Exemptions to LMIA Requirements

Exemptions to LMIA Requirements

A Labour Market Impact Assessment (LMIA) assesses the impact of employing a foreign worker in Canada. It is issued by the Economic and Social Development Canada (ESDC). If the LMIA is positive, it means the position has to be filled with a temporary foreign worker. In contrast, a negative LMIA means the position has to be filled with a Canadian citizen or permanent resident. However, the LMIA requirement has some exemptions.

By LMIA exemption, it means the employer need not obtain an LMIA to appoint a foreign worker. LMIA-exemptions are mainly organized through the International Mobility Program (IMP). ESDC, together with the Immigration, Refugees and Citizenship Canada (IRCC), maintains an index of these LMIA-exemptions.

International Mobility Program

Under the International Mobility Program (IMP), Canadian employers can hire foreign workers without needing an LMIA. An employer is eligible for LMIA-exemptions under the following conditions:

• If the appointment of the foreign worker results in broader economic, cultural or other competitive advantages for Canada
• If reciprocal benefits are enjoyed by Canadians and permanent residents.

Hiring a worker through IMP involves three steps:

• Confirming that the position or worker in question qualifies for an LMIA-exemption
• Paying the employer compliance fee of $230
• Submitting the official job offer through the IMP’s Employer Portal.

After the employer completes these steps, the foreign worker can apply for a work permit. LMIA-exempt workers may enjoy expedited processing of work permit through the Global Skills Strategy, provided their position is NOC Skill Level A or 0, and they are applying from outside of Canada.

International Agreements

Many LMIA exemptions are available as per the international agreements of Canada with other countries. Certain types of employees who come to Canada on transfer can enjoy LMIA exemption if they are able to prove that their appointment would make a positive impact on the Canadian labour market. LMIA-exemptions are available under the following international agreements of Canada:

• North American Free Trade Agreement (NAFTA)
• Canada-Chile FTA / Canada-Peru FTA / Canada-Colombia FTA / Canada-Korea FTA
• (CETA)Canada-European Union Comprehensive Economic and Trade Agreement
• General Agreement on Trade in Services (GATS)

Canadian Interest Exemptions

LMIA-exemptions are allowed under this category upon demonstrating that the exemption will be in the best interest of Canada. It can be either by the position being of significant benefit to Canadians or through the maintenance of reciprocal employment relationships with other nations. To avail LMIA-exemption under the category of significant benefit for Canadians, it must be proved that the hiring of the foreign worker will result in a significant social or cultural benefit to Canada. The immigration officers assess this significant benefit on the basis of the past record of success of the foreign national and by examining testimony and recommendations of distinguished experts in the respective field.

Intra-Company Transferees

LMIA-exemption for the significant benefit can also be secured through the provision for intra-company transferees. Certain international companies can transfer their foreign employees to Canadian branches, for improving the quality of their business as well as for the benefit of Canadians.

Other LMIA-Exemptions

LMIA exemptions are also granted on humanitarian grounds. Besides, certain candidates for Canadian permanent residency may also be eligible to apply for LMIA-exempt work permits.