LMIA Application
The Labour Market Impact Assessment (LMIA) Process
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LMIA Application | Labour Market Impact Assessment
The LMIA application process is complex and time-consuming, with time-sensitive requirements and a final interview with a Service Canada representative.
The steps include identifying the correct employment stream and meeting all of Employment Social Development Canada’s (ESDC) requirements for job descriptions, wages, advertisements and recruitment drive.
Additionally, you will need to complete the forms and provide supporting documentation to ensure ESDC compliance.
Failing to get everything right can mean the LMIA application being rejected and the $1000 processing fee lost.
Having an expert guide you through each step, helping you to ensure a complete and decision-ready LMIA application, can be the difference between success and failure.
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What is a Labour Market Impact Assessment?
An LMIA Application is a validation issued by ESDC saying that a genuine and acute skill or labour shortage exists.
The employer must meet the requirements of an ESDC-compliant recruitment drive which targets Canadians and Permanent Residents, and prove that they are unable to find suitable candidates for the position. A positive determination provides eligibility to apply to Immigration and Refugee Citizenship Canada (IRCC) for an employer-specific work permit to help fill the skills gap thus bringing economic benefits to the employer and the economy as a whole.
LMIAs can also be used as an instrument to support an application for Permanent Residency.
The program has multiple streams, including high-skilled, low-skilled, caregiver, primary agriculture, and film and entertainment.
The LMIA is just one offering in the Temporary Foreign Worker Program, there are other streams such as the Global Talent Stream for high-skilled workers, LMIA exempt work permits and free-trade agreements that should be explored as part of the assessment process to find the best route for your circumstances.
What is the LMIA Application Process?
The LMIA Application Process is bureaucratic and involves multiple steps to validate that the skill shortage is real and that substantial efforts to recruit Canadians have been made.
The basic steps include the following;
- • Identifying the correct stream, determining whether the position is high-wage or low-wage;
- • Choosing the right occupation code and crafting the job description and employment requirements;
- • Drafting job advertisements that meet ESDC requirements and posting methodology;
- • Completing all the necessary forms and requirements, for example, the transition plan for high-wage applications, and meeting the 20% cap rule for low-wage applications to name two;
- • Service Canada Interview preparation, where the employer is examined by the Service Canada agent to ensure ESDC compliance and program integrity.
Can you apply for an LMIA yourself?
Sure you can and people do!
But often times employers and employees recognize that it is a complex process and there is skin in the game. ESDC application processing fees are $1000 per application and the additional points that an LMIA can bring to a prospective immigrant to improve their Express Entry score are no small potatoes.
It all depends on how much time you have available, your attention to detail and your comfort level in going it alone.
What are the Requirements for a successful LMIA Application?
We have been around the block and know what Service Canada agents are looking for. Successful LMIA applications have the following characteristics;
- • There needs to be a genuine and acute skills shortage that is documented by Statistics Canada and regional labour market information;
- • The Company must have the financial means to pay the wage and to meet payroll for all employees. ESDC does a deep dive into Company financials and wants to see T2, T100, T125 and PD7A’s as proof of eligibility;
- • It has to make sense. An application needs to have a business case as to why they need the workers they need, you would be surprised how many employers fail to support the reason they need the skills and expertise they are seeking;
- • If the application is in support of Permanent Residency the Company must have been established for at least 1 year, you would be amazed how many times people miss this.
FAQs about the LMIA application process
Employers must submit an offer of employment that includes detailed information about the job duties, salary and any other relevant information.
Additionally, employers must prove to ESDC that they satisfy the following factors:
- • Genuine job offer
- • Comparable wage and working conditions
- • Benefits to the Canadian workforce
- • Compliant recruitment process
- • No Labour dispute
Processing times vary depending on the employment stream and complexity of the application. Generally, applications take around three to four months to process, unless in support of Permanent Residency, in which case it’s much quicker.
When it comes to common reasons for LMIA Application refusal it really comes down to these five main culprits:
- • Insufficient or inadequate recruitment efforts e.g.; non-continuous advertising or erroneous NOC code analysis
- • Not meeting the prevailing wage (believe it or not)
- • Incomplete application
- • Not meeting program requirements
- • Ill-preparedness for the interview
Employers must pay the processing fees to Service Canada and for recruitment advertising when submitting their application, it should be noted that processing fees are waived for applications that support permanent residency.
The fee structure can vary depending on the type of application, number of job positions. For the most part however, the LMIA processing fee is $1000 per application. The processing fee is paid separately from any representation fee.
If you are thinking of hiring a professional immigration consultant to assist you, our rates start at $4500 + Taxes. You can see a full list of our fees and what affects them in our price guide.
The consultation is the first step in our process to assess whether you are eligible and whether the case has a good chance of success. It might be that an LMIA is not the best route for your circumstances in which case we make suggestions on other options that you may not have considered.
Our LMIA consultations start at $189.
In most cases, employers must apply for an LMIA in order to hire a foreign worker.
There are limited LMIA-exempt work permits and instances where a work permit may not be required, we explore all of your options in our paid consultations.
When it comes to LMIA Application categories there are two main options. These include;
- • High-skilled occupations, including Training, Education, Experience and Responsibilities (TEER) Skill levels 0, 1, 2 and 3 occupations. That offer a salary equal to or more than provincial/territorial wage cut off.
- • Lower-skilled occupations, which include TEER Skill Level 4 and 5 occupations, that offer a salary below the provincial/territorial wage cut off.
For higher-skilled occupations hiring must include a transition plan. Comparatively, for lower-skilled occupations, employers are subject to a cap on the proportion of foreign workers employed at a specific work location.
Employers who do not follow the compliance rules may face penalties and fines, as well as possible criminal charges for offences such as exploiting foreign workers. It is important to ensure that all applicable policies and procedures are followed at all times.
ESDC performs compliance audits on 25% of Companies that apply.
Employers must retain all records for six years and continue to comply with the terms outlined in the application and the obligations of the stream that they applied.
ESDC has the authority to issue Administrative and Monetary Penalties and Bans as follows;
– monetary penalties from $500 to $100,000 per violation;
– a ban of 1, 2, 5 or 10 years, or permanent bans for the most serious violations;
– company naming and shaming on the ESDC website;
– revocation of previously-issued LMIAs
It is important for employers to ensure that their applications are prepared properly and submitted in compliance with the rules so as not to put their business at risk.
For more information about how to apply for an LMIA, contact us today!
To learn more about our LMIA services feel free to check out our social media links down below!
You can also contact us here or give us a call at 604-722-8930
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LMIA Application | Labour Market Impact Assessment
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