labour market impact assessment (LMIA) process

LMIA Process Steps

Businesses required to complete a Labour Market Impact Assessment (LMIA) should familiarize themselves with the LMIA process. If unsure about the need for an LMIA, begin by understanding the general rules and options for hiring foreign workers in Canada.

The LMIA process consists of several main steps. Depending on a history of hiring foreign workers and the appropriate LMIA stream, employers might undertake all steps or be exempt from some.

Step 1: Job Bank Registration

All businesses that want to apply for an LMIA must have a valid Job Bank account for employers. This account only needs to be created once, typically with the first LMIA application and can be used for all subsequent applications. The account serves two primary purposes.

First, employers are verified and assigned a valid employer account when they initially provide details such as a business number, industry of operation, address, employee count, and other essential business information. They may also be asked to provide business documents.

Second, employers with a valid account on the Job Bank can post jobs and recruit and hire throughout Canada. Before filing an LMIA application, they are required to advertise a vacancy on the Job Bank unless an exemption applies.

Furthermore, all LMIA applications must now be submitted via the LMIA Online Portal, and having a valid Job Bank account is a prerequisite for accessing this portal. With a Job Bank account, employers can manage users, allowing them to post jobs and participate in the LMIA process. This facilitates workflow management and distribution of responsibilities and ensures tasks are completed on time.

Typically, new employer registration on Job Bank can be completed within a week.

Step 2: Provincial Registration 

Businesses planning to hire foreign workers in British Columbia, Manitoba, Saskatchewan, or Nova Scotia must also obtain permission from the respective province to hire foreign workers. Once provincial registration is completed, they receive a provincial employer registration certificate. This certificate is one of the required documents when applying for an LMIA to hire foreign workers. Such provincial registration has a maximum validity period. During this period, employers can apply for an LMIA as many times as they wish. However, they need to renew their provincial registration when it expires. Each of the three provinces has its own registration procedure for employers. These can be found at the following links:

• Employer registration process to hire temporary foreign workers in British Columbia
• Employer registration information for employers wanting to recruit foreign workers in Manitoba
• Employer registration process to hire temporary foreign workers in Saskatchewan‍
• Employer registration process to hire foreign labour in Nova Scotia

The processing time to obtain a provincial employer registration certificate varies by province and the volume of applications. On average, it may take anywhere from a few weeks to a couple of months.

Step 3: Recruitment of Canadians and Permanent Residents

Generally, companies are obligated to recruit by advertising job vacancies to locals first. This step is pivotal in the LMIA process. Businesses must demonstrate that no qualified Canadians or permanent residents are available for the position before they can be allowed to hire foreign workers. 

Specific requirements pertain to recruitment and job advertising within the LMIA framework. Furthermore, some provinces have licensing requirements for those conducting recruitment. If businesses utilize such services, they must adhere to these regulations. 

For certain roles that are confirmed to be in high demand and short supply, the recruitment step might be waived or streamlined. Consequently, not every employer needs to undertake this step in the LMIA process.

Typically, advertising must be running for at least four consecutive weeks without interruption on multiple job boards.

Step 4: LMIA Application Completion through LMIA Online Portal

Every LMIA application includes application forms, supporting documents, and, if applicable, a counsel’s submission letter. While there are foundational eligibility requirements all employers need to satisfy, the exact forms and the list of documents required can differ based on several factors.

These factors include the chosen LMIA stream, the business's history with hiring foreign workers, and the presence of a representative assisting with the application. This step entails completing the application forms corresponding to one of the LMIA streams and submitting documents that attest to the legitimacy of the employer's business.

All LMIA applications must be submitted online via the LMIA Online Portal. Following the application, there's the payment of an LMIA processing fee unless exempted.

Step 5: LMIA Application Assessment

This phase typically involves a review of an LMIA application by an officer from Employment and Social Development Canada (ESDC)/Service Canada. The process may also require an LMIA interview or responses to written requests if deemed necessary.

An ESDC/Service Canada officer assigned to process an LMIA application will scrutinize the genuineness of a job offer and the impact of hiring a foreign worker on the Canadian labour market. During an LMIA assessment, they will seek answers to some or all of the following questions:

• Is the employer actively engaged in the business, implying they operate in Canada and provide goods or services?
• Does the employer genuinely have a business need to fill a job position?
• Is the employer in a sound financial position and capable of meeting employment terms, including paying prevailing wages?
• Has the employer encountered any compliance issues when hiring foreign workers in the past?
• Will employing a foreign national likely lead to direct job creation or retention for Canadians or permanent residents?
• Will a foreign national's employment likely result in the development or transfer of skills and knowledge benefiting Canadians or permanent residents?
• Will employing a foreign national likely address a labour shortage?
• Do the working conditions offered to foreign nationals align with Canadian standards that are generally accepted?
• Is the employer taking measures to hire or train Canadians or permanent residents, or have they made reasonable efforts in this regard?
• Has the employer met or made sincere efforts to meet commitments under previously approved LMIAs?

The duration of an LMIA application assessment can vary depending on the chosen stream. Check current LMIA processing time by stream and how to prevent delays.

Step 6: LMIA Decision

The LMIA process concludes with a decision. If, after assessment, an officer determines that hiring foreign workers will have a positive or neutral impact on the Canadian labour market, they will issue an LMIA confirmation letter. This letter allows employers to hire foreign workers. Conversely, if the officer believes the impact will be negative, an LMIA application might be denied.

In the event of a positive assessment, an LMIA Confirmation Letter remains valid for six months from its issuance date. Within this period, employers should select candidates they wish to hire unless they have already identified them in an LMIA application. When ESDC adds names to an LMIA confirmation letter, those candidates can use the letter and the associated LMIA number to apply for a work permit.

An LMIA decision can be amended during its validity, primarily to update the names of temporary workers. For example, an employer might wish to replace a candidate whose work visa was denied.

Employers must adhere to the terms and conditions of an LMIA decision. These terms will also be reflected in the employment contract with foreign workers and their work permits. To alter any fundamental employment terms, such as hourly wage, location, hours, job duties, or other conditions, a new LMIA application must be initiated.

Adhering to the terms of an LMIA decision is crucial. Non-compliant employers risk facing fines and could be prohibited from hiring foreign workers if found in violation upon inspection.

Step 7: Offering a Job to Selected Foreign Workers

In essence, an LMIA process concludes with a decision that typically either approves or disapproves of hiring a certain number of foreign workers for specific positions. This is because, during the LMIA process, the assessment primarily focuses on the business and the genuineness of the reported shortage.

In most scenarios, identifying foreign workers or assessing their suitability for a role is not a factor during the LMIA stage. Only in situations where employers wish to support a permanent residence visa or hire a unique and specialized individual for an innovative project do they need to provide a candidate's name upfront in their LMIA application.

For most employers, obtaining a positive LMIA is a signal to begin searching for qualified foreign workers they aim to hire and sponsor through that LMIA. This essentially represents the second phase in the process of hiring foreign workers, as it happens post-LMIA approval.

Thus, businesses with an approved LMIA can source labour, skills, and talent from anywhere in the world to fill their vacancies. This often involves recruiting and subsequently adding the names of selected candidates to the LMIA decision. Acting promptly while the LMIA remains valid is crucial. Employers who delay the submission of names might miss their opportunity if the LMIA expires after six months. It's equally important to choose candidates who are genuinely suited for the roles and can provide documentation that they meet the job's requirements.

Typically, employers can add or change the names of temporary workers on an LMIA letter while it is valid for six months. Such requests should be made at least three weeks before the LMIA's validity expiry date.

Step 8: Supporting Foreign Workers in Obtaining an LMIA-based Work Permits

Selected candidates, who are foreign nationals, can only start working for a business after they obtain authorization to work in Canada. Once an employer provides them with an LMIA confirmation letter, they can either apply for a work visa from the country where they reside or for a work permit at the Canadian port of entry if they are nationals of a country not requiring a visa for Canada.

It is crucial that candidates submit comprehensive documentation demonstrating that they meet the job requirements, have ties to their home country, and fulfill other requirements based on their place of residence and country-specific mandates. An LMIA support letter, job offer, and employment contract typically validate that a Canadian business was permitted to hire a particular worker.

However, candidates must also demonstrate their capability for the job and confirm that no restrictions hinder their entry to Canada, such as medical, criminal, or security issues. These factors are assessed during the second stage of hiring temporary workers, which is work permit processing.

The duration it takes for a foreign national to start working for a Canadian business after an LMIA approval is contingent upon their current location and/or immigration status if they are already in Canada. Typically, workers from visa-exempt countries can begin more promptly as they can secure a work permit at the Canadian port of entry. In contrast, nationals from other countries must wait for their online applications to be finalized by the appropriate office. The processing time for work visas can vary significantly based on the backlog at the processing office, ranging from a few weeks to several months.

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