An LMIA (Labor Market Impact Assessment) is a labor market verification process where Employment and Social Development Canada (ESDC) assesses an offer of employment to ensure that the employment of a foreign worker will not have a negative impact on the Canadian workforce.  Employers are required to provide information about the position for which they want to hire a foreign worker, including the number of Canadians who applied for the position, the number of Canadians who were interviewed, and detailed explanations for why the Canadian workers considered were not hired.

Typically, foreign workers and employers must go through a two-step process in order to receive a Canadian work permit. First, the employer must submit an application to ESDC for a Labor Market Impact Assessment, and then the foreign worker must make an application to Immigration Refugee and Citizenship Canada (IRCC) for a work permit. The LMIA is issued by ESDC who, after considering numerous market factors, authorizes the Canadian employer to hire a foreign worker.

When looking at the offer of employment, ESDC will consider the following elements:

1. Is the salary offered to the foreign worker consistent with the average for the occupation in the area the position is located?
2. Are the working conditions consistent with labor laws and/or collective bargaining agreements?
3. Is there a labor shortage for that occupation in the area the position is located?
4. Is there an ongoing labor dispute in the company and/or industry?
5. Has the Canadian employer undertaken recruitment efforts in order to find a Canadian to fill the position?
6. Will the foreign worker be able to transfer unique skills or expertise to Canadians?
7. Will hiring the foreign worker help to create or retain jobs for Canadians? Will the foreign worker be the employee of the Canadian employer, whereby the foreign worker is expected to work on a full-time basis at a pre-determined wage?

As an employer, you must comply with all these Temporary Foreign Worker Program requirements for the position they are requesting. One must also ensure that the employment offered to a temporary foreign worker is for a full-time position which means that is has to be for a minimum of 30 hours of work/week. If all these requirements are met, then a positive LMIA will be issued.

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