Labour Market Impact Assessment (LMIA) Process in Canada

Working in Canada comes with its unique set of rules and documents, one of which is the Labour Market Impact Assessment (LMIA). For Canadian employers, the LMIA serves as a crucial prerequisite before hiring foreign workers. It’s a document provided by Employment and Social Development Canada that indicates the need for a foreign individual to fill a specific job because a suitable candidate couldn’t be found within Canada.

In this article, we will guide you through the essentials of LMIA in a simple manner. You will gain insights into who needs it, how to obtain it, and what happens after it’s approved. We will even explore methods to speed up the process. So, whether you are an employer seeking international talent to grow your team or a worker dreaming of a new chapter in Canada, join us as we uncover the details of the LMIA process.

Table of Contents

• What is a Labour Market Impact Assessment (LMIA)?
• When do Labour Market Impact Assessments Expire?
• Who needs a Labour Market Impact Assessment?
• LMIA Exemption Codes
• Securing Canadian CRS Points: Valid Job Offer & LMIA Requirements
• Regulatory Authorization to Work without a Work Permit
• How to get an LMIA?
• What happens after LMIA is Approved?
• FAQs on Labour Market Impact Assessment

What is a Labour Market Impact Assessment (LMIA)?

A Labour Market Impact Assessment (LMIA) is a crucial document Canadian employers require before engaging a foreign worker. This document is provided by Employment and Social Development Canada (ESDC) which evaluates the effect of employing a foreign individual in Canada. When the LMIA is positive, it signifies the unavailability of a Canadian citizen or permanent resident for a job, allowing the employer to hire a foreign national. At times, a positive LMIA is also called a confirmation letter. Conversely, a negative LMIA suggests that a Canadian citizen or permanent resident should fill the position.

Employers seeking to hire a foreign worker must initiate the Labour Market Impact Assessment application process. Following the acquisition of the LMIA, the worker can proceed to apply for a work permit. To obtain a work permit, the worker need:

• A job offer letter
• A contract
• A copy of the LMIA
• The LMIA number

When do Labour Market Impact Assessments Expire?

Until April 30, 2024, LMIA remains valid for up to 12 months from the date of issuance. Starting May 1, 2024, an LMIA will be valid for up to 6 months from the date of issuance.

The expiration date of an LMIA signifies the timeframe within which:

• Employers are required to inform the temporary foreign worker of the LMIA’s approval.
• Employers must send the positive LMIA letter to the temporary foreign worker.
• Temporary foreign workers need to initiate the application process for a work permit at Immigration, Refugees and Citizenship Canada (IRCC).
• Employers who have not included the names of temporary foreign workers in their LMIA applications must continue to try to recruit Canadians and permanent residents until they select a temporary foreign worker.

Failure to complete the aforementioned steps within the validity period makes the LMIA invalid, requiring employers to submit a new LMIA application to hire a temporary foreign worker.

Who needs a Labour Market Impact Assessment?

Certain employers hiring temporary workers must obtain a Labour Market Impact Assessment before the worker can apply for a work permit. This section covers essential details about the LMIA, necessary for certain employers looking to hire temporary workers from outside Canada. It also includes valuable information for individuals seeking job opportunities in Canada,  guiding both employers and workers through the LMIA process.

For Employers

Before hiring someone from another country for a temporary job, most employers need to get an LMIA. Check if you need an LMIA before you start hiring.

An LMIA validates two key aspects:

• Requirement for a temporary foreign worker.
• Unavailability of Canadians or permanent residents for the job.

To determine if you and the temporary foreign worker you wish to hire are exempt from needing an LMIA or work permit, take one of the following actions:

• Check the LMIA exemption codes and work permit exemptions (given below).
• Choose the LMIA exemption or work permit code that best fits your hiring scenario and read the detailed description.
• If an exemption code applies to you, ensure to include it in your job offer. (OR)
• If you are hiring a temporary foreign worker who is currently outside Canada, you can contact the International Mobility Workers Unit. This also applies even if the worker is from a country whose nationals are exempt from needing a visa.

For Workers

Generally, most individuals require a work permit to work in Canada. If you find that you need a work permit, you might be eligible for either:

• An employer-specific work permit, or
• An open work permit.

To gain clarity on:

• Whether you need a work permit.
• Identifying the right kind of work permit for your circumstances.
• Any specific instructions needed for the application process.

You can utilize this tool to guide you through the process.

LMIA Exemption Codes

Under various legislative sections, distinct LMIA exemption codes are assigned to cater to different scenarios. These codes serve to exempt individuals from the requirement of a Labor Market Impact Assessment for certain situations. They are guided by specific rules and policies established by Canadian immigration authorities.

The LMIA exemption codes are listed in the following tables, presenting a breakdown of codes related to different immigration policies and scenarios.

A25.2: Public policies

The following is an overview of the key public policies issued under A25.2, highlighting the different LMIA exemption codes and their respective timelines for implementation.

R204: International agreements or arrangements

The following details the LMIA exemption codes under R204(a) and their respective regulations, categorizing and outlining the diverse categories of exemptions for international personnel.

R204(b) Provincial/territorial-international exemption codes

At present, there are no agreements currently approved within the Provincial/Territorial International Exemption Codes under R204(b).

R204(c) Canada-provincial/territorial exemption codes

R204(c) covers LMIA exemptions for Canada’s provincial and territorial nominations, significant investments, and exceptional events (e.g., natural disasters), and includes the Atlantic Immigration Program.

R205: Canadian interests

R205(a) outlines special work situations and exemptions benefiting Canada. It covers roles like foreign physicians, self-employed business owners, and experts working in unique fields, providing substantial value to Canadian interests.

R205(b) Reciprocal employment exemption codes

R205(b) covers reciprocal employment exemptions, specifically for unique work roles like fishing guides, coaches, and international exchange programs. These exemptions streamline work arrangements between Canada and other nations for individuals in these roles.

R205(c) Designated by Minister

R205(c)(i) focuses on research-related LMIA exemption codes. It covers roles in research and educational cooperatives at both post-secondary and secondary levels. These exemptions aim to facilitate research and educational opportunities in Canada.

R205(c)(ii) highlights LMIA exemption codes related to competitiveness and public policy. It covers various categories, including spouses of high-skilled workers, post-graduates, medical residents, and more, with the aim of supporting the competitiveness and public policy goals of Canada.

R205(d) pertains to LMIA exemption codes for charitable and religious work. This category helps people doing religious or charity work by giving them special permission that supports their contributions to these important activities.

R206: No other means of support

R206 deals with situations where people have no other way to get support. It gives exemptions to specific groups like refugee claimants and those facing an unenforceable removal order. This helps them access support when they have no other options.

R207: Permanent residence applicants in Canada

R207 covers LMIA exemption codes for people applying for permanent residence in Canada. It includes various individuals like live-in caregivers, spouses, protected persons, and their family members. These exemptions help these individuals on their journey to become permanent residents.

R207.1: Vulnerable workers

R207.1 deals with LMIA exemption codes for vulnerable workers and their families. These exemptions aim to support and protect workers who might be at risk in their jobs, ensuring their safety and rights are preserved.

R208: Humanitarian Reasons

R208 covers LMIA exemption codes for humanitarian reasons. It includes exemptions for destitute students and individuals holding a temporary resident permit for at least six months. These exemptions aim to assist in humanitarian situations and support those facing specific challenges.

Securing Canadian CRS Points: Valid Job Offer & LMIA Requirements

Securing additional points within Canada’s Express Entry system through a valid job offer is based on specific criteria. These include:

• 50 Points: Most job offers meeting specific criteria, including full-time employment, one year’s duration, and LMIA in a skilled field.
• 200 Points: Limited to specific senior positions available only for Canadian citizens.

Criteria for Claiming Points

You can claim points for a job offer if:

• Your job is full-time, paid for at least one year, and in a skilled field with an LMIA.
• Your employer has a positive LMIA naming you, or you are already working for the employer on your work permit.
• You have a valid work permit for an LMIA-exempt job and meet certain experience and duration criteria.

Important Considerations

In seeking additional points through a job offer within the Express Entry system, it’s crucial to note the following:

• Necessity of an LMIA or LMIA-Exempt Occupation: Qualifying for these additional points mandates having either a job offer supported by an LMIA or one falling within the LMIA-exempt category.
• Limitations with Open Work Permits: CRS points for a job offer cannot be obtained with an open work permit, such as the PGWP, without the employer providing an LMIA.

Regulatory Authorization to Work without a Work Permit

The section includes a comprehensive list of categories (R186 and public policies) under the International Mobility Program. These include various professions and scenarios where individuals are permitted to work in Canada without needing a separate work permit.

Check general information and essential details about employment under the International Mobility Program without requiring a permit.

• R186(a) – Business visitors
• R186(b) – Foreign representatives
• R186(c) – Family members of foreign representatives
  – Locally engaged staff of diplomatic and consular missions and international organizations: Reciprocal employment (LMIA exemption code C20)
• R186(d) – Military personnel
  – Military personnel and family members
• R186(e) – Foreign government officers
• R186(f) – On-campus employment
• R186(g) – Performing artists
  – Artistic and performing arts occupations – Authorization to work without a work permit (International Mobility Program)
• R186(h) – Athletes and team members
• R186(i) – News reporters, media crews
• R186(j) – Public speakers
• R186(k) – Convention organizers
  – Sales
• R186(l) – Religious leaders
• R186(m) – Judges, referees, and similar officials
• R186(n) – Examiners and evaluators
• R186(o) – Expert witnesses or investigators
• R186(p) – Short-term students in a foreign healthcare program
  – Immigration medical examination: Health care students who are work permit-exempt
• R186(q) – Civil aviation inspector
• R186(r) – Aviation accident or incident inspector
• R186(s) – Crew
• R186(t) – Emergency service providers
• R186(u) – Pending decision on work permit renewal
• R186(v) – Off-campus work
• R186(w) – Transition to work permit
• R186(x) – Registered Indians

Public policy authorization to work without a permit

The Public Policy section outlines specific exemptions enabling work in Canada without a permit. 

• Public policy: Short-term work permit exemption
• Public policy: 120-day work permit exemption for researchers

Registered Indians

According to paragraph 186(x) of the Immigration and Refugee Protection Regulations, individuals recognized as registered Indians as per the Indian Act are not required to apply for a work permit.

For additional details about confirming registered Indian status, refer to section 10, which covers the examination of individuals registered under the Indian Act at ports of entry, found in ENF 4: Port of entry examinations (PDF, 1.6 MB).

How to get a Labour Market Impact Assessment?

To obtain an LMIA, you need to make a request to Employment and Social Development Canada (ESDC). The process for applying for an LMIA relies on the specific program through which you are planning to hire. Discover how to seek an LMIA to employ:

• High-wage workers
• Low-wage workers
• Workers via the Seasonal Agricultural Worker Program
• Workers via the Agricultural Stream

What happens after Labour Market Impact Assessment is Approved?

Once the LMIA application is reviewed, employers will receive the decision. If it’s a positive LMIA, the employer can move forward and hire a foreign national. But if it’s a negative LMIA, the employer isn’t permitted to hire a foreign national. Positive LMIA decisions are valid for 6 months from the date they are issued. After getting a positive LMIA, the employer needs to inform the foreign national so they can apply for their work permit or permanent residence.

In some cases, employers can request to speed up their LMIA application, aiming for processing within 10 days. To be eligible for this faster process, the employer should be outside Quebec and meet one of these conditions:

• Highest-paying jobs: Salaries within the top 10% of what Canadians earn in that province/territory.
• Skilled Trades: Paid at least the average wage for that position in the province/territory.
• Short-term positions: Jobs lasting 120 days or less.
• Express Entry: LMIA supports an Express Entry candidate.

FAQs on Labour Market Impact Assessment

Following are some of the frequently asked questions and their respective answers related to the Labour Market Impact Assessment:

Q. What is LMIA Canada?
A. An LMIA, or Labour Market Impact Assessment, is a crucial document required by Canadian employers who are planning to hire a foreign worker. A positive LMIA indicates the need for hiring a foreign worker for a specific job. It also shows that there are no Canadian citizens or permanent residents available to fill the position.

Q. Can LMIA lead to PR?
A. Getting a positive LMIA doesn’t mean skilled foreign workers can automatically move to Canada. But if they want to become permanent residents, they have to follow all the rules in the Express Entry immigration process.

Q. Who is eligible for LMIA in Canada?
A. Any employer in Canada seeking to hire a foreign worker can apply for a Labour Market Impact Assessment if they can’t find a Canadian citizen or permanent resident to fill the role. This applies to both small businesses and large corporations.

Q. Can LMIA be rejected?
A. Under Ministerial Instructions, ESDC might reject a Labour Market Impact Assessment application based on specific public policy considerations. These could include low-wage positions above the current cap and in-home caregiver roles with live-in requirements. Or any position if the employer previously had an LMIA revoked within the last 2 years.

Q. How can I get an LMIA work permit?
A. The Canadian employer needs to apply for the LMIA through ESDC to get the LMIA. Upon approval, the foreign worker can then initiate the work permit application. However, simply obtaining an LMIA approval is insufficient to bring a foreign worker to Canada; they must meet all the work permit requirements.

Also, check:

• Canadian Citizenship: A Step-by-Step Guide to Apply
• A Comprehensive Guide on Different Types of Visas in Canada
• A Comprehensive Handbook on Family Sponsorship Program in Canada
• Immigration Programs in Canada
• Intra-Company Transfer

We trust that this information on the “Labour Market Impact Assessment” has provided valuable insights. For further exploration on work permits, visit LooneyTooney.ca. Stay updated with the latest information and insights in this field!