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LMIA Based Work Permits

IMC Immigration  /  WORK PERMITS  /  LMIA Based Work Permits

LMIA based Work Permits

LMIA stands for Labour Market Impact Assessment. An LMIA is a document issued by Employment and Social Development Canada (ESDC)/Service Canada that assesses the impact of hiring a foreign worker on the Canadian labor market. It is a requirement for certain types of work permits in Canada.

LMIA based work permit is a two-step application process. The first step is to apply for an LMIA to Service Canada. Before hiring a foreign worker, Canadian employers typically need to apply for an LMIA to demonstrate that there is a need for a foreign worker to fill a specific job position and that there are no qualified Canadian citizens or permanent residents available for the job. The LMIA process involves proving that the employment of a foreign worker will not have a negative impact on the job opportunities or wages of Canadian workers.

The second step is to apply for a work permit by submitting a work permit application to Immigration, Refugees and Citizenship Canada (IRCC) once an employer has obtained a positive LMIA from Service Canada. Once issued, the work permit will specify the job position, the employer, and the duration of the work permit. The LMIA-based work permit allows the foreign worker to legally work in Canada for the specified employer and duration mentioned in the work permit.

LMIA based work permits based on skill types

Skilled Work Permits

Skilled work permits are obtained in an occupation under the National Occupational Classification (NOC) TEER 0,1,2 and 3.  Generally, for skilled work permits, applicants need to have 1-3 years of experience depending upon the occupation and in certain cases, only relevant education can fulfill the job requirements. Applicants also need to prove their English or French language skills to meet the job requirements.

Semi-Skilled Work Permits

Semi-skilled work permits pertain to occupations categorized under the National Occupational Classification (NOC) codes TEER 4 and 5. To qualify for semi-skilled work permits, applicants typically need a maximum of a high school education or job-specific training. Like skilled work permits, applicants must also prove their proficiency in either English or French to meet the job requirements.

In the case of semi-skilled work permits within the agriculture stream, specific language skills, education, and experience may not be mandatory. However, applicants are still required to fulfill all the general eligibility criteria for obtaining a work permit.

Under semi skilled work permits, generally employers pay return airfare, ensure that affordable and suitable accommodation is available, provide temporary medical insurance coverage, register workers with provincial workplace safety insurance plans.

LMIA based work permits based on Wage.

High-Wage Workers

In Canada, each province and territory establishes a median hourly wage determined by Statistics Canada. Workers considered “high-wage” are those who earn at or above the median hourly wage for a specific occupation in a particular region. Employers offering wages that meet or exceed the provincial/territorial median hourly wage should submit a Labour Market Impact Assessment (LMIA) application under the high-wage stream.

For employers seeking to hire high-wage workers, the process includes submitting transition plans along with their LMIA application. These plans demonstrate that employers are taking measures to reduce their reliance on temporary foreign workers over time. Essentially, they are utilizing the program as a last resort, addressing immediate labor needs on a temporary basis only when qualified Canadians are unavailable. This approach ensures that Canadians are given priority access to available job opportunities, aligning with the goal of using temporary foreign workers as a limited and temporary solution to address specific labor shortages.

A transition plan outlines the actions that an employer commits to taking in order to actively recruit, retain, and provide training to Canadians and permanent residents, while also reducing their reliance on the Temporary Foreign Worker Program. This plan, which must be valid for the entire duration of the temporary foreign worker’s employment, is a mandatory requirement for hiring temporary foreign workers in high-wage positions. It serves as a formal commitment to prioritize the recruitment and development of the Candian workforce, ensuring that the Temporary Foreign Worker Program is used as a temporary and limited solution to address labor needs when no qualified Canadians or permanent residents are available.

The transition plan includes the following:

  • Details about the employer’s recruitment efforts and strategies to attract Canadian workers for the position.
  • Information about training and skills development programs for Canadian workers to meet the job requirements.
  • A timeline outlining when and how the transition will occur, including key milestones and goals.
  • Metrics and benchmarks for measuring the employer’s progress in transitioning to a more Canadian workforce.
  • Plans for advertising job vacancies to Canadian citizens and permanent residents.
  • Evidence of outreach to underrepresented groups in the Canadian labor force, such as Indigenous people, individuals with disabilities, or newcomers.
  • Any other relevant information that demonstrates the employer’s commitment to reducing their reliance on foreign workers.

Median hourly wages by province or territory can be found by clicking the link below:

https://www.canada.ca/en/employment-social-development/services/foreign-workers/median-wage.html

Low-Wage Workers

Employers are obligated to submit an LMIA (Labour Market Impact Assessment) application under the low-wage occupation stream if they are offering wages to a foreign national that are below the provincial or territorial median hourly wage. Unlike high-wage positions, employers seeking to hire foreign workers for low-wage positions are not required to include transition plans with their LMIA applications. However, they must adhere to a different set of guidelines.

To restrict access to the Temporary Foreign Worker Program (TFWP) and ensure its responsible use, the Canadian Government has implemented a cap to limit the number of low-wage temporary foreign workers that a business can employ. Additionally, certain low-wage occupations may be denied LMIA processing. It’s important to note that there are exceptions to the cap, and it does not apply when an employer is hiring a temporary foreign worker for on-farm agricultural positions, caregiving positions for health care institutions (NAICS 62) for NOC positions 31301, 32101 and 33102, positions for which you’re submitting an application to support a TFW’s permanent residence under an Express Entry program and many more.

It’s important to note that the availability and conditions of these exemptions may change over time. Employers and foreign workers should check with Employment and Social Development Canada (ESDC) or Immigration, Refugees, and Citizenship Canada (IRCC) for the most up-to-date information on cap exemptions and program requirements when applying for low-wage LMIAs or consult a Regulated Canadian immigration consultant. 

Employers hiring workers at a low wage must comply with several specific requirements, including:

  1. Providing Round-Trip Transportation: Employers are responsible for covering the cost of round-trip transportation for the temporary foreign worker (TFW).
  2. Ensuring Affordable Housing: Employers must ensure that affordable housing is available to the TFW.
  3. Paying for Private Health Insurance: Employers are required to provide private health insurance for TFWs until they become eligible for provincial health coverage.
  4. Registering with Workplace Safety Board: Employers must register the TFW with the provincial or territorial workplace safety board.
  5. Providing an Employer-Employee Contract: Employers are expected to provide an employer-employee contract that outlines the terms and conditions of employment.

These measures are in place to protect the rights and well-being of temporary foreign workers in low-wage positions and to ensure that they are provided with the necessary support and benefits during their employment in Canada.