01
Genuine Business
The employer may need to demonstrate that it operates a genuine and legitimate business capable of providing the employment offered.
WORK & LMIA
Labour Market Impact Assessment
Understand when a Canadian employer may need an LMIA to hire a temporary foreign worker and how the employer and work permit processes fit together.
Discuss an LMIA CaseLABOUR MARKET IMPACT ASSESSMENT
What Is an LMIA?
A Labour Market Impact Assessment, commonly called an LMIA, is an assessment conducted by Employment and Social Development Canada and Service Canada.
It is used in many cases where a Canadian employer wants to hire a temporary foreign worker.
The assessment considers whether hiring the foreign worker is expected to have a positive or neutral effect on Canada's labour market.
A positive LMIA generally confirms that there is a need for a temporary foreign worker and that qualified Canadians or permanent residents are not available to fill the position.
WHO APPLIES?
The Employer Applies for the LMIA
The LMIA application is generally submitted by the Canadian employer, not by the foreign worker.
The employer must demonstrate that the position and business meet the applicable Temporary Foreign Worker Program requirements.
If Service Canada issues a positive LMIA, the employer provides the required LMIA documents to the foreign worker.
The worker can then use those documents when applying for an employer-specific Canadian work permit.
Two Separate Processes
Step 1: Employer obtains the LMIA where required.
Step 2: Foreign worker applies for the appropriate work permit.
Learn About Work PermitsLMIA REQUIRED OR EXEMPT?
Not Every Foreign Worker Requires an LMIA
Employers should determine whether the position requires an LMIA before beginning the hiring process.
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LMIA-Required Position
Most employers hiring temporary foreign workers through the Temporary Foreign Worker Program need a positive LMIA before the worker applies for a work permit.
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LMIA-Exempt Position
Some workers qualify under an exemption, commonly through the International Mobility Program or another applicable exemption.
✓
Open Work Permit Holder
An employer generally does not need an LMIA simply to hire a person who already holds a valid open work permit.
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Confirm Before Applying
Using the wrong employer process can delay or prevent the foreign worker from obtaining the required work authorization.
HIGH-WAGE & LOW-WAGE STREAMS
Which LMIA Stream Applies?
For many positions, the wage offered by the employer determines whether the LMIA is processed under the high-wage or low-wage stream.
H
High-Wage Positions
If the wage offered is at or above the applicable provincial or territorial hourly wage threshold, the employer generally applies under the high-wage stream.
L
Low-Wage Positions
If the offered wage is below the applicable provincial or territorial threshold, the employer generally applies under the low-wage stream.
WAGE REQUIREMENTS
The Wage Must Meet More Than One Test
The provincial or territorial hourly threshold determines whether the application falls into the high-wage or low-wage stream.
However, that threshold does not by itself determine whether the wage being offered is acceptable.
Employers must also meet the applicable prevailing-wage requirements for the occupation, location and circumstances.
Wage thresholds are updated periodically, so they should be checked when preparing each LMIA application rather than hard-coded into an immigration strategy.
Thresholds Change
The wage used to classify a position as high-wage or low-wage is updated by the government. Always use the current threshold.
Review the PositionEMPLOYER ASSESSMENT
What Does Service Canada Review?
An LMIA application involves an assessment of both the employer and the position being offered.
02
Genuine Job Offer
The position must represent genuine employment with duties, wages and working conditions consistent with program requirements.
03
Recruitment Efforts
Employers may need to demonstrate appropriate efforts to recruit qualified Canadians and permanent residents before turning to a temporary foreign worker.
04
Wage
The offered wage must meet the applicable wage and prevailing-wage requirements.
05
Working Conditions
Employment conditions must generally be consistent with Canadian employment standards and Temporary Foreign Worker Program requirements.
06
Labour Market Impact
Service Canada assesses the expected effect of hiring the foreign worker on Canada's labour market.
RECRUITMENT
Employers May Need to Recruit Canadians First
Recruitment is an important part of many LMIA applications.
Depending on the stream, an employer may need to advertise the position and demonstrate reasonable efforts to recruit or train Canadian citizens and permanent residents.
Recruitment requirements may address where the job is advertised, how long the advertisements must run and the information included in them.
Because the requirements vary by stream, employers should establish the correct recruitment strategy before beginning the advertising period.
Recruit Before Applying
In many LMIA streams, recruitment must be completed according to specific requirements before the employer submits the application.
Plan the LMIA ProcessLMIA DECISION
Positive and Negative LMIA Decisions
Submitting an LMIA application does not guarantee that Service Canada will approve the employer's request.
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Positive LMIA
A positive LMIA indicates that hiring the temporary foreign worker is expected to have a positive or neutral labour market impact and that the employer may proceed with the next immigration steps.
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Negative LMIA
A negative decision means the employer has not received the labour market approval needed to use that LMIA in support of the proposed employment.
IMPORTANT DISTINCTION
A Positive LMIA Is Not a Work Permit
Receiving a positive LMIA does not by itself authorize a foreign worker to begin working in Canada.
The foreign national generally still needs to apply for and obtain the appropriate work authorization unless another legal basis already allows them to work.
Immigration, Refugees and Citizenship Canada assesses the worker's work permit application separately from Service Canada's LMIA assessment.
LMIA ≠ Work Permit
The LMIA is the employer-side labour market assessment. The work permit is the worker's immigration authorization.
Work Permit InformationLMIA STREAMS
Different Positions May Use Different LMIA Streams
The Temporary Foreign Worker Program contains multiple streams with different requirements.
01
High-Wage Positions
Positions at or above the applicable provincial or territorial wage threshold generally use the high-wage stream.
02
Low-Wage Positions
Positions below the applicable wage threshold generally use the low-wage stream and may be subject to additional restrictions.
03
Agricultural Workers
Specific agricultural positions may be processed under dedicated agricultural or seasonal worker streams.
04
Global Talent
Certain highly skilled positions and qualifying employers may be eligible for specialized Temporary Foreign Worker Program processing.
05
Permanent Residence Support
Certain LMIA applications may be connected with an employer's effort to support a skilled worker's permanent residence pathway.
06
Other Specialized Streams
Additional requirements may apply to caregivers, academics and other types of employment depending on the circumstances.
APPLICATION PROCESS
A Typical LMIA Process
Exact requirements vary by stream and position, but the process generally involves several employer-side steps before a worker applies for a work permit.
1
Confirm LMIA Requirement
Determine whether the proposed employment needs an LMIA or qualifies for an exemption.
2
Identify the Correct Stream
Review the wage, occupation and employment circumstances to determine which LMIA program stream applies.
3
Complete Recruitment
Carry out the required recruitment and advertising activities where applicable.
4
Submit LMIA Application
The employer submits the required employer, position, recruitment and supporting documentation to Service Canada.
5
Worker Applies for Permit
After a positive LMIA, the foreign worker uses the applicable documents to apply for the required work permit.
IMPORTANT INFORMATION
LMIA Requirements Change With the Position and Program Stream
An LMIA is not a single standardized application that works the same way for every employer.
Wage levels, occupation, work location, recruitment, business circumstances and the selected Temporary Foreign Worker Program stream can all affect the application requirements.
Government thresholds, caps and temporary program measures may also change over time.
Employers should therefore confirm the current requirements before advertising the position or submitting an LMIA application.
Employer Considering an LMIA?
AddPlus Immigration Solutions Inc. can review the proposed position, wage, employer circumstances and foreign worker situation to help identify the appropriate process.
Contact UsHIRING A FOREIGN WORKER?
Start With the Right Employer Process
Tell us about the position, offered wage, Canadian employer and proposed foreign worker, and let our team help you understand whether an LMIA is required and what steps may apply.
Request Assistance