Explained:
Guiding Your
Workforce in Canada
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Modernizing Workforce Acquisition through LMIA
The Labour Market Impact Assessment (LMIA) stands as a critical juncture in Canada's approach to employing foreign workers, effectively categorizing positions into High-Wage and Low-Wage based on the median wage rate of each territory.
This division informs a vital aspect of the hiring process for Canadian employers seeking to bring temporary foreign workers (TFWs) into the national workforce.
High-Wage Positions
Employers looking to fill high-wage roles must present a comprehensive Transition Plan with their LMIA application, demonstrating a commitment to evolving towards a workforce that increasingly comprises Canadian citizens or permanent residents, tailored to the specific job and location.
Low-Wage Roles
For positions classified as low-wage, the requirements ease slightly, with no Transition Plan needed. However, employers with a workforce exceeding 10 employees face restrictions, capping the employment of low-wage TFWs to 20% of their workforce.
Enhancing Canadian Workforce with LMIA for Permanent Residency
The Canadian government acknowledges the essential role foreign workers play in filling labor shortages when Canadian citizens and permanent residents are unavailable.
This approach prioritizes higher-skilled foreign workers, recognizing their ability to integrate economically and contribute significantly to Canada's skilled labor demands.
For employers aiming to support the permanent residency applications of skilled foreign workers, a job offer can be extended through the Express Entry system under Immigration, Refugees, and Citizenship Canada (IRCC).
Such job offers need to align with the requirements of economic immigration programs like the Federal Skilled Worker Program, Federal Skilled Trades Program, or the Canadian Experience Class, ensuring a strategic match between Canada's labor needs and the skills foreign workers bring to the table.
For Employers without an LMIA:
Employers not possessing a Labour Market Impact Assessment (LMIA) can recruit temporary foreign workers via the International Mobility Program (IMP).
This process involves paying an employer compliance fee and submitting both a job offer letter and acquiring an employment offer number, ensuring regulatory compliance and facilitating the hiring process without an LMIA.
After LMIA Processing:
Upon completion of an LMIA review, employers receive a decision document outlining the assessment's outcome.
This critical juncture determines whether the proposed job offer aligns with Canadian labor market needs and whether foreign workers can be hired to fill specific roles, marking a pivotal step in both the employer's recruitment strategy and the potential employee's journey to working in Canada.
Ready to Strengthen Your Workforce with Foreign Talent?
Navigating the LMIA process or exploring the International Mobility Program can be complex. Whether you're looking to fulfill immediate labor shortages or enhance your team with skilled international workers, understanding your options is crucial.
Our team of experts is here to guide you through every step, from LMIA applications to leveraging the IMP for your hiring needs. Let's ensure your business thrives by securing the talent it deserves.
FAQs
Everything You Need to Know about LMIA
What is an LMIA and why do employers need it?
An LMIA, or Labour Market Impact Assessment, is a document that Canadian employers may need to obtain before hiring a foreign worker. It proves that there is a need for a foreign worker to fill the job and that no Canadian worker is available to do the job.
Can employers hire foreign workers without an LMIA?
Yes, employers can hire foreign workers through the International Mobility Program (IMP) without an LMIA. However, they must pay an employer compliance fee, submit a job offer letter, and obtain an employment offer number.
What happens after an LMIA is processed?
Once an LMIA application is processed, employers will receive a decision. If approved, it means the employer can proceed with hiring the foreign worker under the conditions outlined in the LMIA.
What's the difference between hiring through LMIA and the IMP?
Hiring through an LMIA involves proving no Canadian can fill the position, while the IMP allows employers to hire temporary foreign workers without proving this, often for broader economic, cultural, or other strategic interests.