Processing Restrictions Lifted for Certain LMIA Applications

Processing Restrictions Lifted for Certain LMIA Applications

Labour Market Impact Assessments (LMIA) are conducted by Employment and Social Development Canada (ESDC or “Service Canada”) and consider the benefit to the Canadian labour market of hiring a foreign worker for a specific occupation. Once an employer receives an LMIA confirming hiring a foreign worker will either be a neutral or positive impact on the labour market, the applicant can apply for his or her work permit.

However, did you know ESDC can refuse to process an LMIA in certain cases? These restrictions on processing are either based on:

  • Regulatory Authority
    • For instance, Immigration regulations include authority that prevents ESDC from processing applications for those engaged in regularly offering services in the sex industry as well as Employers who are determined to be ineligible. IRCC publishes a list of ineligible employers on its website and this is regularly updated.
  • Ministerial Instructions (essentially public policy considerations):
    • For instance, for low-wage positions above the current cap (percentage of foreign workers vs. percentage of Canadians or permanent residents)
    • In-home caregiver positions where there is a live-in requirement
    • Any position if the employer has had an LMIA revoked in the past 2 years

There are two important changes where Employment and Social Development Canada (ESDC) has resumed processing LMIAs due to Public Policy considerations:

1) As of April 30, 2022: the Refusal to Process (RTP) policy that automatically refuses LMIA applications for certain low-wage occupations in regions with an unemployment rate of 6% or higher will no longer be in effect

Occupations impacted include:

Occupations in the Accommodation and food services sector (North American Industry Classification System (NAICS) code 72)

Occupations in the Retail Trades sector (NAICS codes 44 to 45)

Occupations classified under the National Occupational Classification (NOC) codes 6541, 6611, 6622, 6711, 6721, 6731, 6732, 6733, 7611 and 8612

2) As of May 1, 2022: the Refusal to Process LMIA applications for certain occupations in Alberta will no longer be in effect

Low-Wage Cap

There are also considerations for Low-Wage Workers, who are subject to a cap. As of April 30, 2022: Employers are capped at a 20% limit on the number of foreign workers in low-wage positions at the same location

    • For applications received between April 30, 2022 and April 30, 2023 from employers are eligible for a cap limit of 30% if hiring workers in low-wage positions in the following defined sectors and sub-sectors:
      • Construction (NAICS 23)
      • Food Manufacturing (NAICS 311)
      • Wood Product Manufacturing (NAICS 321)
      • Furniture and Related Product Manufacturing (NAICS 337)
      • Hospitals (NAICS 622)
      • Nursing and Residential Care Facilities (NAICS 623)
      • Accommodation and Food Services (NAICS 72)
    • Exemptions to the cap are narrow and include:
      • on-farm primary agricultural position
      • caregiving positions in a private household (NOC codes 3012, 3233, 4411 and 4412) or in a health care facility
      • positions for which the employer is applying to support a temporary foreign worker’s permanent residence under an Express Entry Program
      • highly mobile or truly temporary positions (120 calendar days or less);
      • low-wage positions in seasonal industries that do not go beyond 270 calendar-days

Read all about it here, on Employment and Social Development Canada (ESDC)’s official website:

#canada #compliance #refusaltoprocess #immigration #news

Photo Alt text: ESDC Canadian Immigration New Processing Update

Related posts