Canadian employers can now apply for LMIA online

Canadian employers looking to employ Temporary Foreign Workers will now be able to apply for the Labour Market Impact Assessment online. The new pilot project has been launched after several Canadian business leaders called for an improved LMIA process for employers.

The new pilot will allow employers under the Temporary Foreign Workers Program to register online. Employers will also be able to manage their accounts, transact and correspond through their online accounts.

The online portal would use the same login credentials as the Job Bank for Employers. The portal will also have a questionnaire to guide employers on filing an LMIA online. Employers would also be able to track the progress of the LMIA application online. They would also be able to upload necessary documents and receive correspondence from Service Canada on the portal.

Canadian businesses, for many years now, have been asked for reduced red tape around employing foreign workers. Several recommendations for improvement have been put forth by Canadian business groups like the Canadian Federation of Independent Business and the Canadian Chamber of Commerce.

The Canadian Chamber of Commerce had recommended the use of an online portal to modernize the  LMIA application process back in 2017. The CFIB has recently released its report highlighting the problems faced by small and mid-sized businesses in hiring Temporary Foreign Workers.

Corinne Pohlmann of CFIB says that the LMIA process was lengthy, complicated and expensive. The process could use several reforms, but an online system is a step in the right direction.

Earlier, employers had no way to track their LMIA applications. The average wait time varied between three and twelve months. There was also no process for businesses to get their questions answered.

To hire foreign workers, employers must first obtain an LMIA. The LMIA proves that the business tried to hire Canadian workers first before looking for workers overseas. The fee for each LMIA applications is $1,000. Even if the application is rejected, the fee is not refundable. Employers were also not notified why the application was rejected in the first place. Hence, it became difficult for employers to decide whether they should reapply or not.

Ms Pohlmann says improving communication and reducing the processing times are some of the most vital reforms the Govt. needs to make to improve the LMIA process.

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