Canada's LMIA (Labour Market Impact Assessment/Employer Sponsorship) Policy and Changes

2015-12-05 02:00:36 HelpTeam

LMIA (Labor Market Impact Assessment/Employer Sponsorship), what is it?


LMIA (Labor Market Impact Assessment/Employer Sponsorship) is a foreign worker permit that the employer applies for at the Department of Labor (ESDC).


What is the LMIA for?


Foreign workers can use the LMIA to come to Canada to work/get a work permit


PR applicants can add 600 points to their applications with the LMIA


Companies can hire foreign workers with special skills/indispensable talents with the LMIA


etc.




How many types of LMIA are there?


Unlike the previous LMO, LMIA is divided into 4 categories as follows


1) The Stream for Higher-Skilled Occupations - High-Wage Workers


2) The Stream for Higher-Skilled Occupations - Low-Wage Workers


3) The Stream for Lower-Skilled Occupations - High-Wage Workers


4) The Stream for Lower-Skilled Occupations - Low-Wage Workers




Who can apply for LMIA?


LMIA can only be applied by employers/emplyers or lawyers/ICCRCs with the authorization of the employer, foreign workers cannot apply on their own.



What is High-Wage and what is Low-Wage?


Low-Wage is below the provincial average wage, High-Wage is above the provincial average wage


Average Wage by Province ($/hour)


Province/TerritoryWage ($/hour)
Alberta$25.00
British Columbia$22.00
Manitoba$19.50
New Brunswick$18.00
Newfoundland and Labrador$21.12
Northwest Territories$30.00
Nova Scotia$18.85
Nunavut$29.00
Ontario$21.15
Prince Edward Island$17.49
Quebec$20.00
Saskatchewan$22.00
Yukon$27.50


Who cannot apply for LMIA?


Accommodation, Food Services and Retail Trade sectors (restaurants/retail trade, etc.) cannot apply for LMIA in areas where the unemployment rate is higher than 6%.


Also, the following occupations cannot apply for the LMIA.


6641 Food Counter Attendants, Kitchen Helpers and Related Occupations


6661 Light Duty Cleaners


6611 Cashiers


6622 Grocery Clerks and Store Shelf Stockers


7611 Construction Trades Helpers and Labourers


8612 Landscaping and Grounds Maintenance Labourers


6672 Other Attendants in Accommodation and Travel


6663 Janitors, Caretakers and Building Superintendents


6662 Specialized Cleaners


6651 Security Guards and Related Occupations




What do employers need to provide?


Job Offer


Business registration or legal incorporation documents (if first LMIA application);


T4 Summary of Remuneration Paid (most current year ending)

◦PD7A Statement of Account for current source deductions (for 12-month period preceding LMIA application)

◦Schedules 100 and 125 - T2 Corporation Income Tax Return (for corporations only - 2 most recent returns filed)

◦T2125 Statement of Business or Professional Activities (for sole proprietorships/partnerships only - 2 most recent returns filed) ;


Recruitment certificate/advertisement


etc.




How many foreign employees can a company have?


For a new LMIA, the company can only have a maximum of 10% foreign employees (in the case of Low-Wage); as of July 1, 2016, the percentage of existing foreign employees (requiring LMIA) cannot exceed 20%.