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Labour Market Impact Assessment (LMIA)

The Employment and Social Development Canada (ESDC) compiled a study called the Labour Market Impact Assessment (LMIA), which explains the potential implications that come with employing a foreign worker into the labour market in Canada. The completion of an LMIA, which is a prerequisite for employing people from other countries, is done with the goal of preventing any unfavourable effects on the market. The results of a successful LMIA are frequently referred to as a confirmation letter.

In order to confirm the employer's stated reasons for wanting to hire a foreign worker, information is requested from them. This covers questions like how many people from Canada applied for the job, whether or not they were considered, and finally why they were not chosen for the position.

After a positive LMIA has been confirmed, the employee is required to submit an application for a work visa. This must be included in the permit:

  • The job offer letter, the copy of the contract, and the LMIA number


There are now two categories available for employing foreign skilled workers through the LMIA process. The first one pays a very high wage, whereas the other one pays a very low wage. Low-wage refers to incomes that are lower than the median wage in the province, whereas high-wage refers to earnings that are equal to or higher than the median wage in the province.

A transition plan is a condition that needs to be met in order for a firm to hire foreign workers at high wages. This transition plan is a form that needs to be submitted as part of the LMIA application's Schedule C. When an employer is trying to hire foreign workers, the transition plan helps enforce a commitment from the employer about the location and employment of the potential new hires. Proof in areas such as skilled training programs, hiring Canadian apprentices, and aiding foreign workers in becoming permanent residents are all positives for qualifying for a transition plan. The plan is an indication that the company plans to move towards Canadian workers rather than foreign workers. When an inspection is done or when an employer has sought for the renewal of their LMIA, the employer is expected to submit progress reports of the transition plan.

It is not necessary to have a transition strategy in place for low-wage international workers. Employers are given a quota that dictates the maximum number of foreign workers at low wages that they are permitted to hire. The percentage of low-wage foreign workers that can be employed by any company with more than 10 total employees is limited to no more than 10% of their workforce.

The only languages that can be deemed criteria for LMIAs are English and French. Unless the potential employer can provide a reasonable explanation for why another language could be required for the position, the answer is no.

Employers are required to have advertised employment openings in the Canadian market for a minimum of four weeks prior to submitting an application for an LMIA. In addition to placing an advertisement on the Canadian Job Bank website, they must also provide evidence that they have utilized two other employment techniques.

I Fly Immigration in Mississauga is able to help break down all you need to know about an LMIA, regardless of whether you are an employer or an employee, whether it be the requirements or the information. No of the angle from which you might require an LMIA, our ever-expanding body of knowledge and team of seasoned professionals are here to lend a helping hand.

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