Examining what a Labour Market Impact Assessment is

Published on September twenty ninth, 2022 at 10:00am EDT

group of employees standing together smiling

Canadian employers could must get a Labour Market Impact Assessment (LMIA) earlier than hiring a international employee.

An LMIA is an employer-requested doc that firms seeking to rent short-term international staff below the Temporary Foreign Worker Program (TFWP) — a program designed to make use of international nationals and quickly tackle labour shortages at instances when no certified Canadians can be found to work such positions. Employers will submit as proof that their hiring of international staff won’t have a unfavourable impact on the Canadian labour drive.

It is important to Canada’s upkeep and development that the nation preserves a robust and growing naturalized Canadian workforce, which necessitates the usage of LMIAs to help in attaining this aim.

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Basics of an LMIA

Understanding the idea of Labour Market Impact Assessments requires an preliminary understanding of how they’re facilitated.

Before addressing a number of nuances of LMIAs, listed below are a number of common elements which might be pertinent to those assessments. As a part of this course of, employers should:

  • Prove that no certified Canadians had been handed over for the job in favour of a international employee
  • Guarantee that the employed international employee will probably be paid a wage and offered advantages that meet federal and provincial requirements
  • Prove that they’ve tried, previous to in search of out a international worker, to discover a Canadian citizen or everlasting resident for the vacant place

LMIAs are additionally not as cut-and-dry as they could appear. In different phrases, employers can not simply merely apply for an LMIA instantly when a job at their group is open. Canada requires that employers promote a vacant job alternative for at least 4 weeks previous to making use of for an LMIA. In these 4 weeks, the employer should even have marketed the place utilizing a minimum of three recruitment strategies — one particularly being the Canada Job Bank.

Nuances relating to the LMIA course of

The variance, or nuance, that exists relating to the LMIA course of surrounds whether or not the international employee that an organization is seeking to rent will probably be categorised as a “high wage” or “low wage” worker.

The major distinction between LMIAs for these two classifications is the added requirement of a “transition plan,” however that will probably be addressed in every of the next sections, as required.

LMIAs for high-wage staff

A transition plan will probably be necessary as a part of the LMIA submission course of if an employer will probably be paying the employed international employee at a charge equal to or above the median provincial/territorial wage.

Designed to make sure that there’s a progressively lowering reliance on short-term international staff, transition plans support the Canadian authorities in figuring out that an organization’s hiring practices relating to international staff align correctly with the targets and intentions of the TFWP.

As talked about beforehand, the Canadian authorities prioritizes giving Canadian nationals the primary likelihood at accessible jobs. Transition plans help with this aim by proving that the TFWP is being utilized in a restricted capability and as a final resort to fill employment gaps quickly when no different choices exist.

LMIAs for low-wage staff

Conversely, the LMIA course of for hiring international staff that will probably be paid below the median wage for a specific province or territory — in any other case categorised as “low wage” staff — doesn’t necessitate the submission of a transition plan.

In its place, and largely to limit the exploitation of the TFWP by an employer, the Canadian authorities has capped the variety of short-term international staff {that a} enterprise can make use of below this “low-wage” employee class. Any firm with 10 or extra staff can have not more than 20% of their workforce be categorised as “low-wage temporary foreign workers”.

Moreover, not all low-wage occupations are eligible for LMIA processing.

Additionally, there are nonetheless sure necessities that employers hiring low-wage staff should fulfill rather than submitting a transition plan.

Employers hiring low-wage international staff should:

  • Pay for the employee’s round-trip transportation
  • Ensure reasonably priced housing is obtainable
  • Pay for personal medical insurance till staff are eligible for provincial protection
  • Register the short-term international employee with the provincial/territorial office security board
  • Provide an employer-employee contract

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