In general, all Canadian employers must provide proof that they have attempted to find qualified Canadian citizens or permanent residents to fill job positions before turning to foreign workers, which is a process of LMIA application. Also, employers might be inspected for compliance with government regulations after their employee has begun working in Canada.

LMIA application process

The procedure is named Labour Market Impact Assessment (LMIA application), formerly known as a Labour Market Opinion (LMO).
Depending on whether the targeted employee is classified as “high-wage” or “low-wage” the LMIA application process is different.

Temporary foreign workers being paid under the provincial/territorial median wage are considered low-wage, while those being paid at or above are considered high-wage. Depending on whether a prospective employee is classified as high-wage or low-wage, certain specific provisions apply.

All Canadian employers must provide evidence that they have attempted to find qualified Canadian citizens or permanent residents to fill job positions before turning to foreign workers. Also, employers may be inspected for compliance with government regulations after their employee has begun working in Canada.

LMIA application must be submitted by an employer aiming to hire a foreign worker, and approved from the Canadian Government before the hiring can take place.

LMIA application requirements

In a limited number of situations Canadian immigration officials may issue Work Permits without the LMIA application requirement, as follows:

• Under international agreements, such as the North American Free Trade Agreement (NAFTA);
• Due to the significant economic, social or cultural benefits the work activity will bring to Canadians;
• As part of reciprocal agreements Canada and its provinces/territories have entered into with other countries, such as youth and teacher exchange programs;
• So that international student studying in Canada can fulfil academic requirements, known as co-op placements;
• To allow the spouses/common-law partners of Work Permit and certain Study Permit holders in Canada to work in Canada;
• Because the nature of the work is charitable or religious;
• In recognition that certain persons in Canada for reasons other than the above-mentioned, such as the making of a refugee claim, need to support themselves.

Requirements for employers

LMIA application fees.

Employers aiming to hire a temporary foreign worker to Canada must pay a processing fee of 1,000 CAD for each request for an LMIA application. There is also be an additional $100 privilege fee on employers charged by Employment and Social Development Canada. English and French are the only languages that can be determined as job requirements, both for LMIAs and for job vacancy advertisements, unless the employer can prove that another language is otherwise required for the position.

Additionally, employers must advertise all job vacancies across the Canadian job market for at least four weeks before applying for an LMIA. Towards this end, employers are required to prove that they have used at least two other recruitment methods in addition to having posted an advertisement on the Canada Job Bank. Employers must focus advertising efforts on groups of Canadians who are under-represented, such as First Nations or persons with disabilities.

Employers are also required to submit a transition plan to ESDC, along with the LMIA application, for high-wage positions. This transition plan should indicate how the company plans to reduce its reliance on temporary foreign workers in the future. Proof of investment in skills training or hiring Canadian apprentices are examples of how employers can prove this. Alternatively, employers can demonstrate how they are assisting their high-skilled temporary foreign worker(s) in becoming Canadian permanent residents. If the employer is chosen for an inspection, or if they apply to renew their LMIA application, they will be required to report on the progress of the transition plan that they have submitted.

Employers are required to attest to their awareness that they are prohibited from laying off or cutting the hours of Canadian workers working in the same position(s) as the temporary foreign worker(s) working at the company.

Positive LMIA

To receive a positive LMIA, the Canadian government officer reviewing the LMIA application must determine that the hiring of a foreign worker will have a positive or neutral effect on the Canadian labor market.

Among other factors, it must be clear that no qualified Canadians were passed up in favor of the foreign worker, and that the foreign worker will be given a salary and benefits that meet federal and provincial standards.

High-Wage Workers

In order to hire high-wage workers employers must submit transition plans along with their LMIA application to ensure that they are taking steps to reduce their reliance on temporary foreign workers over time. High-wage workers are those earning above the median hourly wage for a given occupation in specified region.
The transition plans are designed to ensure that employers seeking foreign workers are fulfilling the purpose of the program. This entails that they are using the program as a last and limited resort to address immediate labour needs on a temporary basis when qualified Canadians are not available, ensuring that Canadians are given the first chance at available jobs.