An employer seeking to hire a temporary foreign worker in Canada may require a Labour Market Impact Assessment document, better known as an LMIA or confirmation letter, prior to doing so. This document will provide confirmation that a temporary foreign worker is required to fill the job vacancy for the employer, as the employer has been unsuccessful in hiring a skilled Canadian worker to perform the job duties. A positive LMIA document is provided by Employment and Social Development Canada, which provides an employer with permission to hire a temporary worker to fill a role within a labour shortage.
To address key concerns in the labour market, employers across Canada have benefitted from the LMIA application process. There are two types of streams under the Labour Market Impact Assessment applications – high wage and low wage positions.
Under these streams, the provincial or territorial median wage will determine the threshold amounts for each application. The hourly wage of the position that the temporary foreign worker is applying to will determine which application must be completed. If the wage of the position is higher than the median wage, a high wage LMIA application must be submitted, and vice versa. In Canada, PEI currently has the lowest median wage of $21.63, and the highest can be found in Northwest Territories with a rate of $37.30. In Ontario, the median wage is $26.06 as of April 30, 2022.
To start the LMIA process, employers must advertise the position they are seeking to fulfill on three platforms, including Job Bank, for a minimum period of 4 weeks to a maximum of 8 weeks. The longer the post remains active, the more validity you have as an employer to demonstrate that you have made every attempt and effort to hire a Canadian worker for the job opportunity before offering the position to a temporary foreign worker.
Brace Law can assist employers in completing the lengthy application to Service Canada. Within the application, employers must provide a list of required positions they are seeking to fulfill. For every position listed, Service Canada will charge a $1,000 processing fee to process the application. This application can take up to 30-days to process.
The employer is responsible for completing the LMIA application and a temporary foreign worker can apply for a work permit after an employer receives a positive LMIA application. Once approved, the employer must provide an employment agreement to the temporary foreign worker confirming the occupation details remain the same as per the LMIA application, including the position title, wage and working conditions. Note: this agreement can be provided in English or French depending on the preference of the foreign worker.
For more information on the LMIA process and application, contact the immigration lawyers at Brace Law. Brace Law’s experienced team can help you understand LMIA’s and work with you to submit a successful LMIA Application. When you work with Brace Law, you can Consider It Handled!
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