LMIA Requirements: What Employers Need to Know
The Labor Market Impact Assessment (LMIA) is becoming an increasingly popular way for Canadian employers to build their workforce. There are many advantages to the LMIA; however, the biggest advantage is that employers hire foreign workers who will be committed to their company for a minimum of 2–3 years. This minimizes the cost and other issues that come with turnover. In Canada, companies that deal mainly with manual or skilled labor are more likely to have issues with turnover and overall unreliable long-term staff. Therefore, it is no surprise that there are special policies implemented by Employment and Social Development Canada (ESDC) to facilitate these industries and ensure the economic well-being of Canada. But what do employers need to know about the process? Here are some of the main things employers need to understand before committing to undergoing the LMIA process.
1. What is An LMIA
The Labor Market Impact Assessment (LMIA) serves as a critical component in the Canadian immigration framework. The LMIA is an evaluation carried out by the Canadian government to determine the possible effects of hiring a foreign worker on the local labor market. The LMIA makes sure that recruiting foreign workers is in the best interests of the Canadian workforce by closely examining factors such as the availability of Canadian workers and the economic need for international talent. In short, the process ensures that hiring foreign workers aligns with the needs and best interests of the Canadian workforce and economy.
2. High-Wage and Low-Wage LMIAs
There are 2 categories to keep in mind when you are considering hiring a Temporary Foreign Worker (TFW). These two categories are separated by wages, so it is important to consider what wage you are planning to pay the foreign worker. Each category has its own advantages and disadvantages, therefore, it is best to consider each category and how the different policies and regulations align with your company.
High-Wage LMIA
This means that the hourly wage you intend to pay the foreign worker is equal to, or above the median wage (prevailing wage) for the region in which your business is located. For example, if your business is located in London, Ontario and you would like to hire an administrative assistant, the first thing to do is check the median wage for administrative assistants in London, Ontario. You can do this by using the Job Bank to search the job title and view the different wages for this region. If the median hourly wage for administrative assistants in London, Ontario is $25.50, and you choose to pay the foreign worker $25.50 or more, then you will be submitting a High-Wage LMIA application.
Low-Wage LMIA
This means that the hourly wage you intend to pay the foreign worker falls below the median (prevailing) wage for the region in which your business is located. For instance, if you would like to hire an administrative assistant in London, Ontario, and the median hourly wage for this region is $25.50, then any hourly wage you choose to pay the foreign worker that falls below $25.50 will be considered low-wage, and you will be submitting a Low-Wage LMIA application.
3. The Application Process
Required Documents
The LMIA application process might be a bit lengthy depending on whether your business has had an LMIA approved in the past two years and also depending on the industry or sector your business falls under. However, let’s assume that this is your very first LMIA application. The documents that you would need to provide may include financial statements, attestations, tax slips, and any other documents required by ESDC that are specific to the industry.
Advertisement
ESDC needs to have proof that you attempted to hire a Canadian citizen or permanent resident. Because of this, there are certain advertising requirements put in place; these requirements vary depending on the sector your business falls under. However, in general, advertising requirements may include posting a job ad on 3-4 job websites, including Job Bank of Canada. These job ads must stay active until employers receive the LMIA decision from ESDC. Additionally, employers must advertise for a set amount of time, and recruitment efforts must be documented as proof before an LMIA application can be submitted. The period of time employers must advertise depends on the sector the business falls under.
Submission and Processing
After the documents have been collected, the application form is completed, and the advertising requirements are met, it is time to submit the LMIA application. The application is submitted online, and after submission, ESDC will request a government fee of $1000.00 to be paid for each job position for which an LMIA was submitted. When the fee is paid, the waiting game begins for the application to be processed. When the application is processed, ESDC will notify you of the decision. A positive LMIA means that you are able to hire a foreign worker, the foreign worker will then need the LMIA number to apply for the work permit.
Seeking Assistance from an Immigration Expert
Employers who are considering hiring foreign talent in Canada might be aware that the process is lengthy and time-consuming. For this reason, many employers consider hiring an immigration expert such as a Canadian immigration lawyer or consultant so that the process is less stressful. Hiring an immigration expert to undergo the LMIA process comes with significant benefits. Here are some of the advantages of hiring an immigration expert:
General Expertise
Understanding immigration forms and policies can be difficult for someone who isn’t used to the legal jargon and requirements. Immigration consultants stay updated with the latest immigration changes and understand the nuances of the LMIA process. They have extensive experience and will be able to guide you so that you have greater chances of a successful application.
Documentation
Applying for an LMIA involves extensive paperwork and documentation. Immigration experts will guide you through the specific documents that you will need based on the type of position you are trying to fill and the industry. Additionally, immigration experts understand that it is crucial to complete the LMIA application form accurately, and they will ensure all compliance requirements are met to minimize any delays or discrepancies with your application.
Continued Support
Even after submitting your LMIA application, an immigration consultant can still be helpful. They can respond to inquiries from Employment and Social Development Canada (ESDC) and address any requests for additional information. They can also advocate on your behalf if you receive a negative LMIA or advise you on the possible steps you can take.
The LMIA process is designed to balance the needs of the Canadian economy. Although the process is difficult, it does come with its advantages. Seeking the assistance of an immigration expert can significantly reduce the stress that comes with the process since employers are generally busy, and having the stress of an LMIA application added to the daily hustle will only cause mistakes in the application. At Berhan Immigration, we are committed to assisting employers from all industries build and diversify their workforce through the LMIA process. Our immigration consultants are equipped with the experience and expertise to assist you with your immigration needs. To discover how we can be of service to you and your business, please send us an email at josan@berhanimmigration.com or give us a call at 519-868-4352.
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