Canadian Work Permit (LMIA)
The Canadian LMIA work permit, formerly known as the LMO permit, is used by Canadian employers to hire foreign workers through the TFWP program. In most cases, employers must obtain employment approval from Labor Canada before hiring. This approval, called the Canadian Labor Market Impact Assessment or LMIA for short, is issued by Employment and Social Development Canada (ESDC) to assess the impact of hiring a foreign worker on the country’s labor market.
Canada’s support for the domestic workforce
Canada supports the workforce in its domestic market. An employer who issues a job offer to an applicant must demonstrate to the Employment and Social Development Canada (ESDC) that the entry of foreign labor into the Canadian market will not have any negative impact on the existing labor force in the domestic market. In other words, the applicant’s work must not cause unemployment or reduce the wages of the Canadian workforce.
Types of LMIA work permit
- Negative LMIA Work Permit: Indicates that Canadian citizens or permanent residents may be suitable for the job position.
- Positive LMIA Work Permit: Also known as a letter of approval, it indicates that a foreign workforce is definitely needed to fill the position and that there is no Canadian citizen or permanent resident who can fill the position and be suitable.
LMIA work permit requirements for employers
- Financial ability to pay salaries of foreign employees
- Lack of internal force to do the work and the real need to hire foreign force
- No dismissal of employees in the 12-month period prior to applying for LMIA
- Complying with all business rules and obtaining official and valid licenses
- Activities in the field of goods or services
- Obtaining LMIA for highly paid foreign employees
So, Canadian employers who intend to hire foreign labor with high salaries must submit a plan to the Canadian Ministry of Labor that shows that in the future they intend to reduce their dependence on foreign labor through proper planning and timing. This plan is called Transition Plan.
Examples of Transition Plan actions:
- Investing in specialized education
- Hiring Canadian interns
- Obtaining an LMIA for low-wage foreign workers
Employers who intend to employ foreign workers with wages lower than the provincial average do not need to submit a transition plan along with the LMIA; But they must follow other guidelines.
Canadian government restrictions on hiring low-wage foreign workers
The number of this type of foreign labor is limited. Also, the purpose of this restriction is to prioritize the recruitment and employment of Canadian workers.
Businesses exempt from receiving LMIA approval
- Investors
- Technicians
- TV directors and film producers
- Religious occupations
- Airline personnel
- traders
And…
Note: For more and up-to-date information, visit the Immigration, Refugees and Citizenship Canada (IRCC) website. Because the conditions and rules related to LMIA may change.
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