Labour Market Impact Assessment (LMIA) Information

Canada is known for its diversity and acceptance of all cultures. It, therefore, makes sense that many companies and individuals seek to work in Canada at least partially. Although welcoming to mostly all international workers or companies, Canada first and foremost takes into consideration its citizens and that is where the LMIA comes into play.

The LMIA is set up in such a way as to ensure that Canadian workers can be employed first and therefore there are limitations on the number of international workers, as well as other regulations involving them.

Facts about the LMIA

• The LMIA is overseen by the Government of Canada through the Economic and Social Development Canada (ESDC). It ensures that all safety and employment laws are followed when hiring international workers.
• All workers must receive the same standardized wages as Canadians
• Are safety laws consistent with general safety laws for Canadians must be followed
• All companies must be in compliance with collecting bargaining regulations
• Is there a need for hiring international workers because a shortage of Canadians exist in that industry
• Can the international workers contribute to the welfare of an industry
• Are there any disputes within the industry where Canadians do not want to work for a company
• The company must have all work permits for the LMIA in place
• The processing of applications will take longer for non-skilled labour than for skilled labour
• Employers must show sufficient evidence that they have tried to fill positions with Canadians and that enough recruiting and advertising has occurred for open positions
• Dates of arrival and dates of the finished contracted work of international employees must be specific
• An annual unemployment rate of 6 percent must exist in a region where a company wants to hire international workers
• Certain industries only are eligible for LMIA acceptance and all companies must check with the ESDC and other agencies before bringing anyone from another country into Canada to work
• Skills training that is offered to Canadians will increase an employers’ chance of using temporary international workers
• Some industries such as airline pilots have additional regulations
• There can be a few other agencies involved from which permits might be needed as Canada also considers itself a “green energy” nation

Employers and Employees Should Check the TFWP

This is an offshoot program of the LMIA and the Immigration Program of Canada and provides an online portal for the application of employers and employees to work in Canada temporarily. Again, a company or employee must show a shortage of Canadian labour for the positions which need to be filled.

There are, however, many exceptions, with those being for certain Indigenous tribes which live on tribal lands but are not considered part of Canada, as well as certain segments of international populations.

According to the TFWP, although the workforce shortage is the main objective that drives permits issued to foreign workers, there are other factors which the TFWP considers.

• Multicultural diversity
• Arts and other aesthetically driven careers
• Globalization enhancement
• Embracing social activism by giving a chance at a decent life in Canada to others around the globe

Application Fees for LMIA do Exist

The TFWP has set the rates for application as $1000 per worker so it is not a free program. A transition plan is needed so this is best left to a lawyer who adds to the fees. Special permits can exist depending upon the industries involved. There are ways to apply for a foreign worker in Canada without going through the LMIA but this also includes fees. There is an employer portal on the TFWP and LMIA website and all these exclusions and fees are explained. To be frank a great deal of research and attention to detail is needed and the LMIA is not a program in which finding “cheap labour” should be used as a solution for companies to save money.

In addition, as of 2021, there have been a lot of changes to the LMIA and TFWP regulations and processing times because of Covid-19. These changes will undoubtedly remain in place for the duration of Covid-19 as parts of Canada are still under stay-at-home restrictions and orders.

LMIA Experiences and Conclusions

Some companies and workers find the LMIA the best solution to their mutual needs. Workers get to work in a clean, friendly, and sanitary country and engage in a cultural experience. Employees can fill empty positions and keep their company scalable. However, not everyone that is approved, whether a worker or company, has a good experience. Some workers become homesick and leave the job after the company has spent time and money to get them approved. Some companies find that foreign employees can have different work ethics and cultural values which interfere with maximum performance.

Like all other global interactions patience on both sides is needed and research into the whole process needs to be done. For the most part, it is a good experience but there are exceptions to every rule, and not every worker or employer is up to the challenges. It is not a process to be taken lightly and should only be used when an employer truly needs to hire outside Canada. Workers that immigrate for temporary work inside Canada should also consider the fact that they will be experiencing a different culture and far away from their homeland.

Is LMIA a Good Option All the Time?

A hasty decision from both employers and workers will only lead to frustration using the LMIA. Extreme vetting of workers is needed and many interviews and background checks should be done by both sides of the LMIA equation to ensure a good experience. Add to that the fact, that now with Covid-19 still impacting the globe, many areas of Canada are experiencing long wait times on LMIA applications which can add to the frustration of both employers and workers. Constant research into the Covid-19 restrictions by both parties can assist in determining if now is a good time to hire a foreign national worker or to even be one. Globalization of workers is a great answer to the needs of workers and employers but really under the best of circumstances only.

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