Your Essential Guide to LMIA Canada Work Permits

If you wish to work in Canada, you can pursue the dream with a temporary work permit supported by LMIA Canada. LMIA is the Labour Market Impact Assessment, which is a document issued by Employment and Social Development Canada (ESDC) assessing the impact of hiring a foreign national in the country. It falls under the Temporary Foreign Worker Program (TFWP) and enables employers to hire foreign employees. 

LMIA Canada: Demystifying Application Essentials and Procedures

Any Canadian employer wanting to hire a temporary foreign worker (TFW) must apply for LMIA. An employer can apply for LMIA as early as six months before the intended start date of the job. It's better to start early as the requirements are extensive, and the LMIA processing time is usually long.  

More importantly, the LMIA application requirements will differ depending on whether the targeted employee is classified as "High Wage" or "Low Wage." Employers will have to check the median hourly wage of their territory or province to determine which categories the hiring position falls under.

*wages as of May 31, 2023

High-Wage Workers: Application Requirements 

If the employer provides a wage at or higher than the provincial or territorial median hourly wage to the temporary foreign worker, they will fill out an application under the high-wage stream. The application requirements for the high-wage stream are as follows:

• Processing Fee: All applications for LMIAs have to pay CAD 1,000 (INR 61,935) processing fee, which is not refunded even if the result is negative. Certain applications, particularly for in-home caregivers under the LMIAs, may be exempted from this fee. 
• Business Legitimacy: Submit documents that support business legitimacy. These include the most recent business license, Canada Revenue Agency tax documents, and recruitment and advertisement documents. 
• Transition Plan: Employers must submit a plan specifying how they intend to recruit, train, and retain Canadians and permanent residents and reduce reliance on the TFWP. 
• Recruitment: Employers must submit evidence showcasing their efforts to recruit Canadian citizens and permanent residents to fill the position before hiring a TFW. 
• Wages: Applications will include information regarding the wages of TFWs to ensure that they are given the same amount as their Canadian equals.  
• Workplace Safety: Employers must offer evidence that TFWs will be covered by insurance, which is, at minimum, equivalent to the health coverage offered by the territory or province where the business is situated. 

Low-Wage Workers: Application Requirements 

Employers will apply under the low-wage stream if they provide a wage below the territorial or provincial median hourly wage. 

However, when hiring low-wage foreign workers, there is a limit to the number of workers one can employ. As of April 30, 2022, and until further notice, employers are subjected to a 20% cap limit on the number of TFWs they can hire in low-wage positions at a specific work location. 

While the application requirements are similar to that of a high-wage stream, employers must also pay for round-trip transportation for the TFW and offer them affordable housing under the low-wage stream.

Application Process 

Employers can apply for both high-wage and low-wage stream LMIA through an online portal following the given steps:

• Create a Job Bank account for the employer.
• Access the LMIA online portal with the account details.
• Submit the application 
  • Create and fill out the LMIA application form 
  • Upload essential documents that support business legitimacy (if needed) 
  • Submit the application form with the requested documents
• Pay the processing fee and wait for the ESDC to evaluate your application 

What Happens When the LMIA is Approved

If the employer has received a positive LMIA, they can hire a foreign temporary worker for only LMIA-approved jobs in Canada. Positive LMIAs are valid only from the date of issue, but still, double check as in certain cases, it might be less or more. 

Once they receive it, they must immediately inform the foreign national to apply for an LMIA work permit. LMIA and the confirmation letter are not the only essentials for foreign workers' employment in Canada. The worker will have to apply for an LMIA work visa and obtain a work permit at the Canadian border, for which they will require:

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

Final Words 

Canada is a prime destination for many foreign nationals seeking employment opportunities. With an LMIA work permit, it's easier for you to work in the country and be eligible for several Canadian residency programs. LMIA Canada not only safeguards the rights of Canadian citizens but also ensures foreign nationals get the same opportunities as them. The LMIA maintains a balanced and fair employment landscape in the country.  

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