitation based on the following:

  • Under (NAIC) Under the North American Industry Classification System, certain jobs under Food Service, Accommodation and Retail Service fall under NAIC type 72, 44, or 45. These occupations are mostly for Canadian citizens and not immigrants.
  • The geographical location where the job posting is requested has an annual unemployment rate exceeding 6%.
  • The occupation listed in the National Occupation Classification is characterized under Skill Level D.
  1. Changes in the LMIA

Currently, Canadian LIMA is a hot topic that garnered scrutinized media coverage.  Even now certain changes in the LIMA are still effective as of 2019. With the due changes applied, at times it can be troublesome for an employer to exactly approach the ESDC. Hence, it is always best to keep a reputed immigration lawyer in Toronto handy. This lawyer is already acquainted with the changing rules of the LMIA and hence will assist you in framing a verified submission.

Now, consequent to applying for an LMIA, as mentioned the employer needs to wait for the ESDC’s approval. Once the LMIA goes through the above-mentioned criterions and meets these, the ESDC will issue a positive LMIA. This will confirm the need of the Canadian employer to hire a foreign helping hand.

On this note, one of the recent changes witnessed in the LMIA is its application fee. Previously, this fee was $275 per worker, and now it amounts up to $1000 per worker. Moreover, the new LMIA recognizes only two classifications, high-wage and low-wage. A low wage job is when the salary offered is less in comparison to the job performed, and high wage when the salary is more in comparison to the job role.

Changes in High-Wage LMIAs:

  • More extensive and through application forms for high wage LMIA’s. Hence, it is wise to consult an employment Toronto lawyer to understand every specification.
  • As aforementioned employers need to fill out an application and submit a transition plan explaining that they will find Canadian employees in the future.
  • Few applications will be screened quickly. These include highly paid workers featuring top 10% Canadian salaries, foreign workers in a skilled trade, working coming in for shorter time span, etc.
  • Employers are required to keep track of their respective foreign worker’s stay in Canada.

Changes in Low-Wage LMIAs

When it comes to low wage LMIAs the limitations are more restricted than that of high wage LMIAs. This is where a reputed LMIA lawyer can assist. For now, check out the specified changes:

  • Current reports state that a positive low wage LMIA will now allow employers to hire alien workers only one year at a time.
  • For employer’s whose workforces do not agree to this new rule transitional measures will be applied.
  • Only 10% of foreign workers allowed in organizations that have 10 or less employees.
  • Low wage salaries cannot now include employees for food, retail and recommendation sectors.
  • Similar to high wage applications, employers as mentioned above now need to pay a higher application fee for recruitment purposes.

A Note on the Changing Processing Time for LMIA’s

In previous instances, the processing time for LMIAs was quite unpredictable. Some would go on for months, while a few took less than 2 weeks. However, in recent cases, the (ESDC) Employment and Social Development Canada issued propagations to reduce the processing time for LMIAs to less than 10 business days. The succeeding categories that are processed within 10 days are given below:

  • Highest-paid among (top 10%) professions
  • Shorter work periods limited to 120 days or less
  • The LMIA occupation will mainly focus on skilled trades or highest-demand occupations.

Moving on, let’s discuss about,

  1. The LMIA Work Permits

Every foreign employer and worker needs to first undergo the two-step verification procedure get the work permit. First, they need to submit an application to the Employment and Social Development Canada for the LMIA. Secondly, they need to submit another application to the Citizenship and Immigration Canada (CIC) for the acquisition of the work permit.

Now, normally there are two types of work permit mainly offered to managers.

  • Employer-Specific Work Permits

Employer-specific work permits allow workers to work in accordance with their respective work permits which include the names of their employers, the work location, and the terms and agreements as to how long an employee can work.

  • Open Work Permits

The open work permit allows an employee to work for any employer in Canada, except for ones who are listed ineligible and employers who are infamous for offering strip-tease, erotic dances, escort services, etc.

Now, that this is covered, let’s move ahead in this blog,

  1. Do all TFWP Applicants Get a Job Offer Require LMIA?

Previously, the older LMO’s allowed the recruitment of certain Temporary Foreign Worker Program (TFWP) without an LMIA. Even now, certain work permits do not require an LMIA. These are as follows:

  1. Workers covered under the NFTA will not require an LMIA.
  2. Intra-Company Transferees do not require an LMIA.
  3. Post-Graduate holders of work permits won’t require LMIA
  4. Bridging open holders of work permits won’t require the above.
  5. Working holiday permit holders or International Experience Canada participants won’t be in need of an LMIA.
  6. Visiting professors, post-doctorate fellows, and academic exchange students are in not needed to provide an LMIA.
  7. Those under International Mobility Programs will not need to provide an LMIA.

On this note,

  1. How to Acquire an LMIA for Express Entry?

Issued by the Immigration, Refugees and Citizenship Canada (IRCC), Express Entry is a procedure that processes and manages applications received via Canada’s federal economic immigration programs.

Now, for any skilled professional foreign worker to gain Express Entry, he/she first needs to be granted a LMIA. Now, to get a Labour Market Impact Assessments for Express Entry, a Canadian employer needs to determine whether a foreign worker is needed since there is a scarcity of Canadian workers.

The process is difficult and complicated. Even theoretical explanations can sometimes not suffice to qualify for express entry. Hence, this is where a reputed Toronto immigration lawyer can help.

This lawyer will then guide an occupational employer to fill out the LMIA as per its requirements. Now, once a positive LMIA is offered to employers, the express entry employees can add this to their EE profile. This will garner that particular employee an excess of 50-200 points, under the EE’s Comprehensive Ranking System (CRS).

What is Comprehensive Ranking System (CRS)?

This Comprehensive Ranking System (CRS) allows certain points to be designated to various candidate profiles. The maximum score is 1,200, and participants who acquire scores close to the maximum score are shortlisted under EE pool.

Therefore, the additional points due to the LMIA make the candidate more probable to qualify for permanent residentship. This helps in getting a required work permit for immigrants.

On this aspect, if you find going through the entire procedure for LMIA complicated, the best option is the taking up the assistance of an immigration attorney.

Why Hire an Immigration Specialist for LMIA?

The process of acquiring a positive LMIA along with TWF occurs in multiple stages. Misusing this program leads to consequences like nullifying the application altogether. Moreover, the LMIA is continually under changes and thus, if an employer applies for the former without prior knowledge, he/she can face issues that prevent him/her to qualify for the Labour Market Impact Assessments altogether.

Hence, it is best to consult an immigration specialist Toronto who is well aware of the changing patterns of the labour assessment system. H/she will help in collecting the right documentation, along with framing the papers in sequences. Also, a lawyer will know just the type of application that will benefit your cause and need best.

Now, just understanding the perks of a lawyer isn’t enough. You need to also find the correct immigration lawyer.

Worry not!

Follow These Steps:

  1. Look for Website Credentials

When it comes to finding an immigration attorney who also specializes in LMIA application, you need to do thorough research. First, find out whether the attorney specializes solely in immigration or not? You don’t want to hire a family or a regular lawyer. These lawyers won’t have much knowledge on the basics of immigration and thus, can’t help you gain the work permit or LMIA.

Therefore, before selecting your lawyer, check website credentials and testimonials to find out if clients recommend them or not.

  1. Trust WOM ( Word-Of-Mouth)

As per online researches customers trust word of mouth 80% more than online testimonials. Word of mouth basically is positive certifications by satisfied clients who are praising a particular service provider. So, if you’re neighbor or relative suggest a reputed immigration lawyer Canada service as good, opt for that.

Well, there you go! Now, that you have got detailed know-how on Canadian Labour Market Impact Assessments get your lawyer and frame out your application today.