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Get LMIA in Canada in 2024 - Processing Time, Fees & Process
Get LMIA in Canada in 2024 - Processing Time, Fees & Process
Get LMIA in Canada in 2024 - Processing Time, Fees & Process
Home » LMIA Canada 2024 Guide on Processing Time, Fees and Process
If you’re a Canadian employer considering hiring someone from another country, you might be required to apply for LMIA (Labour
Market Impact Assessment) first. This article is here to help you understand everything about LMIA. We’ll explain how the process
works, what you need to do, the paperwork involved, how much it costs, when to expect things to happen, and what rules you must
follow. Plus, we’ll give you some tips to make your LMIA application successful and answer some common questions that Canadian
employers often have.
Canadian workers.
Not all employers are required to apply for LMIA. Check if you can hire your foreign worker without LMIA through one of the
International Mobility Programs.
Advertisement Costs: If you are advertising on multiple paid platforms (which is recommended), your expected budget should
be around $500-$600.
LMIA Application Fee: The government fee for an LMIA application is $1,000 per employee.
Work Permit Fees: If you are covering your worker’s work permit application fees, be prepared to pay an additional $480-$550
to cover your worker’s application fees, biometric collection fees, and medical examination costs.
Legal Fees: Depending on the complexity of the case and the required legal assistance, fees can range from $3,000 to $7,000
per worker.
Note that this estimate does not include additional costs, such as the worker’s return airplane ticket to Canada, which may be
necessary depending on the job offer and the wages provided.
It is crucial for employers to understand that they are legally obligated to bear all costs related to the LMIA application. Canadian
law strictly prohibits employers from passing these costs on to foreign workers, whether directly or indirectly. This prohibition
includes charges for recruitment, job orientation, First Aid training, and any other related fees. Additionally, ensure that the
recruiters and third-party individuals assisting in hiring foreign workers do not charge any fees to foreign workers under any
pretext. Violating this regulation can lead to severe consequences, including the reimbursement of fees to the worker, a ban from
the foreign worker program, hefty penalties, and even criminal prosecution.
Search the NOC: Visit NOC 2021 and search your occupation by title.
Review multiple NOC options: Based on our experience, in most instances, you’ll find several NOC occupation classifications to
consider for each position. Given the extensive range of job titles in the 2021 NOC, along with considerable overlap among
them, selecting the right NOC entails carefully assessing the lead statements in the NOC, the listed job duties, and the
employment requirements. Do not just rely on the official job title when determining the most suitable NOC. It’s crucial to align
your job duties and the employment requirements with the duties and the job requirements listed in one or more relevant
NOCs.
Assess the local market conditions: Among other things, your NOC choice should consider the overall labour market situation
for each NOC occupation classification in the particular geographic region. You should research the labour market situation for
each potential NOC occupation (Job Bank Labour Market Information is a good starting point) and hopefully arrive at an NOC
occupation classification that is an accurate reflection of the proposed job offer and where there also is a recognized shortage
of local talent.
Confirm the minimum wage for the position: In addition to assessing the local labour market conditions, you must also ensure
that the prevailing wage for your chosen NOC occupation classification is within your budget (see Determining the Prevailing
Wage Rate below). Many employers set wages for foreign employees based on what others in their company earn or what the
applicant agrees to. However, to get a positive LMIA, you must offer the prevailing wage rate to the foreign worker. This
sometimes might mean paying your foreign talent more than your existing employees.
Ensure that your candidate meets the requirements for the NOC: Lastly, you must ensure that the proposed candidate satisfies
the employment requirements for the proposed NOC occupation classification. While ESDC will generally not evaluate whether
the foreign worker satisfies the employment requirements, the CBSA or Visa Officer who ultimately issues a Work Permit will no
doubt perform this evaluation. There is nothing more frustrating than having your foreign worker’s application to work in
Canada refused after you’ve gone through the hassle of securing a positive LMIA.
Visit the Job Bank website, and in the Explore the Market section, select “by wages”. From there, type in the 4-digit NOC
classification.
You may then select the relevant options based on the geographic location. If there is no recorded wage for the relevant
occupation or the geographic region, refer to the Provincial and then National median wage.
The median wage is the wage that must be met. However, note that some ESDC officers have verbally indicated that where a
position is very senior, they may expect a higher wage salary to be offered.
If you are reluctant to offer the median wage to your foreign worker, your LMIA will fail. If you offer alternative forms of
compensation, such as commissions, for example, the base salary must meet the prevailing median wage rate. Also, note that
employers must review prevailing wages periodically and ensure that their foreign workers are paid the prevailing wage at the start
of and throughout their employment period.
Job title
Job duties (if advertising for multiple vacancies, specify duties for each). Do not just copy/paste duties from the NOC
occupation classification.
Language requirements
Number of positions
Contact details of the employer: email address, fax number, or mailing address
Once your job advertisement is active on Job Bank, you can then post your job ad on other sources. Although you are required to
post on 2 additional sources besides the Job Bank, having your job advertised on 3-4 additional platforms can act as a safety net. If
one source is deemed unacceptable, you can rely on the others to support your LMIA application. In our practice, we usually
advertise on at least 5 different platforms, including Job Bank. It’s crucial to target underrepresented groups in your advertising
efforts to meet the new, stricter requirements set by Service Canada and ESDC. This includes advertising on sources that target
groups such as Indigenous persons, vulnerable youth, newcomers, and persons with disabilities. The selection of advertising
platforms should be strategic, ensuring they are consistent with the occupation and target an audience with the appropriate
education, professional experience, or skill level required.
As an employer, you have the option to utilize various recruitment strategies, such as:
Print media, including national or provincial/territorial newspapers, magazines with national reach, specialized journals, and
newsletters from professional associations.
General employment websites (examples include Indeed.ca, canadastop100.com, vault.com, eluta.ca, glassdoor.ca, LinkedIn,
workopolis.com, monster.ca, etc.).
Occupation-specific websites tailored to particular fields like accounting, marketing, biotechnology, education, engineering, and
more.
However, make sure to diversify your recruitment efforts and avoid using advertising channels that target the same demographic.
For instance, do not use Workopolis.com and Monster.ca simultaneously or Craigslist and Kijiji to prevent overlap in audience
targeting.
In our practice, a job advertisement for an LMIA may look like this:
Source 1: Canada-wide source: Indeed.ca, Monster Jobs, Glassdoor or Eluta.ca (Cost: $200-$600 for 4 weeks)
Source 4: Vulnerable Group 1: Newcomers and new immigrants: newimmigrantjobs.ca (approx. $50)
Maintain consistent proof of advertisement: Ensure that all your ads, including those on Job Bank, run simultaneously for 4
weeks. Collect evidence of your job postings weekly. You must submit documentation with your LMIA application showing that
the job was advertised for at least four consecutive weeks with no gaps. This is crucial, as even a single day’s gap can
jeopardize the LMIA application.
Be proactive with Job Bank: If a post is nearing its end date, renew it promptly to prevent any advertising gaps. This will help
maintain continuous proof should ESDC review your recruitment efforts.
Be proactive with documentation: Don’t wait until the end of the advertising period to gather proof. Some websites may refresh
posts, which can make it appear as though the advertisement wasn’t up for the full 4 weeks. Weekly, timestamped screenshots
are invaluable for providing the necessary evidence.
By following these tips, you can demonstrate to ESDC that you have made a bona fide effort to fill your job vacancy domestically
before seeking to hire foreign workers through the LMIA process.
It’s a common misconception among employers that offering a job to a local candidate precludes proceeding with an LMIA
application. This “all or nothing” belief is unfounded. You can continue with your LMIA application even after hiring a local candidate
for the position. A positive LMIA decision can serve as a contingency for up to 12 months, providing flexibility should issues arise
with your new hire or additional vacancies emerge. In practice, hiring locally can actually bolster your LMIA application and improve
your chances of approval.
Finally, it’s crucial to document your recruitment efforts comprehensively. If you’re unsure how to proceed, consider downloading
our free Recruitment Efforts Report template for guidance.
LMIA Application Form: A completed and signed application form for the specific LMIA stream you are applying for.
Business Legitimacy Documents: Documents that prove the legitimacy and legal status of your business, such as a business
license, incorporation documents, and tax documents.
Job Offer Letter: A detailed job offer letter to the foreign worker outlining job duties, wages, conditions of employment, and
other relevant details.
Recruitment Efforts Documentation: Evidence of job advertisements across various platforms (e.g., Job Bank, other job boards,
print media), and your Recruitment Efforts Report, outlining the number of applicants and reasons for not hiring them
(download sample here).
Transition Plan: For high-wage positions, a plan detailing how the employer intends to reduce reliance on temporary foreign
workers in the future.
Processing Fee: $1,000 per worker, required for most types of LMIAs.
Union Consultation (if applicable): If the job is in a unionized position, proof of consultation with the union.
Additional Documents for Specific Streams: Depending on the LMIA stream, additional documents may be required. For example,
agricultural and low-wage LMIA streams have specific requirements regarding housing arrangements and transportation plans for
workers.
Who should attend the interview with ESDC? Appoint a person from your company who has a deep understanding of your
business and its operations. This individual should be prepared to discuss the specifics of the job role, the necessity for a foreign
worker, and the efforts made to recruit domestically. Additionally, having your legal representative present during the interview
can be highly beneficial. They can provide clarity and support in answering any legal questions posed by ESDC officers,
ensuring that your responses are accurate and comply with relevant laws and regulations.
Have your documents ready: documentation and detailed records are your best allies. Ensure you have all relevant information
at your fingertips, including your legal and operating names, Business Number (BN), and contact details. Be prepared to discuss
your recruitment efforts in detail: where you advertised the position, the number of applicants, the interview process, and
specifically why Canadian applicants were not suitable or could not be trained for the position. This includes providing a
breakdown of the qualifications, experience, and skills you are seeking and how the applicants did not meet these criteria.
Practice interview questions: Lastly, practice interview questions in advance with your legal representative. You must be able to
clearly explain how hiring a foreign worker will benefit your business, such as filling a labour shortage, leading to job creation or
retention of Canadian employees, or facilitating the transfer of skills or knowledge. You can practice your answers by
downloading our complimentary guide featuring Practice Interview Questions with ESDC Officers.
Remember, the goal of the LMIA interview is to ensure that hiring a foreign worker will not adversely affect the Canadian labor
market. Demonstrating a genuine need for a foreign worker, backed by thorough documentation and a clear understanding of your
business and the job role, will help make your case compelling to the ESDC officer.
In addition to a detailed job offer, providing your worker with a letter of support can significantly bolster their application. This
letter should articulate why you believe the candidate possesses the necessary skills for the job and detail the process used to
assess these skills. If language barriers exist, make sure to address how the worker can effectively perform their duties despite
limited language proficiency. In your letter, explain any accommodations or support systems your workplace offers to help
overcome language challenges, such as language training programs, the presence of bilingual staff, or other resources that facilitate
communication. By taking these steps, you not only enhance the chances of a successful work permit application but also
demonstrate your commitment to supporting your foreign worker’s transition into your company and Canada’s labour market.
The first requirement for all employers is to show evidence that they have attempted to search for qualified domestic workers
who are Canadian citizens or permanent residents. You have no choice but to hire foreign workers because you cannot find
suitable talent.
The second requirement depends on whether you plan to hire a high-wage or a low-wage employee. If you plan on paying your
foreign workers above the province’s median wage, they will be classed as high-wage for LMIA purposes. They will be classified
as low-wage workers if paid below your province’s median wage.
The third requirement entails inspecting compliance with regulations and reporting on the Transition Plan’s progress. This
requirement is only applicable to employers that have already been employing foreign workers under LMIA.
You can do so by recruiting, retraining, and/or upskilling workers who are Canadian citizens or permanent residents. Employers can
also show how they are helping their high-skilled temporary foreign workers to become permanent residents in Canada.
If your company has 10 or more employees, the allowable proportion of temporary foreign workers you can employ is 20%. For
applications that are submitted between 30 April 2022 and 30 August 2024, employers hiring workers in the following sectors and
sub-sectors are eligible for a cap limit of 30%:
You must cover the costs of transportation to Canada at the beginning of the work period and return to the home country of your
temporary foreign worker. You must also ensure suitable and affordable housing for your workers.
Your requirements may vary depending on your business and long-term plans of employing international talent.
How Many Points for LMIA under the Express Entry program?
For a successful LMIA application, a foreign worker can receive 50 or 200 points for specific senior positions under the
Comprehensive Ranking System (CRS). These points apply to foreign workers’ FSW, FST, and CEC program applications.
All LMIAs, including the Owner-Operator LMIAs, are issued by the ESDC.
Is LMIA Free?
LMIA process is not free. If a company applies for an LMIA, they will have to pay $1000 per application. However, there are
exceptions where employers may pay less. These are dependant on the salary of the position as well as the immigration program.
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