What is a Labour Market Impact Assessment?

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. A positive LMIA is sometimes called a confirmation letter.

If the employer needs an LMIA, they must apply for one.

Once an employer gets the LMIA, the worker can apply for a work permit.

To apply for a work permit, a worker need:

• a job offer letter,
• a contract,
• a copy of the LMIA, and
• the LMIA number.

Employers must meet specific requirements to hire foreign workers and uphold the conditions as set out in the Immigration and Refugee Protection Regulations (IRPR). Employers of temporary foreign workers are expected to be aware of their responsibilities and obligations under the Immigration and Refugee Protection Act (IRPA), and the IRPR.

Employers are responsible for:

• ensuring they meet all of the conditions and requirements of the Temporary Foreign Worker (TFW) Program, as outlined in documents such as the Labour Market Impact Assessment (LMIA) application, the LMIA decision letter and annexes
• keeping all records associated to their LMIA application and any other documents that demonstrate their compliance with the program conditions that are set out in the LMIA decision letter and annexes for a period of six years
• informing Employment and Social Development Canada (ESDC)/Service Canada of any changes or errors relating to an approved LMIA, the temporary foreign worker or the working conditions

Employers must regularly review the activities related to the employment of temporary foreign workers to ensure they continue to uphold the TFW Program conditions. Employers are required to take action to rectify errors and/or non-compliance as soon as it is discovered, and contact ESDC/Service Canada of any changes that occur.

How to get a Positive LMIA?

Step 1: register employer with Service Canada. Will require CRA Payroll Account number and utility bill issued under company’s name

Step 2: Recruitment efforts: We have to run advertisements for 31 days and try to find a Canadian worker

Step 3: We submit LMIA application with below list of documents

Documents Required:

To demonstrate that you can meet the conditions of the job offer, you must submit at least one of the following documents:

• T2 Schedule 100 Balance sheet information T2 Schedule 125 Income statement information
• T2125 Statement of business or professional activities (redact social insurance number)
• T4 or payroll records for a minimum of 6 weeks immediately prior to the submission of this LMIA application, pay periods if the temporary foreign worker already works for you (redact social insurance number)
• an attestation confirming that your business is in good financial standing and will be able to meet all financial obligations to any temporary foreign worker you hire for the entire duration of their employment

To Demonstrate Proof of providing a good or service

If you have received a positive LMIA decision in the past two years and your most recent LMIA decision was positive, then you are not required to provide proof that you are operating a business that is providing a good or service in Canada with your LMIA application.

All Other Employers: You must submit at least one of these documents to demonstrate that you have a legal business that provides a good or a service in Canada:

• municipal/provincial/territorial business license(valid, i.e. not expired)
• T4 Summary of remuneration paid
• PD7A Statement of account for current source deductions
• an attestation confirming that you are engaged in a legal business that provides a good or a service in Canada where an employee could work and a description of the main business activity. Permanent residency stream only, confirmation that the business has been operating for at least one year must also be included in the attestation