LMIA Renewal

Overview

A Labour Market Impact Assessment (LMIA) is a document that most Canadian employers need to get before hiring a temporary foreign worker (TFW). A positive LMIA indicates that there is a need for a foreign worker to fill the job and that no Canadian worker or permanent resident is available to do the job.

LMIA renewals are not simply extensions; they involve a new assessment process by Employment and Social Development Canada (ESDC)/Service Canada. Employers must demonstrate a continuing need for the temporary foreign worker and ensure they have complied with all conditions of the previous LMIA and employment. The renewal process is critical for employers who wish to retain their experienced TFWs and for TFWs who wish to continue working in Canada under the same employer.

How it works

When an employer anticipates the need to continue employing a temporary foreign worker beyond the initial work permit's validity, they must apply for a new LMIA, often referred to as an LMIA renewal, well in advance of the existing LMIA and work permit expiry. This new application is assessed based on current labour market conditions and the employer's compliance history. The process involves submitting a new application, paying the processing fee, and providing documentation to support the continued need for the TFW. If a positive LMIA is issued, the TFW can then apply for a new work permit.

Who it's for

This process is for Canadian employers who previously obtained a positive LMIA and wish to continue employing the same temporary foreign worker in the same position. It is also for temporary foreign workers whose work permits are expiring and whose employers wish to retain their services. Both parties must meet specific criteria related to the foreign worker program, including compliance with wage, working conditions, and recruitment efforts.

To be eligible for an LMIA renewal, both the employer and the temporary foreign worker must meet certain criteria.

Employer Eligibility:

• Demonstrate Continued Need: The employer must prove that there is a persistent labour shortage and that efforts to recruit and train Canadian citizens or permanent residents for the position have been unsuccessful or are not feasible.
• Compliance History: The employer must have a positive compliance history with ESDC/Service Canada regarding previous LMIAs and the Temporary Foreign Worker Program (TFWP). This includes adhering to wages, working conditions, and job duties outlined in the original LMIA application and employment contract.
• Genuine Job Offer: The job offer must be genuine, full-time, and meet provincial labour laws and regulations.
• Business Legitimacy: The employer's business must be legitimate and actively operating in Canada.
• Transition Plan (for high-wage positions): For high-wage positions, employers are generally required to update and demonstrate progress on their approved transition plan to reduce reliance on temporary foreign workers over time.

Temporary Foreign Worker Eligibility:

• Valid Status: The temporary foreign worker must maintain valid legal status in Canada throughout the renewal application process.
• Same Position: Generally, the renewal is for the same position and same employer as the original LMIA. Significant changes may require a new LMIA application rather than a renewal.
• Compliance with Work Permit Conditions: The worker must have complied with all conditions of their previous work permit.
• Provincial/Territorial Requirements: Depending on the province or territory, additional requirements may apply.

Employers applying for an LMIA renewal will need to provide a comprehensive set of documents to support their application. The exact list can vary depending on the stream (e.g., high-wage, low-wage, agriculture) and specific circumstances, but commonly includes:

• LMIA Application Form: The most recent version of the LMIA application form (e.g., EMP5593).
• Business Registration Documents: Proof of active business operations in Canada (e.g., business license, registration, incorporation documents).
• Financial Documents: Evidence of the employer's financial ability to pay the specified wages and cover operational costs (e.g., bank statements, financial statements, T4 summary).
• Previous LMIA and Employment Contract: A copy of the original positive LMIA and the employment contract with the temporary foreign worker.
• Payroll Records: Documentation demonstrating that the temporary foreign worker has been paid according to the wages specified in the original LMIA.
• Recruitment Efforts: Evidence of ongoing or new recruitment efforts to hire Canadian citizens or permanent residents for the position, even for renewals. This includes copies of advertisements, where they were posted, and the results of those efforts.
• Transition Plan Update (for high-wage positions): An update on the progress of the transition plan submitted with the original LMIA.
• Temporary Foreign Worker's Passport and Work Permit: Copies of the worker's passport, current work permit, and any previous LMIAs or work permits.
• Job Description: A detailed description of the job duties and requirements.
• Provincial/Territorial Business Licensing: Any specific licenses or permits required for the business operation in the province or territory.

The LMIA renewal process involves several key steps for the employer:

1. Assess Continued Need: The employer first assesses whether there is a genuine and continued need to employ the temporary foreign worker. This includes evaluating labour market conditions and the success of previous recruitment efforts.
2. Prepare Documentation: Gather all necessary documents, including business records, financial statements, payroll records, previous LMIA and work permit copies, and proof of recruitment efforts.
3. Complete LMIA Application Form: Fill out the appropriate LMIA application form accurately and completely. Ensure that all details regarding the job, wages, and working conditions are consistent with the previous LMIA or reflect any approved changes.
4. Pay the Processing Fee: Submit the non-refundable LMIA processing fee of CAD $1,000 to ESDC/Service Canada.
5. Submit Application: Submit the complete LMIA application package to the appropriate ESDC/Service Canada processing centre. This can often be done online through the LMIA Online Portal.
6. Application Assessment: ESDC/Service Canada will review the application, potentially requesting additional documentation or conducting an employer inspection. They will assess the genuineness of the job offer, the impact on the Canadian labour market, and the employer's compliance history.
7. Receive Decision: If the application is successful, ESDC/Service Canada will issue a new positive LMIA. If refused, reasons will be provided.
8. Temporary Foreign Worker Applies for Work Permit: Once a positive LMIA is received, the temporary foreign worker can apply for a new work permit with IRCC, attaching the new LMIA.

The ability for family members to accompany the temporary foreign worker (TFW) depends on the TFW's eligibility for an open or spousal open work permit, which is typically linked to the TFW's skill level and the duration of their work permit. If the TFW is granted a new work permit based on a renewed LMIA, their spouse or common-law partner may be eligible for an open work permit if the TFW is working in a high-skill occupation (NOC 0, A, or B). Dependent children may be eligible to apply for visitor records or study permits. Eligibility for family members' permits is assessed independently by IRCC and requires separate applications and fees. It is crucial to verify the specific criteria for accompanying family members on the IRCC website.

A positive LMIA renewal allows the employer to support a new work permit application for the temporary foreign worker. Upon approval of the new work permit, the temporary foreign worker is authorized to work for the specific employer, in the specific occupation, and at the location listed on the LMIA and work permit. The work permit is generally a closed work permit, meaning the worker cannot change employers or occupations without obtaining a new LMIA and work permit. Adherence to all conditions of the renewed work permit is mandatory, including working hours, wages, and job duties.

An LMIA renewal itself does not directly provide a pathway to permanent residency (PR). However, working in Canada under an LMIA-supported work permit can significantly contribute to a temporary foreign worker's eligibility for various permanent residency programs. Many economic immigration programs, such as the Canadian Experience Class (CEC) or provincial nominee programs (PNPs), award points or have eligibility streams based on Canadian work experience. A renewed LMIA and subsequent work permit allows the individual to accumulate more eligible Canadian work experience, which can be a critical factor in Express Entry profiles or PNP applications. Some PNPs also have specific streams for workers with valid job offers supported by an LMIA. Therefore, while not a direct pathway, it can be a vital step in meeting the requirements for future PR applications.

LMIA renewal applications, like initial LMIA applications, can be refused for several reasons:

• Failure to Demonstrate Continued Need: The employer cannot sufficiently demonstrate a persistent labour shortage or that they have made genuine efforts to recruit Canadian citizens or permanent residents.
• Non-Compliance with Previous LMIA: The employer has failed to meet the conditions or commitments of a previous LMIA, such as paying the promised wages, providing suitable working conditions, or fulfilling a transition plan.
• Incomplete or Inaccurate Application: The application form is missing required information or documents, or contains inconsistencies.
• Negative Impact on Canadian Labour Market: ESDC/Service Canada determines that issuing a new LMIA would have a negative impact on the Canadian labour market, potentially displacing Canadian workers.
• Employer Ineligibility: The employer's business is not legitimate, or they have a history of non-compliance with other government regulations.
• Misrepresentation: Any false statements or misrepresentation of facts in the application documents.
• Failure to Pay Fees: The LMIA processing fee was not paid or was submitted incorrectly.