LMIA Canada
LMIA Application Canada (Labour Market Impact Assessment)
In a long list of different ways to immigrate to Canada, work-based immigration is at the top of the list. At first sight, it would seem that there are no difficulties for a qualified specialist who speaks English and has the necessary work experience to find an employer in Canada who is ready to hire such a valuable employee. The mutual desire of the employer and the potential employee is not enough to get a work visa and start a brilliant Canadian career. The Government of Canada considers that the main principle of employment is to give priority to Canadian residents. It follows from this that before hiring a foreign worker, the employer must make every possible attempt to employ a citizen or permanent resident of Canada. If nevertheless, after numerous attempts, a suitable candidate could not be found among the residents, the employer has the right to apply to the government for permission to hire a foreign worker. This very permit is called Labor Market Impact Assessment (LMIA Canada), or an assessment of the impact on the labour market of hiring a foreign specialist. It is also known as a Labour Market Opinion (LMO). After receiving the LMIA decision in Canada, the employer informs the applicant who submits documents for obtaining a work permit. A potential employee can use an offer from an employer to get additional points in the process of applying for immigration to Canada.
The process starts when the employer fills out the necessary documents and questionnaires and submits them for consideration to the Employment and Social Development of Canada (ESDC). These documents address information about the firm and the job for which the employer needs an international specialist. To qualify for a positive LMIA in Canada, a Canadian government employee reviewing an application must determine that hiring a foreign worker will have a positive or neutral effect on the Canadian labour market. Among other factors, there needs to be a clear understanding that Canadian skilled workers have not been denied in the interests of the foreign worker and that the foreign worker will be paid wages and benefits that meet federal and provincial standards. The employer must demonstrate both the aim and futility of the endeavour to hire the overseas specialist in Canada. As evidence, companies provide publications of open job positions, a copy of the CV of a candidate, etc. In addition, employers may be subject to government compliance checks after an employee starts working in Canada. The employers also need to justify the reasons for refusal to applicants from Canada. The reasons can vary, for example, lack of experience or skills to perform duties, lack of the necessary education, too large demands for a salary for this speciality. Concerning wages, it is important to keep in mind that an employer cannot charge wages below market rates in Canada. The salary is calculated depending on the region, position, specialization and market trends. The LMIA process in Canada differs depending on whether an employee is classified as “high-paid” or “low-paid”. Temporary workers who receive wages below the provincial average wage are treated as low-paid workers, while workers who earn at or above the level are considered high-paid. Depending on whether the prospective employee is high-paid or low-paid, certain provisions apply.
Employers seeking high-wage workers must submit a transition plan with an application for a Labor Market Impact Assessment (LMIA Canada) to ensure that they take all necessary action to further reduce their dependence on temporary foreign workers. Highly-paid workers are those who earn above the average hourly wage for a given job in a specified area. The transition plan is designed to ensure that the employer searches for foreign workers following the objectives of the program. The program is intended to be used as a last resort and limited way to meet urgent work needs temporarily in a situation where there is a lack of skilled workers among Canadians and ensures that Canadians have priority access to existing jobs. The hiring parties looking for low-wage workers are not required to submit a transition plan in conjunction with an application for a Labor Market Impact Assessment (LMIA Canada). However, they need to adhere to a different order. To restrict access to the Temporary Foreign Worker Program (TFWP), subject to prioritizing of Canadians for existing positions, the Government of Canada has set a cap on the number of low-paid temporary workers employed. In addition, some low-paying occupations may be denied LMIA in Canada. Employers with 10 or more employees who are applying for a new LMIA in Canada must fall within the 10% limit for temporary low-wage workers. In 2015 and 2016, there will be a gradual transition to the cap so that employers above the 10% cap have time to transition and adjust accordingly. There is a list of conditions that companies must fulfil before hiring low-paid workers. Firstly, they must pay for a round trip for a temporary foreign employee. Secondly, a company must provide a newcomer with affordable housing and register him or her with a provincial workplace safety board. Besides, health insurance is essential and the hiring party must pay for it until a worker is eligible for provincial medical services. The legal aspect is vital as well, there must be a contract concluded between an employee and employer.
Getting LMIA in Canada is a long process but some occupations are provided with the document in 10 business days. It is a standard service for selected jobs that need fast decisions as they may affect production processes. A 10-days service standard is set for the most sought-after occupations, skilled trading positions, where the salary offered is at or above the average provincial salary. These highest-demand occupations are essential for the development of large infrastructure and natural resource projects and are therefore considered vital to Canada's economic growth. To this category apply jobs related to construction, oil and gas, mechanics industries such as contractors, electricians, etc.
Also, a 10-days service standard is available for employers who hire people for highly paid positions. The salary of a candidate should be in the 10% of the maximum wage Canadians earn in a given province or territory where the applicant will work. This payment level indicates that the temporary foreign worker is the most highly skilled in his profession and that a worker with similar skills is difficult to find in the Canadian labour market.
This service is also available for employers who require temporary foreign workers for a short-term period of 120 calendar days or less, for any type of employment where the salary offered is at or above the average salary in the provinces or territories. The occupations falling into this category relate to repairs, manufacturing equipment and warranty work. After receiving a positive LMIA result in Canada, the employer must send a copy to his foreign worker. A positive LMIA in Canada result must be included in the worker's application for a temporary work permit. The LMIA can be issued to one or more employees. If an assessment is issued to multiple employees, the LMIA will only be issued to those employees who intend to occupy the same positions as specified in the Canadian National Employment Classification. Large global companies such as Amazon or Microsoft have special LMIAs that are not tied to a specific specialist, and such LMIAs are issued for a specific position in the company. If you have the opportunity to interest in such a giant market, you will not have to wait and worry whether the company will receive a permit for your speciality, these companies already have quotas for foreign workers and they do not need to prove that you are the ideal applicant.
The hiring party must advertise all job openings in the Canadian labour market for four weeks before applying for the LMIA in Canada. As such, employers must prove that they have used at least two recruiting methods in addition to advertising in the Job Bank of Canada. Employers should focus all advertising on under-represented groups in Canada such as Aboriginal people or people with disabilities. English and French are the only languages that can be specified in job requirements for both the LMIA and job advertisements unless the employer can prove that the position requires a different language. Employers must pay a fee of CAD 1,000 for each Labor Market Impact Assessment request. In addition, they are charged an additional USD 100 commission by Employment and Social Development Canada.
A transition plan is also required to be submitted to ESDC in conjunction with the LMIA application in Canada for high-paid positions. The transition plan should reflect how the company plans to reduce its dependence on temporary foreign workers in the future. Investing in vocational training or hiring Canadian trainees can be a valid example. Alternatively, employers can demonstrate how they are helping their highly skilled temporary foreign workers become permanent residents of Canada. The hiring party will be required to report the progress of the provided transition plan in cases whether the employer is selected for review or if he is applying for an LMIA renewal in Canada. Employers must confirm that they are aware that they are prohibited from suspending or shortening the working hours of Canadian staff who work in the same positions as temporary foreign workers in the company.
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