Hiring a Foreign National Using an LMIA
When a Canadian or foreign business wants to hire a foreign national in Canada using a Labour Market Impact Assessment (LMIA), the business must provide supporting documents to immigration authorities. These documents prove the business is legitimate, active in Canada, and financially capable of paying the foreign national.
The LMIA Application Process
When a Canadian or foreign employer wants to hire a foreign national, the general rule is that they first need to apply for an LMIA. This is essentially asking the government for permission to hire a foreign worker, after proving there’s no qualified Canadian to do the job.
While this is the general rule, there are exceptions. Sometimes, an LMIA isn’t required, and the business legitimacy requirement may vary. But for now, we’ll focus on the requirement as it applies to LMIA applications.
What Happens in the LMIA Application?
The LMIA application is submitted by the employer, not the potential employee. The application tells the government, “We’ve tried to find a Canadian for this job. We posted jobs for at least four weeks, but we couldn’t find anyone qualified.” Based on this, the employer asks the government for permission to hire a foreign national.
If the LMIA is approved, the government issues a positive LMIA. The employer can then give this positive LMIA to the foreign national, who can use it to support their work permit application. That’s the LMIA process in short.
Proving Business Legitimacy
As part of the LMIA process, the employer must prove to immigration authorities that their business is legitimate. This is especially important if they haven’t applied for an LMIA recently. The government needs to know the business is still active in Canada.
The employer must provide documents showing the business is active. These could include a municipal, provincial, or federal business license. Tax documents like T4 statements may also be required to show the business is operating in Canada.
What If Documents Are Unavailable?
In some cases, the business may not be able to provide these documents right away. In those situations, an attestation letter from a lawyer or certified accountant in Canada can be used instead. But in general, the employer must provide certain prescribed documents to meet this requirement.
The government wants to be sure that the business is legitimate and still operating. This is crucial for any LMIA application.
Meeting the Terms and Conditions of the Job Offer
Another requirement of the LMIA application is showing that the business can meet the terms of the job offer to the foreign national. For example, the employer must prove they have the financial means to pay the salary.
They’ll do this by providing tax documents that show their financial situation. If these documents aren’t available, they may use an attestation letter from a lawyer or accountant.
Bolstering the Application
Sometimes, a business may feel the documents they’ve provided aren’t convincing enough. They might need to provide tax documents, but the numbers may not look ideal. In those cases, it might be helpful to add more documents to show the business can meet the job offer’s terms.
For example, one of our clients had operations in the US and other countries. They included financial documents from their non-Canadian entities to prove to immigration authorities that they were a well-established company with strong finances. This helped meet the LMIA requirements.
Conclusion
Meeting the business legitimacy requirement is a critical part of the LMIA application process. Employers must prove that their business is active, legitimate, and financially capable of meeting the terms of the job offer to the foreign national. Providing the right documents and, if necessary, supplementary information like an attestation letter, can help ensure that the application is successful. Understanding these requirements can save businesses time and hassle when navigating the LMIA process.
