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Labour Market Impact Assessment (LMIA) applications have gained popularity since the introduction of Express Entry, as PR hopefuls receive an additional 600 points for having government approved ‘arranged employment’ via a positive LMIA from their employer. Although many people would like to pursue obtaining an LMIA to either to help with their Permanent Residence or to apply for a work permit, they don’t know what an LMIA is, who qualifies, or what the requirements are. Knowing more about the process can help you determine if you may be eligible to take advantage of the opportunities an LMIA can provide.
An LMIA is a Labour Market Impact Assessment, this is an employer application for company’s who cannot fill vacant positions with qualified Canadian Citizens or Permanent Residents, and would therefore like to be able to hire skilled foreign workers on either a short term basis (LMIA for work permit) or permanently (LMIA to support PR) to satisfy their employment needs.
This application is processed by Employment and Social Development Canada (ESDC), not by Immigration, Refugee & Citizenship Canada (IRCC) even though the LMIA can be used to support, and is sometimes a requirement for immigration applications such as closed work permits and Permanent Residence.
Employers who are looking to hire foreign worker on a temporary basis (up to 2 years), can apply for the LMIA just for the purpose of having a foreign worker obtain a closed work permit. This option requires the employer to pay a $1000 Government processing fee.
Employers who would like to offer a foreign worker an employment position on a full-time permanent basis can apply for an LMIA to support the foreign worker’s PR application with ‘arranged employment’. This option does not require the employer to pay any government fees, but they will not be able to employ the foreign worker until they have received PR status unless they are already on an open work permit.
Employers who would like to offer a position on a full-time permanent basis to a foreign worker, but would also like to hire the foreign worker on a temporary basis while their PR application is in process, can apply for an LMIA with dual intent. This option requires the $1000 Government processing fee.
Labour Market Impact Assessments are favorable for both small and large companies, as there is no requirement as far as the number of employees on the payroll, or what the income of the company should be. That being said, the chances of an approval are higher for more well established, and profitable companies (companies must be able to prove they are capable of paying the foreign worker’s salary). However, there are a few reasons of employers who do not qualify. An employer cannot be:
The first step in the application process is for the employer to advertise the position in at least 3 places simultaneously for a minimum of 1 month before submitting the LMIA application. This is to establish that they have made a genuine effort to offer this position to Canadian Citizens and Permanent Residents before considering offering the position to a foreign worker.
There are a few key requirements for the advertisements to meet in order for the LMIA to be considered for approval; these include things such as the job title and company name, location of the business, main duties of the position, details of compensation (must meet median wage rate requirements) and benefits, etc. If the Officer processing your case feels that what you are asking for does not match their requirements for that position, you application will likely be refused.
Because the advertisements must be running for a minimum of 1 month before your application can be submitted, being told to repost the ads again if they are done incorrectly the first time can cause major delays in your application process. It is recommended to work with an experienced third party representative from the start in order to ensure that the content of your advertisements meets ESDC’s requirements. Akrami & Associates’ team members specializing in LMIA’s can assist in the drafting and posting of this content, to ensure the application will be considered.
If the employer has not been able to fill the position with a Permanent Resident or Canadian Citizen after advertising for 1 month, they can submit an LMIA application. The application consists of all the information about both the company and the position the Officer requires in while making their decision.
In addition to the application itself, the employer is required to submit a list of supporting documentation:
All of the above documents are required; therefore employers should be certain they are able to provide everything listed before beginning the application process.
LMIA applications can be complicated, especially if you are unfamiliar with the process. It is also important to note that if an application is refused by ESDC and you choose to reapply, the previous submission will be kept on file. Therefore it is important to ensure all of the information is submitted correctly on the first attempt, to give you the best possible chance of receiving an approval. If you require assistance in preparing your LMIA application, Akrami & Associates can provide the guidance and assistance that has helped so many of our clients achieve success in this area of employment immigration.
Although it does not happen in every case, most processing Officers choose to have a phone interview with the employer regarding the content of the application. This is for 2 main reasons; firstly, the officer wants to verify that the employer is genuinely involved in the application process, and is well aware of all the details in the application (this is due to the increase in ‘fraudulent’ applications that have been submitted, which has resulted in increased scrutiny of all applications), secondly, the officer may want to verify any information they have questions about after reviewing the application.
The interview is extremely important, as even a well-prepared application can be rejected if the interview does not go well. It is important for employers to undergo ‘interview preparation’ so that they are aware of what types of questions the Officers may ask, and have that information on hand in case of an interview.
Typically after the interview, the Officer will either request any documentation they may need to verify in order to make a decision, or they will make a decision based on what is already submitted.
LMIA applications do not have a standard processing time, but they can take anywhere from a 1.5-5 months on average. Keep in mind that 1 month of this time is just for advertisements. Once submitted, if an application is accepted into ’10 day processing’, you will have a decision in roughly 2 weeks (or 10 business days). If it is not, the processing time will depend on the Officer, the backlog of applications, if further documentation is required, etc.
If your employer received an LMIA approval, congratulations! This approval can now be used to either support your PR application by being added to your Express Entry profile, used to apply for your closed work permit, or both (depending on what type of LMIA you applied for).
Although the LMIA process can seem overwhelming and complicated, with the right help, it can be a relatively quick and painless application process that helps both the employer, and the foreign worker meet their employment and immigration needs. If you are interested in applying for an LMIA application, contact Akrami & Associates today to set up a consultation, our experienced staff are here to help!
With Akrami and Associates there is always a way!!
