Labour Market Impact Assessments (LMIAs)

In most cases, employers are required to apply for a Labour Market Impact Assessment (LMIA) before they can hire foreign workers (there are limited exemptions). In order to obtain a positive LMIA, a Canadian employer must prove that there is no Canadian or permanent
resident worker available to complete the job in question and a foreign worker is therefore required.

  • LMIA applications should demonstrate:
  • Efforts were made to recruit Canadian citizens or permanent residents
  • Working conditions meet the current provincial labour market standards
  • Wages are persistent with the current wage rate for Canadian citizens and
    permanent residents in the same occupation in the same region
  • Transition plans for high-wage positions demonstrating efforts to hire Canadian
    workers in the long-term

The LMIA process will vary depending on whether the targeted employee is classified as high-wage or low-wage.

High-Wage Worker

When a Canadian employer is targeting a high-wage worker, they are required to submit a transition plan with their application that will demonstrate an increased effort in hiring Canadian workers for the position in the long-term. The transition plan must demonstrate a
decreased reliance on foreign workers.  A high-wage worker is anyone making more than the hourly minimum wage for a given
occupation in a particular region. The transition plan is used to demonstrate that the TFW Program is being used as a last resort when for a temporary position when a qualified Canadian worker is not available.

Low-Wage Worker
Canadian employers are limited in the number of foreign workers they are able to hire for a posted position. This is to ensure that Canadians are always considered first for a job. Certain low-wage occupations can be refused for LMIA processing and certain restrictions and a cap can be placed on Canadian employees. 

Canadian employers offering a low-wage position must:

  • Ensure that affordable housing is available for potential foreign workers
  • Provide a contract to the employee
  • Register the employee with the proper federal/provincial safety board
  • Pay for round trip transportation
  • Pay for private health insurance until the foreign worker become eligible for
    provincial health coverage

To determine your eligibility as a Canadian employer or a foreign worker, please contact us to check your eligibility and start the process.

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Guthrie Law is a boutique law firm specializing in Immigration Law.  We provide help with all legal aspects of coming or staying in Canada.

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