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Everything You Need to know About Labour Market Impact Assessment (LMIA)

Austin Campbell

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Labour Market Impact Assessment (LMIA)

A Labour Market Impact Assessment (LMIA) is a document demanded by an employer of the Canadian companies hoping to recruit temporary internationals under the Temporary Foreign Worker Program (TFWP) — a program intended to utilize foreign nationals and briefly address labour deficiencies on occasion when no certified Canadians are free to work such job positions.

Foundation of an LMIA

The idea of Labour Market Impact Assessments (LMIA) is based on the understanding of how they are worked with. To follow the process, employers must:

  • Admit that no Canadians were approved for the job aligned with a foreign worker.
  • Prove that the recruited worker will be entitled to pay along with benefits as per government standards.
  • Demonstrate that they have attempted, before searching out a foreign worker, to track down a Canadian resident or permanent resident for the empty position.

LMIAs are additionally not as simple as they might appear. At the end of the day, employers can’t just apply for an LMIA promptly when a job opportunity at their company is available. Canada expects that businesses publicize an empty open position for at least a month preceding applying for an LMIA.

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Differences in an LMIA process –  High-pay or Low-pay!

The difference, or subtlety, that exists in regards to the LMIA cycle encompasses whether the foreign workers that an organization is hoping to recruit will be named “high pay” or “low pay” workers

LMIAs for high-pay workers

A transition plan will be compulsory as a component of the LMIA submission process if an employer will be paying the employed foreign worker at a rate equivalent to or over the middle median provincial/territorial compensation. A transition plan helps the Canadian government in verifying that an organization’s recruiting exercises are aligned with foreign workers and adjusted appropriately with the objectives and goals of the TFWP. Transition plans help with this objective by demonstrating that the TFWP is being used within a restricted limit.

LMIAs for low-pay workers

Then again, the LMIA process for recruiting foreign workers that will be paid under the middle pay for a specific province or territory— generally called “low pay” laborers — doesn’t require

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Submitting the Transition Plan

Generally, to confine the exploitation of the TFWP by an organization, the Canadian government has restricted the quantity of temporary foreign labourers that a business can hire under the “low-pay” category. In addition, not all low-wage occupations are qualified for LMIA handling. However, there are a few requirements that employers hiring low-wage workers must meet in a place of submitting a transition plan.

  • Round-trip transportation payment to Labourer
  • Housing is provided at a low-cost
  • Private health insurance is paid
  • Temporary Foreign worker is recorded with the provincial workplace security board.
  • Contract or promise submission by employer and employee
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