The Labour Market Impact Assessment (LMIA) is a crucial part of Canada’s Temporary Foreign Worker Program (TFWP). It ensures that hiring foreign workers does not negatively impact the Canadian workforce. Employers in Canada who wish to bring in a foreign worker must typically apply for an LMIA through Service Canada. Service Canada evaluates whether hiring the foreign worker will have a positive or neutral effect on the Canadian labor market. The assessment verifies that no qualified Canadian citizens or permanent residents were overlooked and that the foreign worker's salary and benefits meet federal and provincial standards.
High-
Wage
vs. Low-
Wage
Temporary
Foreign
Workers
Temporary foreign workers are categorized based on their wages:
- High-Wage Workers: Those earning at or above the provincial/territorial median wage. Employers hiring high-wage workers must submit transition plans to show efforts to reduce reliance on temporary foreign workers over time and support the worker’s path to Canadian permanent residency.
- Low-Wage Workers: Those earning below the provincial/territorial median wage. Employers must:
- Cover round-trip transportation costs.
- Ensure affordable housing.
- Provide private health insurance until provincial health coverage kicks in.
- Register the worker with the provincial/territorial workplace safety board.
- Offer an employer-employee contract.
LMIA applications for low-wage positions will not be processed in regions with an unemployment rate of 6% or higher.
Fast Processing of LMIA Applications
Certain LMIA applications can be processed within 10 business days, including:
- Highest Demand Occupations: Skilled trade positions with wages at or above the median wage, crucial for infrastructure and natural resource projects.
- High Paid Occupations: Jobs offering the top 10% wages in a province or territory, indicating high-skilled roles.
- Short Duration Jobs: Positions for 120 days or less with wages at or above the median wage, such as repair or manufacturing roles.
Once you receive a positive LMIA, provide a copy to
your foreign worker, as it must be included in their Temporary Work Permit application.
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