Canada LMIA and Work Permit Rules Explained
What Is an LMIA?
A Labour Market Impact Assessment (LMIA) is an important document for many Canadian work permit applications.
An LMIA helps show whether hiring a foreign worker will have a positive or neutral effect on Canada’s labour market. Employment and Social Development Canada (ESDC) reviews the employer’s application and makes this assessment.
Therefore, when a work permit requires an LMIA, the applicant must generally include a valid LMIA with the application.
What Does IRCC Check for an LMIA-Based Work Permit?
When a foreign worker applies for a work permit with an LMIA, an Immigration, Refugees and Citizenship Canada (IRCC) officer checks several requirements.
First, the officer confirms that the applicant has a genuine job offer. The officer also checks whether ESDC has given the LMIA a positive decision.
In addition, the officer checks whether the applicant has any inadmissibility or other restrictions that could prevent them from receiving a work permit.
Finally, the officer must be satisfied that the applicant can perform the job they want to take.
When Should You Submit the LMIA?
In most cases, applicants should submit the LMIA with their work permit application.
However, IRCC provides a limited exception for certain people applying from inside Canada.
If the applicant’s current work permit expires in 2 weeks or less, they may qualify for concurrent processing. The applicant must also show that their prospective employer has already submitted a complete LMIA application and allowed enough time for ESDC to process it.
If the applicant meets these conditions, IRCC can give them up to 90 days from the date of submission to provide the positive LMIA.
However, applicants should remember that IRCC treats concurrent processing as an exceptional situation. Employers should not submit an LMIA immediately before the work permit application and expect IRCC to automatically allow this process.
How Does ESDC Assess an LMIA?
ESDC looks at whether hiring a foreign worker will have a positive or neutral effect on Canada’s labour market.
Importantly, ESDC focuses on the specific occupation and job position. It does not simply assess whether the foreign worker personally meets every requirement of the occupation.
To assess the position, the employer provides important job details, including:
- Job title
- Main duties
- Reason the business needs the position
- Expected employment duration
- Language requirements
- Education requirements
- Required experience and skills
- Required licences or certifications
Based on these details, ESDC selects the appropriate National Occupational Classification (NOC) code for the position.
What Happens After ESDC Approves the LMIA?
After ESDC approves the LMIA, it gives the employer a confirmation letter.
The letter contains an LMIA number and important information about the approved job.
For example, the letter generally includes:
- LMIA stream
- LMIA validity period
- Employer name and address
- Employer contact details
- NOC code and occupation
- Job title
- Number of approved positions
- Education requirements
- Language requirements
- Employment duration
- Wage
- Employment location
Therefore, applicants should review these details carefully before submitting their work permit application.
Why Is the LMIA Validity Date Important?
Every LMIA has a validity period. The applicant must submit the work permit application before the LMIA validity date expires.
If the applicant submits the application after this date, the LMIA can no longer support the work permit application. As a result, the officer should refuse the application under the applicable requirements.
However, applicants should not confuse the LMIA validity date with the employment duration.
The validity date tells the applicant how long they have to submit the work permit application. On the other hand, the employment duration tells the applicant how long the employer needs the worker for.
What Is the NOC Code?
The National Occupational Classification (NOC) system classifies jobs in Canada.
ESDC selects the NOC code by looking at the job duties and employment requirements provided by the employer.
The NOC system also uses TEER categories from 0 to 5. These categories describe the level of training, education and experience that an occupation generally requires.
For this reason, IRCC officers check whether the applicant meets the employment requirements connected to the occupation and the employer’s job offer.
Why Do Job Duties Matter?
Job duties play an important role in a work permit assessment.
The LMIA may include duties provided by the employer, duties listed in the NOC, or a combination of both.
Therefore, the IRCC officer checks whether the applicant has the skills and experience needed to perform the proposed job.
The officer may consider factors such as:
- English or French language ability
- Physical ability
- Technical or job-specific skills
- Supervisory experience
- Previous work experience related to the proposed position
For example, a job that requires team supervision may require supervisory skills. Similarly, a position that involves frequent communication may require stronger language ability.
What Are Employment Requirements?
Employment requirements are the qualifications a person generally needs to enter an occupation.
Depending on the job, these requirements may include:
- Education
- Training
- Related work experience
- Apprenticeship
- Licences or certificates
- Professional affiliations
- Other occupation-specific abilities
The NOC uses different terms to describe these requirements.
“Is required” means the qualification is mandatory.
“Is usually required” means most employers generally expect the qualification, although it may not apply in every situation.
“May be required” means some employers may ask for the qualification.
Therefore, applicants should check both the LMIA and NOC requirements when preparing their work permit application.
How Do Wages and Benefits Affect the Application?
Wages also play an important role in the LMIA process.
For most LMIA streams, the employer must offer a wage that meets or exceeds the prevailing wage for the occupation and location.
Depending on the wage, the employer may need to apply through the high-wage or low-wage stream.
Furthermore, officers may review whether the worker can financially support themselves and any accompanying family members.
They may also consider whether the employer has enough funds to pay the promised wages.
If the employer offers additional benefits such as housing, food or transportation, officers may also consider these benefits during the assessment.
How Long Can an LMIA-Based Work Permit Last?
The employment duration in the LMIA helps determine how long the work permit can last.
However, IRCC cannot issue a work permit for longer than the employment period approved in the LMIA.
For example, if the LMIA approves employment for two years, the work permit generally cannot exceed that two-year employment period.
At the same time, other factors can reduce the length of the work permit.
What Happens If Your Passport Expires Earlier?
Passport validity can affect the length of a work permit.
For example, suppose the LMIA allows two years of employment, but the applicant’s passport expires after one year. In that case, the officer may issue the work permit for only one year.
Later, if the applicant gets a passport with longer validity, they may be able to extend the work permit for the remaining period allowed by the original LMIA.
In this specific situation, the applicant does not need a new LMIA if passport expiry caused the shorter work permit.
What Happens When You Continue Working for the Same Employer?
Some workers may continue working for the same employer while they wait for a decision on their work permit application.
When an approved LMIA supports the new work permit, the officer calculates the new permit period from the expiry date of the previous work permit.
For example, imagine that the LMIA approves 12 months of employment. If the worker has already spent three months working under maintained status, the officer may issue the new work permit for the remaining 9 months.
This approach ensures that the worker does not receive a work permit period longer than the employment duration approved in the LMIA.
What If the LMIA Says “Indeterminate or Permanent”?
An employer may request an LMIA for a permanent position.
However, a work permit only provides temporary authorization to work in Canada. Therefore, IRCC cannot issue an unlimited work permit even when the LMIA supports permanent employment.
If the applicant meets the requirements, the officer can issue a work permit for a maximum of 2 years. This period gives the worker time to submit their permanent residence application.
If the worker does not submit the permanent residence application within those two years, they would need a new LMIA to support another work permit.
Final Takeaway
An LMIA plays an important role in many Canadian work permit applications. It helps ESDC assess whether hiring a foreign worker will have a positive or neutral effect on Canada’s labour market.
However, a positive LMIA does not automatically guarantee a work permit.
IRCC still checks the applicant’s eligibility, job offer, qualifications, admissibility and ability to perform the proposed work.
Therefore, applicants should carefully review their LMIA validity date, NOC code, job duties, employment requirements, wages and employment duration before submitting their work permit application.
Get in touch with SPS Global
Receive advice on any of your questions regarding immigration. Get in touch with us, experienced immigration consultants from SPS Global. For additional information, contact support@spscanada.com (Canada) or support.amd@spscanada.com (Ahmedabad), or by phone at (1) 905-362-9393 (Canada) or +919586226232 (Ahmedabad).
