Canada: HR Toolbox – What Is An LMIA?

A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada sometimes needs before they can hire a Temporary Foreign Worker.

An LMIA confirms that an employer has a need to hire a Temporary Foreign Worker, that there are no qualified Canadians or Permanent Residents available to fill the role, and that the employer can pay the offered wage. An employer will need an LMIA to hire a Temporary Foreign Worker unless the prospective employee qualifies for an LMIA exemption under the International Mobility Program or is exempt from requiring a work permit.

LMIAs are issued by Employment and Social Development Canada (ESDC). Among the various LMIA application streams are the High-Wage, Low-Wage, and Global Talent Streams:

High-Wage Workers

The High-Wage Stream is for employers looking to hire Temporary Foreign Workers who will be earning at or above the provincial or territorial median hourly wage. Importantly, before applying for an LMIA, most employers must demonstrate that they have already tried to locate qualified Canadian Citizens or Permanent Residents for the position they are looking to fill. Recruitment efforts must be conducted using a variety of methods that meet the requirements of the Temporary Foreign Worker Program. During this recruitment period, the employer must review incoming applications and provide detailed reasons why Canadians and Permanent Residents are not available. Employers under this stream can request an employment duration for a Temporary Foreign Worker of up to 3 years, and in most cases, must commit to a "Transition Plan" to decrease reliance on the Temporary Foreign Worker Program in the future.

Low-Wage Workers

The Low-Wage Stream is for employers looking to hire Temporary Foreign Workers who will be earning less than the provincial or territorial median hourly wage. Similar to an application under the High-Wage Stream, employers must first undertake recruitment efforts to attempt to find Canadian Citizens or Permanent Residents for the job. Employers under this stream can only request an employment duration for a maximum of 2 years. Employers should remember that Low-Wage LMIAs carry additional employer compliance obligations, including the requirement to pay for roundtrip transportation to Canada and back to the Temporary Foreign Worker's home country at the end of their work permit, and to ensure that Temporary Foreign Workers have suitable and affordable accommodation in Canada.

Global Talent Stream

The Global Talent Steam includes two (2) categories of applications, both of which qualify for an expedited 2-week processing service standard. Category A is for innovative firms that are referred to ESDC by designated referral partners. These firms must be seeking to fill a unique and specialized role to help grow their business. Category B is available to firms that need to fill in-demand, highly skilled positions on the Global Talent Occupations List.

Under the Global Talent Stream, employers are not required to undertake recruitment efforts, and instead must commit to a series of commitments that will benefit the Canadian labour market in a Labour Market Benefits Plan. Similar to the High-Wage Stream, employers who apply under the Global Talent Stream can request an LMIA employment duration of up to 3 years.

Each LMIA stream has different requirements and conditions, and it is important for employers to understand the differences and their specific compliance obligations.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.