Hiring foreign workers can be a game-changer for your business
Hiring foreign workers can be a game-changer for your business, helping you fill critical roles and strengthen your team. By understanding the LMIA process, employers can confidently navigate the requirements and enjoy the many benefits of international talent.
In today’s fast-paced economy, businesses often need access to specialized skills or additional workforce to meet growing demands. If you’re a Canadian employer and struggling to fill job vacancies with local talent, hiring foreign workers may be a great option. But before you can do that, you may need to obtain a Labour Market Impact Assessment (LMIA).
An LMIA is a document issued by Employment and Social Development Canada (ESDC) that allows employers to hire foreign workers when no Canadian citizen or permanent resident is available to fill the position. From an employer’s perspective, the LMIA confirms that hiring a foreign worker won’t negatively impact the Canadian labour market. It demonstrates that all reasonable efforts were made to find Canadian workers first.
Hiring foreign workers can bring several advantages to your business. It helps fill skill gaps, introduces diverse perspectives, and often provides a unique competitive edge in specialized sectors like IT, healthcare, and construction. In many cases, foreign workers bring experience and expertise that is otherwise hard to find in Canada, allowing businesses to grow and remain competitive on a global scale.
Employees with an LMIA work permit are authorized to work exclusively for the employer who sponsored them, ensuring a long-term, full-time employment arrangement. This stability allows you to build a strong, reliable team and leverage the foreign workers’ unique skills and experiences. Typically, LMIA work permits are valid for 2 to 3 years, giving your business the continuity and expertise needed to thrive while benefiting from global talent.
As an employer, it’s essential to meet specific criteria before applying for an LMIA. Here are the key steps and requirements:
Job Advertisement: You must prove that you’ve made reasonable efforts to hire Canadian citizens or permanent residents. This includes advertising the position in multiple places for at least four weeks and continuing to advertise until a decision is made on your application.
Wages and Working Conditions: Ensure the offered wages are consistent with what is being paid to Canadian workers in the same occupation and region. The working conditions should also align with the labour laws in your province or territory.
Transition Plan: If you’re applying for high-wage positions, you need to provide a transition plan that outlines your efforts to hire or train Canadians to reduce the need for foreign workers in the future.
Business Legitimacy Documents: You will need to provide documents to prove your business is actively engaged and in good standing. This may include business licenses, tax returns, financial statements, and proof of payroll records.
When applying for an LMIA, it’s important to choose the correct stream based on the type of job you’re offering and the needs of your business. Here are the main LMIA streams:
PR Support Stream (Permanent Residence Support LMIA): This stream allows employers to hire foreign workers who will apply for permanent residency. An LMIA through this stream provides PR support to the foreign worker, meaning that once the LMIA is approved, the worker can use it to boost their Express Entry profile and potentially receive an Invitation to Apply (ITA) for permanent residency.
Key Points:
Focuses on long-term employment relationships.
Ideal for positions requiring skilled workers who aim to settle permanently in Canada.
If employer is applying for LMIA only to support PR potential employee and do not hire him/her before getting PR there is no government fee for the LMIA application.
The LMIA government fee is $1,000 per position
High-Wage Stream: The high-wage stream applies when the position being offered pays at or above the provincial/territorial median hourly wage. Employers applying through this stream need to provide a transition plan that shows how they intend to reduce their reliance on foreign workers over time by hiring or training Canadians.
Required for jobs offering wages at or above the median wage.
Requires a transition plan.
Often it applies to skilled positions or higher-paying roles.
Low-Wage Sream: The low-wage stream is for employers offering jobs that pay below the median hourly wage in the province or territory. Employers hiring under this stream are subject to stricter limitations, such as capping the number of low-wage positions they can fill with foreign workers. No transition plan is required, but employers must meet specific conditions such as ensuring transportation and accommodation for the workers.
For jobs paying below the median wage.
Employers must meet additional conditions like providing transportation and accommodations.
Capped at a certain percentage of the workforce.
Agricultural Sream: This stream is specific to employers in the agricultural sector who need temporary foreign workers to fill farm-related jobs. It is available for positions related to primary agriculture, including fruit and vegetable harvesting, livestock management, and other farm-related activities. This stream allows for a more streamlined process to meet the unique demands of the agricultural industry.
Designed for primary agriculture positions.
Streamlined process to meet urgent workforce needs during planting, growing, and harvesting seasons.
Workers may qualify for other seasonal worker programs such as the Seasonal Agricultural Worker Program (SAWP).
When applying for an LMIA, you’ll need to gather and submit several essential documents. Here’s an overview of what to prepare:
Business Registration Documents: Proof that your business is registered and in good standing.
Proof of Recruitment Efforts: Copies of job postings, detailed records of interviews, and reasons for not hiring Canadian applicants.
Employment Contract: A copy of the signed employment contract outlining wages, benefits, and working conditions for the foreign worker.
Wage Information: Details about the wage offered, including how it meets the median wage standards in the region.
Proof of Financial Capacity: Documents demonstrating your ability to pay the foreign worker, such as recent tax returns and financial statements.
Applying for an LMIA is now easier with the government’s online system. To start your LMIA application:
Create an Account on the Government of Canada’s Online Platform: Register and create an account on the Government of Canada’s Job Bank and ESDC’s Employer Portal.
Complete the Application Form: Fill out the LMIA application form relevant to your business and the type of job you’re hiring for (PR support, low-wage, high-wage, or agriculture).
Attach Supporting Documents: Upload all the required documents, such as proof of recruitment, wage details, business legitimacy documents, and financial statements.
Submit the Application: Once your application is complete, submit it through the online portal along with the required processing fee. The current processing fee is CAD $1,000 per position (exceptions may apply for some agricultural positions).
Prepare for an ESDC Review: After submitting your application, ESDC will review your case. They may reach out for additional information or clarification, so be ready to provide any requested documents promptly.
Receive the Decision: Once approved, you will receive a positive LMIA, allowing your foreign worker to apply for a work permit.
The current LMIA processing fee is CAD $1,000 per position, regardless of the stream you are applying under. However, employers applying under certain agricultural streams, such as the Seasonal Agricultural Worker Program (SAWP), caregiver stream (with family income lower than $150,000) are exempt from the fee. Always check the Government of Canada’s official site for any updates on fee structures.
To increase the chances of your LMIA being approved, ensure your documentation is thorough and organized. Make sure to:
Clearly demonstrate efforts to hire Canadians first.
Show how the wages and working conditions align with Canadian standards.
Provide a robust transition plan if applying for high-wage workers.
Keep detailed records of your recruitment process and include these in your application.
For more detailed instructions on the LMIA process, the official Government of Canada website offers comprehensive guidelines for employers, which can be accessed here.
By following the correct procedures and submitting a well-documented LMIA application, you can successfully bring foreign talent into your workforce, helping your business thrive in today’s competitive market.
The LMIA application process can be complex and requires significant experience and attention to detail. For the best results, it’s highly recommended to seek assistance from a professional immigration consultant. By doing so, you can avoid the risk of losing your application fees in case of a refusal, as a professional can manage the process efficiently and increase your chances of approval. Let a certified expert handle the paperwork, ensuring everything is submitted correctly the first time.
Please contact us at info@dayanaimmigration.com and book your FREE Strategic Call for Canadian Employers.
