Top 5 Crucial Details of Labour Market Impact Assessments in Canada
Continue reading to discover about the top five most important aspects of Labour Market Impact Assessments in Canada. Certain foreign national workers in Canada must complete their LMIA if they plan to work there. However, some of them may be exempt from displaying an LMIA.
The LMIA is a unique document used by Canadian firms when hiring a temporary foreign worker. This document must be obtained before a foreign worker can submit an application for a work permit. This is because an LMIA demonstrates that the foreign national coming to work in Canada will have a positive or neutral impact on the Canadian labour market.
Jobs excluded from the LMIA do not require a document from the employer to aid a foreign worker’s work permit application. IRCC’s recent announcement about the decline of Canada’s temporary resident population over the next three years has prompted numerous people to accelerate their Canadian journey.
Top 5 Important Details of Labour Market Impact Assessments
The following are the top five important details of LMIA in Canada:
Understanding LMIA
The approved LMIA documentation confirm that the Canadian business has legal right to hire a foreign worker. Furthermore, receiving a positive LMIA is known as a confirmation letter.
LMIA requirement
Unless a firm qualifies for an exemption from LMIA, they must recruit foreign national personnel. LMIA exemptions and needs are determined by a variety of circumstances. The LMIA procedure can be time-consuming, requiring extensive review of supporting documentation. Furthermore, the employer in Canada must meet the following standards to obtain a positive LMIA:
Demonstrates their failure to fill the employment opening locally.
A Canadian employer must show that he made significant attempts to fill the employment opening locally. This suggests that he must have publicly advertised the job openings for at least four weeks in a row. They must demonstrate this before applying for an LMIA online through the government’s job site, JobBank. In addition, they may provide proof in the form of paid platforms or supporting documents.
Present a Transition Plan or a Labour Market Benefit Plan.
Employers in Canada must be able to demonstrate a transition plan that will be submitted alongside the LMIA application. This transition plan must outline the process by which the company tries to acquire workers while also retaining and training PR holders and Canadians to reduce their reliance on the Temporary Foreign Worker Program. Furthermore, high-skilled positions under the Global Talent Stream will require firms to develop a labour market benefits plan that explains the process of hiring a highly skilled foreign person, which will help the Canadian labour market.
The exemptions are as follows:
- Caregivers in Canada have time-restricted jobs, such as emergency repairs.
- Jobs available through the Agricultural Stream and the
- Seasonal Agricultural Worker Program.
- Special skills held by only a few people, such as Senior Managers; TEER Level 0.
Signing an Employment Agreement
The temporary foreign worker and the Canadian employer must negotiate and execute an employment contract to ensure that all parties are aware of their rights and rules. Before entering Canada, TFWs must sign an agreement.
Low-wage occupations – Meet additional standards.
They must provide work benefits, such as affordable housing, transportation, and healthcare, for foreign workers in low-wage jobs. Furthermore, the ESDC may conduct investigations to ensure that companies comply with these requirements.
LMIA application fees payment
Employers will have to pay a processing charge of CAD 1,000 for the digital LMIA application. However, if they are recruited through the Caregiver or Agriculture Worker Streams, they may be eligible for an LMIA exemption. Canada’s LMIA is valid for six months after being issued to a Canadian employer.
Important information on a new Labour Market Impact Assessment for work permit extension
When a foreign national applies for a Canadian work permit, they must produce a valid LMIA. Simply said, even if a work permit lasts longer than the LMIA approval, the foreign worker must apply for it while the LMIA is still active. Additionally, if a foreign worker’s LMIA expires, their employer must obtain a new one before the worker can apply for another work permit or extend their present one in Canada.
Furthermore, if an employer requests a new LMIA, they must understand that ESDC will start the examination process from scratch. Additionally, for ESDC, it will be a new application. As a result, ESDC will now have the authority to ensure that no permanent residents or Canadian citizens are left to fill unfilled job posts instead of TWFs. This will be part of the new application process.
Is it necessary to have an LMIA when working as an entrepreneur in Canada?
There is no LMIA requirement for anyone interested in working as an entrepreneur in Canada. However, foreign nationals arriving in Canada must ensure that their businesses will:
- Establish or retain considerable benefits in terms of social, cultural, and economic factors. OR
- Maintain or create job opportunities for PR holders and Canadian citizens.
Furthermore, private entrepreneurs who wish to start or operate a business in Canada may be excluded from the LMIA requirement. These program applicants must ensure that they have sole ownership or at least majority ownership of the firm they wish to create in this country.
Furthermore, entrepreneurs will be eligible for LMIA exemption only if they can demonstrate that their job is temporary in nature. This category is particularly suitable for seasonal company owners.
Can LMIA increase CRS points for Express Entry applicants?
Although CEC candidates are not required to have an LMIA in order to be eligible for an economic immigration program, it may be advantageous for them and Express Entry candidates to have an LMIA through their company.
A genuine employment offer from LMIA will grant candidates additional CRS points as Express Entry applicants.
As a result, candidates meeting LMIA requirements can improve their prospects of receiving an ITA for PR in Canada from IRCC.
Latest updates on LMIA by IRCC
On March 21, Marc Miller and the employment minister announced several changes to the TFWP. These revisions include two ministers saying that the LMIA’s validity term would be restored to the regular six months. This change was implemented on May 1, 2024.
Prior to this policy amendment, Canada temporarily converted LMIA validity for twelve months during the epidemic phase. This effort aims to enhance employment market conditions in Canada.
Knowing the top five critical features of Labour Market Impact Assessments can help you comprehend them better.
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