TFWP Program – Work Visa Based on LMIA – RainCity Immigration Ltd

Working through LMIA in Canada

What is LMIA Canada?

You might be wondering what LMIA Canada is. Canadian employers looking to hire foreign workers through the TFWP program usually need to get a confirmation of employment from the Canadian Ministry of Labor before making a hire. This confirmation is known as the Labour Market Impact Assessment (LMIA), which was previously referred to as the Labor Market Opinion (LMO).

Canada supports its domestic workforce. Therefore, an employer offering you a job must demonstrate to the Employment and Social Development Canada (ESDC) that bringing in foreign workers won’t have a negative impact on the Canadian labor market. In other words, your employment shouldn’t lead to Canadian workers becoming unemployed or having their wages cut.

Stay with us as we explain everything you need to know about LMIA in Canada.

Latest News

In October 2024, the Canadian government has imposed restrictions on hiring foreign workers with LMIA. In areas with an unemployment rate above 6%, hiring foreign workers is banned, and in areas with lower unemployment rates, the quota for foreign workers is limited to 10%. Additionally, starting November 8, 2024, employers will be required to pay at least 20% more than the regional average wage to foreign workers. Read more »

Work Permit with LMIA in Canada

As you know, in order to work in Canada and obtain a work visa or work permit, one way is to first receive a job offer from a Canadian employer. For the employer to make a job offer, they must first obtain an LMIA according to Canadian government regulations. This is the permit we explained in the previous section.

What are the conditions for obtaining LMIA in Canada?

Employers who are looking to obtain an LMIA approval in Canada must meet certain conditions, without which they can’t get the LMIA permit from the Canadian Ministry of Labor. To comply with Canadian government laws and regulations, employers may be subject to inspection.

They must have a legal business.

They should offer goods or services to the public.

They need to be able to pay the foreign workers.

They must have a genuine need for foreign labor.

They shouldn’t have laid off employees in the 12 months prior to applying for an LMIA.

Requirements for receiving a positive LMIA

To receive a positive LMIA, if the Canadian government officials responsible for processing LMIA applications reach the following conclusions, then they will issue the Canadian labor market impact permit:

Hiring a foreign worker will have a positive or neutral effect on the Canadian labor market.

No qualified Canadian has been overlooked due to hiring a foreign individual.

The foreign worker receives wages and benefits that meet federal and provincial standards.

Otherwise, the LMIA result will be negative.

Tips for successfully obtaining an LMIA permit in Canada

For employers to have a better chance of getting the LMIA document for you, it’s essential to consider the following points:

Choosing the right NOC code

The first step in this process is for the employer to select the correct NOC code; a code that accurately reflects the job description of the intended foreign worker. NOC, or the National Occupational Classification of Canada, is essentially a system that the Canadian government uses to categorize various jobs based on the required skill level, education, and job duties.

The federal government needs to accurately understand the job duties of the intended foreign worker to correctly assess the impact of hiring that individual on the Canadian labor market. If there is a mismatch between the NOC code and the duties of the foreign worker, the application for the LMIA will be denied.

Carrying out adequate advertising and announcements for the desired job

The purpose of submitting an LMIA application is for the employer to demonstrate that they couldn’t find Canadian workers for the desired position. One common reason for LMIA applications being rejected is that the federal government isn’t convinced that the employer has been unable to find Canadian labor. Therefore, the employer must comply with this requirement by posting job ads that are approved by the federal government.

Although most job advertisements only stay posted for 28 consecutive days, at least one of the ads must be promoted on the Canada Job Bank or other job search websites until the LMIA is approved.

Submitting complete documentation

For the LMIA to be successfully approved, the employer must submit comprehensive documents to the Employment and Social Development Canada. The LMIA application process is complex, requiring a lot of documentation and filling out government forms. Seemingly minor errors can jeopardize the LMIA request or, at the very least, prolong its processing time.

The relationship between LMIA and wages received

The process of obtaining an LMIA varies depending on whether the foreign labor falls into the high-wage or low-wage category.

If the wage set by the employer is below the provincial average, it will fall into the low-wage employee category, and if the wage set is above the provincial average, it will be classified as high-wage employees. Depending on which of these categories you fall into, there will be specific regulations regarding the LMIA application process.

How to obtain an LMIA for high-wage foreign employees

Canadian employers looking to hire high-paid foreign employees must submit a plan to the Canadian Ministry of Labour showing their intention to reduce their reliance on foreign labor in the future. This plan is called a Transition Plan. Initiatives such as investing in specialized training or hiring Canadian interns are examples of a Transition Plan.

If an employer is selected for inspection or seeks to extend their LMIA, they must provide a report on their Transition Plan. The review of the Transition Plan is meant to ensure that Canadian employers are working towards the goal of the plan, which is to reduce dependence on foreign labor.

As a result, hiring high-paid foreign workers is the last and most limited solution used to address immediate and temporary labor market needs. Employers can only temporarily hire foreign individuals if there are no qualified Canadian workers available.

Therefore, LMIA is a tool used by the Canadian Ministry of Labour to ensure that Canadians are always prioritized when hiring skilled workers with high salaries.

How to obtain LMIA for low-wage foreign employees

Employers who intend to hire low-paid workers do not need to submit a Transition Plan along with the LMIA, but they must follow other guidelines.

The Canadian government has implemented restrictions on the number of low-paid temporary foreign workers to ensure that Canadians are prioritized for existing jobs. Additionally, some specific low-paid positions may not be accepted in the LMIA process.

Employers with 10 or more employees can hire 10% of their workforce from low-paid foreign workers when applying for an LMIA extension. Moreover, employers offering less than the provincial average wage must:

They should cover the transportation costs for foreign workers.

Make sure affordable housing is available for the employee.

They should pay for the private health insurance costs of foreign workers until the workers qualify for provincial health coverage.

They should enter into a contract between the employee and the employer.

Advertising Requirements

The employer must announce all job opportunities in the Canadian labor market in job ads at least 4 weeks before applying for an LMIA. To this end, employers are required to use at least two other recruitment methods in addition to posting ads on the Job Bank. Canadian employers should focus their advertising efforts on underrepresented Canadian groups (such as people with disabilities).

For high-paying jobs, employers must advertise that position in three different sources to apply for an LMIA. For instance, on three websites or newspapers. However, for low-paying jobs, the ad should be placed in five different sources.

LMIA Application Fees in Canada

If the employer’s proposed job requires LMIA approval, the employer must pay the fee. However, if the job offer is LMIA-exempt, the employer only needs to pay the compliance fee.

Application	Cost (CAD)
Labour Market Impact Assessment – LMIA	$1000
Employer Compliance Fee	$230

How long does it take to receive an LMIA?

According to the official Government of Canada website, on average, the processing time for the Canadian embassy’s response to an LMIA approval request in September 2024 is as follows:

Type of Application	Average Review Time
Global Talent Stream Immigration Stream	9 business days
Agricultural Immigration Stream	15 business days
Seasonal Agricultural Worker Immigration Program	6 business days
High-Wage Worker Stream	53 business days
Low-Wage Worker Stream	51 business days
Permanent Residency Stream	100 business days

Jobs Exempt from LMIA

According to the official Government of Canada website, some jobs do not require LMIA approval. However, in most cases, employers need to obtain an LMIA from the Department of Labor in Canada to approve your job offer.

Job offers exempt from LMIA in the Express Entry system

In the Express Entry system, if you meet the following conditions, your employer will not need to obtain an LMIA approval:

You must have worked full-time (or the equivalent part-time) for that employer for at least 1 year with your work permit.

You must have a valid job offer.

You must have a valid work permit that is exempt from LMIA under one of the following categories:

– International agreement

– Federal-provincial agreement

– Canadian interests group

For skilled trades, up to 2 employers can provide job offers. The applicant must work for both of these employers.

Jobs exempt from LMIA by the employer

If your current temporary job is under a specific employer or employers (for skilled trade jobs, a maximum of two employers can offer jobs) and falls under the following categories, you may not need to obtain an LMIA approval in the Express Entry system:

– It is under an international agreement like NAFTA or GATS or other non-commercial agreements. Professionals, traders, and investors fall into this category.

– It is under an agreement between the Government of Canada and one of its provinces or territories. Many large investment projects fall into this category.

– You are applying under the IMP program and do not need LMIA due to “Canadian interests”:

– Significant benefits – if your employer can prove that your presence brings significant social, cultural, or economic benefits to Canada. This can include the following groups:

– General: self-employed engineers, technical staff, creative artists

– Individuals being transferred intra-company (inter-organizational transfers with specific knowledge) – only those whose skills and experience are beneficial to Canada.

– Employees working in Canada under federal-provincial agreements or Mobilité francophone (labor exchange within companies).

Mutual employment – Let’s allow foreign workers to get jobs in Canada when Canadians have similar job opportunities in other countries:

General (like professional coaches and athletes working for Canadian teams)

International experience in Canada – overseas work program for youth and young professionals

Individuals in exchange programs (Exchange Programs) including professors and guest speakers

Jobs designated by the minister

Academic staff including researchers, guest speakers, and invited professors (who hold sponsorship through a valid federal program)

Doctors and medical residents

Postdoctoral researchers and individuals who have received scholarships from Canadian institutions.

Charity and religious work (does not include volunteers)

Charity staff

In Canada, charity is defined as a source for alleviating poverty, promoting education, and other specific purposes that help the community. In this way, some charity staff do not require an LMIA to enter the Canadian job market temporarily.

Religious workers

They must have the ability to teach and share the religious beliefs required by the employer. These individuals also do not need to obtain an LMIA.

Jobs that don’t require an LMIA still need a work permit.

How to get a work permit in Canada based on LMIA approval

To know how to obtain a work permit based on LMIA, follow these steps:

Employer’s application for LMIA approval

Before issuing a temporary work permit, the Canadian employer wishing to hire temporary workers must apply for and receive an LMIA from Canada’s ESDC. As mentioned earlier, this certification is granted if no Canadian citizens or permanent residents can fill the job.

Job offer from the employer

After receiving the LMIA, the Canadian employer can offer you temporary work as a foreign worker. The employer must send you a copy of the LMIA along with the job offer letter and employment contract.

Requesting a work permit from a foreign worker

After receiving the necessary documents from the employer and preparing other required paperwork, you can apply for a work visa for Canada or a work permit through IRCC.

If you’re planning to work in Canada, you need to have a Certificate of Acceptance from Quebec (CAQ) (the work permit process in Quebec is different).

Issuing the work permit

The Canada Border Services Agency (CBSA) will issue your work permit upon entry into Canada.

Do you have a job offer from Canada and need a work permit?

A temporary work permit is issued for a short duration ranging from a few months to a few years. The work permit issued for a specific job and under a particular employer in Canada is limited to that job. Consequently, you can only work for the employer specified in your work permit. If you find a different job and do not have permanent residency status in Canada, you must obtain a new work permit for that new job.

Additionally, to be able to work and live permanently in Canada, you need to convert your temporary work permit into permanent residency in Canada through one of the immigration pathways, such as Express Entry or Provincial Nominee Programs (PNP).

Facts about working in Canada

Your work in Canada should not negatively affect the employment of citizens and permanent residents of Canada.

With a job offer from a Canadian employer, you can apply for a work permit and enter the Canadian job market.

To work in Canada, you need to obtain a work permit, and in some cases, you also need approval from the Canadian Department of Labour.

You do not need a job offer to obtain an open work permit or free work permit in Canada.

Canadian work permits are always temporary in nature, but they can be renewed from within Canada.

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Frequently asked questions

How long is an LMIA valid?

According to the latest update from the Immigration Department on March 21, 2024, the validity of the LMIA permit has been reduced from 12 months to 6 months.

Which organization should you apply to for an LMIA?

Employers must apply online to the Employment and Social Development Canada (ESDC) for LMIA approval.

Who needs to obtain an LMIA?

Employers seeking certain types of temporary workers must apply for an LMIA before taking steps to get a work visa. The LMIA is issued by Employment and Social Development Canada and allows Canadian employers to hire foreign workers.

If you have an LMIA issued within the last year, do you need to obtain it again?

Each LMIA is valid for a limited time. If your employer wants to keep you employed for a longer period, they must apply for a new LMIA. The role of Employment and Social Development Canada is to ensure that there are no Canadian citizens or permanent residents available for that job position.

What should you do when the work visa needs to be renewed and the applicant does not have a new LMIA or CAQ?

If the applicant’s work visa is set to expire in less than 2 weeks, they can submit their application without having an LMIA or CAQ. In this case, the applicant must provide evidence showing that they have applied for an LMIA and CAQ.

Do entrepreneurs need to obtain an LMIA for employment in Canada?

No, entrepreneurs can apply for a work permit without an LMIA. The goal of entrepreneurs in Canada should be to establish a business that:

creates or maintains significant social, cultural, or economic benefits for Canada and

creates jobs for Canadian citizens or permanent residents.

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