AN EMPLOYER NEEDS AN LMIA TO HIRE FOREIGN WORKERS

A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada may need to get before hiring a foreign worker. A positive LMIA will show that there is a need for a foreign worker to fill the job. It will also show that no Canadian worker or permanent resident is available to do the job.

There are some exemptions to some employers or organizations needing an LMIA

The following are key considerations when an employer applies for an LMIA

1. Salary should be consistent to that offered to Canadian workers.
2. Any collective bargaining involved.
3. Is there a labor shortage for that occupation in the area the position is located?
4. Employers effort to recruit and train local Canadian workers.
5. Will the foreign worker be able to transfer unique skills or expertise to Canadians?
6. Will hiring the foreign worker help to create or retain jobs for Canadians?

The federal government has frozen caps on the number of Temporary Foreign Workers a business can hire.

Limits were due to be reduced from 20 per cent to 10 per cent of a company’s workforce from July 1.

But following a review of the Temporary Foreign Worker Program, the Liberals have decided to keep the cap at 20 per cent for the foreseeable future.

The move was welcomed overall, although many businesses say they had already begun reducing numbers in anticipation of the cap deadline.

These are primarily in the following industries

As of April 30, 2022 and until further notice, you are subject to a 20% cap limit on the proportion of temporary foreign workers that you can hire in low-wage positions at a specific work location. The cap is to ensure that Canadians or permanent residents are considered first for available jobs. 

For applications received between April 30, 2022 and April 30, 2023 from employers hiring workers in low-wage positions in the following defined sectors and sub-sectors, you are eligible for a cap limit of 30%:

• Construction (NAICS 23)
• Food Manufacturing (NAICS 311)
• Wood Product Manufacturing (NAICS 321)
• Furniture and Related Product Manufacturing (NAICS 337)
• Hospitals (NAICS 622)
• Nursing and Residential Care Facilities (NAICS 623)
• Accommodation and Food Services (NAICS 72)

The sectors and sub-sectors classification code is determined by the North American Industry Classification System (NAICS) Canada.

You must complete the Cap for Low-wage Positions section of the Labour Market Impact Assessment application to determine if you are within the proportion of temporary foreign workers that you can hire in low-wage positions at a specific work location. You may be asked to submit documents, such as payroll records, to support the information provided.

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We also provide LMIA and recruitment services.

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