FOR EMPLOYERS

Labour Market Impact Assessment (LMIA)

Canadian employers who cannot find qualified Canadians or permanent residents for a position may be able to hire a temporary foreign worker through the Labour Market Impact Assessment process.

Assess Your LMIA Eligibility

Hiring a Temporary Foreign Worker in Canada

A Labour Market Impact Assessment, commonly known as an LMIA, is an assessment completed by Employment and Social Development Canada and Service Canada.

In many situations, a Canadian employer must obtain a positive LMIA before a foreign worker can apply for an employer-specific work permit.

The LMIA process examines the proposed employment, wage, recruitment efforts, working conditions and the potential impact of hiring a temporary foreign worker on Canada's labour market.

Employers must meet detailed program requirements and demonstrate that the position and recruitment efforts comply with the applicable Temporary Foreign Worker Program stream.

What Does the Government Assess?

The LMIA process helps determine whether hiring a foreign worker is justified under Canada's temporary foreign worker rules.

01

Genuine Labour Need

The employer must demonstrate a genuine need to fill the position and meet applicable program requirements.

02

Recruitment Efforts

Employers generally must recruit Canadians and permanent residents before seeking to hire a foreign worker.

03

Wage

The offered wage must meet the applicable wage requirements for the occupation and LMIA stream.

04

Working Conditions

Employment conditions must meet applicable federal, provincial and territorial employment standards.

05

Employer Compliance

The employer must meet Temporary Foreign Worker Program requirements and comply with applicable immigration and employment rules.

06

Labour Market Impact

Service Canada assesses whether hiring the foreign worker is likely to have a positive or neutral impact on the Canadian labour market.

An LMIA Is Not the Foreign Worker's Work Permit

The LMIA application is made by the Canadian employer to Employment and Social Development Canada and Service Canada.

If the employer receives a positive LMIA, the employer can provide the foreign worker with the required documents to support an employer-specific work permit application.

The worker then applies separately to Immigration, Refugees and Citizenship Canada for permission to work in Canada.

Employer First, Worker Second

In an LMIA-required case, the employer generally completes the LMIA process first. The foreign worker then uses the positive LMIA to support their work permit application.

Discuss Your Hiring Plan

Choosing the Correct LMIA Stream

The correct application stream depends on factors such as the wage, occupation, industry, location and purpose of the hire.

01

High-Wage Positions

Positions offered at or above the applicable provincial or territorial wage threshold are generally processed under the high-wage stream.

02

Low-Wage Positions

Positions offered below the applicable wage threshold are generally processed under the low-wage stream and are subject to additional program restrictions.

03

Global Talent Stream

Certain highly skilled occupations and qualifying employers may be eligible for the Global Talent Stream.

04

Agricultural Workers

Employers hiring workers in primary agriculture may use specialized agricultural LMIA streams.

05

In-Home Caregivers

Certain caregiver positions may be processed under specific Temporary Foreign Worker Program requirements.

06

Permanent Residence Support

Employers may also use certain LMIA processes to support skilled workers in connection with permanent residence.

The Wage Threshold Helps Determine the Stream

Employers must compare the wage offered for the position with the current provincial or territorial hourly wage threshold published by ESDC. These thresholds are updated periodically and should be confirmed before the LMIA is submitted.

Positions at or above the threshold are generally processed through the high-wage stream.

Positions below the threshold generally fall under the low-wage stream and may face additional restrictions relating to the proportion of temporary foreign workers at the work location and other program requirements.

Wage Determines More Than Salary

The wage can affect the LMIA stream, recruitment requirements and employer obligations.

Identify My LMIA Stream

Employers Generally Must Recruit in Canada First

Recruitment is one of the central parts of many LMIA applications.

01

Recruit Canadians and Permanent Residents

Employers generally must make genuine efforts to recruit qualified Canadian citizens and permanent residents.

02

Job Bank

Job Bank advertising is commonly required, subject to the rules of the applicable LMIA stream.

03

Additional Recruitment Methods

Employers may also need to advertise through additional recruitment methods that are appropriate for the occupation.

04

Advertising Period

Recruitment must generally be conducted for the required period and at the appropriate time before the LMIA application is submitted.

05

Recruitment Records

Employers should retain evidence of advertisements, applicants and recruitment results.

06

Explain Recruitment Results

The employer may need to explain why Canadian or permanent resident applicants were not hired.

The Offered Wage Must Meet Program Requirements

The wage offered to the temporary foreign worker must comply with the requirements of the applicable LMIA stream.

Employers should review the prevailing wage for the occupation and region and ensure that the employment offer is consistent with Temporary Foreign Worker Program requirements.

Offering a lower wage to a foreign worker simply because they require a work permit is not acceptable.

Wage Errors Can Affect the Entire Application

The occupation, wage and location should be reviewed together before recruitment begins.

Review My Proposed Wage

High-Wage Positions

Employers hiring temporary foreign workers in high-wage positions must meet the requirements of the high-wage stream.

01

Wage Threshold

The offered wage must fall within the high-wage classification based on the current provincial or territorial threshold.

02

Recruitment

Employers must meet the applicable high-wage recruitment and advertising requirements.

03

Transition Plan

In many high-wage applications, employers must prepare a transition plan describing steps to reduce reliance on temporary foreign workers.

04

Employer Compliance

Employers must continue to meet their obligations after the foreign worker begins employment.

05

Employment Duration

Employers submitting a high-wage LMIA may generally request an employment duration of up to three years, subject to the employer's reasonable employment needs and program requirements.

Low-Wage Positions

Low-wage LMIA applications are subject to additional restrictions intended to limit reliance on temporary foreign workers.

01

Full-Time Employment

Low-wage positions under the program must generally be full-time, meaning at least 30 hours of work per week.

02

Low-Wage Cap

The proportion of temporary foreign workers in low-wage positions is generally capped at 10% of the workforce at a work location. Certain designated sectors may qualify for a higher 20% cap.

03

CMA Unemployment Restriction

Many low-wage LMIA applications for positions located in a census metropolitan area with an unemployment rate of 6% or higher will not be processed, subject to specific exemptions. The applicable unemployment rates are updated regularly.

04

Additional Employer Costs

Depending on the situation, employers may have additional obligations related to transportation, housing, insurance or worker protections.

05

Maximum Duration

For most low-wage positions, the requested employment duration is generally limited to a maximum of one year, subject to stream-specific exceptions.

Temporary rural low-wage measures are in effect from April 1, 2026 to March 31, 2027 in certain participating provinces and territories. Ontario is not currently participating in these rural measures, so Ontario employers should not assume that the temporary rural cap relief applies.

Hiring Specialized and Highly Skilled Talent

The Global Talent Stream is a specialized LMIA pathway designed for certain Canadian employers seeking highly skilled workers.

Category A may be available to qualifying employers referred by a designated referral partner for unique and specialized talent.

Category B may apply where the employer is hiring for an occupation appearing on the current Global Talent Occupations List.

Hiring Highly Skilled Talent?

If the occupation is highly specialized or appears on the Global Talent Occupations List, the Global Talent Stream may be worth reviewing.

Check Global Talent Eligibility

The LMIA Processing Fee Is Generally $1,000 Per Position

For most LMIA applications that support temporary work authorization, the employer must pay a government processing fee of $1,000 for each position requested.

For example, an LMIA application requesting two foreign worker positions would generally involve a $2,000 LMIA processing fee.

Certain agricultural positions and other specific circumstances may qualify for a fee exemption.

The Worker Cannot Pay the LMIA Fee

The employer cannot charge or recover the LMIA processing fee from the temporary foreign worker.

Review My LMIA Costs

Employers Must Protect Workers From Improper Recruitment Fees

Employers must ensure that temporary foreign workers are not charged or required to repay prohibited recruitment fees.

This obligation can extend to recruiters and other third parties acting on the employer's behalf.

Employers should carefully review recruitment arrangements and third-party practices before submitting an LMIA application.

Employer Responsibility Extends Beyond the Application

Using a recruiter does not remove the employer's responsibility to comply with Temporary Foreign Worker Program rules.

Review My Recruitment Process

The Employer Must Be Able to Support the Job Offer

Service Canada may review the employer's business and ability to meet the terms of the employment offer.

01

Legitimate Business

The employer must generally operate a legitimate business providing goods or services in Canada.

02

Genuine Job

The position must represent a genuine employment need within the business.

03

Ability to Pay

The employer may need to demonstrate the ability to meet the wage and employment commitments made in the LMIA application.

04

Compliance History

Previous compliance issues or violations may affect an employer's ability to participate in the Temporary Foreign Worker Program.

Choosing the Correct NOC Code Is Important

The position must be classified under Canada's National Occupational Classification system.

The correct NOC should reflect the actual main duties and responsibilities of the position rather than simply the job title.

The NOC classification can affect wages, recruitment requirements, work permit eligibility and other parts of the immigration process.

Job Title Alone Is Not Enough

Two positions with similar titles can fall under different NOC codes depending on their actual duties.

Review My NOC

High-Wage Employers May Need a Transition Plan

A transition plan may be required for certain high-wage LMIA applications.

The plan describes actions the employer will take to recruit, retain or train Canadians and permanent residents or otherwise reduce reliance on temporary foreign workers.

When an employer submits future LMIA applications, Service Canada may review whether commitments made in an earlier transition plan were followed.

Transition Plans Create Future Commitments

Employers should propose realistic actions and maintain documentation showing that those commitments were implemented.

Prepare My Transition Plan

Employer Responsibilities Continue After Approval

Receiving a positive LMIA does not end the employer's responsibilities.

01

Pay the Required Wage

The worker should receive wages consistent with the terms approved through the LMIA process.

02

Provide the Agreed Job

The employer should provide employment that is substantially consistent with the approved occupation and working conditions.

03

Respect Employment Laws

Employers must comply with applicable federal, provincial and territorial employment standards.

04

Keep Records

Employers should maintain employment and compliance records as required under the program.

05

Cooperate With Inspections

Employers may be inspected to verify compliance with Temporary Foreign Worker Program requirements.

06

Protect Workers

Employers must provide a workplace free from abuse and comply with worker-protection requirements.

Non-Compliance Can Have Serious Consequences

Employers participating in the Temporary Foreign Worker Program may be subject to inspections and compliance reviews.

Employers found non-compliant may face consequences such as warnings, monetary penalties, bans from hiring temporary foreign workers or publication of non-compliance information.

Employers should therefore view LMIA compliance as an ongoing responsibility, not simply an application requirement.

Compliance Starts Before Submission

Recruitment, job duties, wages and business records should be accurate from the beginning of the LMIA process.

Review Employer Compliance

LMIA Applications Can Also Be Connected to Permanent Residence

Certain employers may apply for an LMIA to support a skilled worker in connection with their permanent residence plans.

If the LMIA is being requested only to support the foreign worker's permanent residence application, the employer is generally exempt from the LMIA processing fee. If the employer is requesting a dual-intent LMIA to support both permanent residence and a temporary work permit, the usual LMIA processing fee applies.

The requirements depend on the worker's occupation, immigration pathway and whether temporary work authorization is also being requested.

An LMIA used in connection with permanent residence should be planned together with the worker's broader immigration strategy.

Supporting an Employee's PR?

We can review whether an LMIA or another employer-supported immigration pathway fits the employee's permanent residence strategy.

Review PR Support Options

Not Every Foreign Worker Requires an LMIA

Before beginning an LMIA application, employers should confirm whether the foreign worker may qualify under an LMIA-exempt work permit category.

Canada's International Mobility Program contains several LMIA-exempt work permit categories based on international agreements, significant benefit, intra-company transfers and other circumstances.

If a valid LMIA exemption exists, an employer may be able to hire the worker without completing the Temporary Foreign Worker Program LMIA process.

Check for an Exemption First

An LMIA is a detailed employer process. Before starting, confirm whether a simpler LMIA-exempt work permit pathway is available.

Check LMIA Exemptions

Common Documents in an LMIA Application

The exact documentation depends on the business and LMIA stream.

01

Business Documents

Documents may be required to establish that the business is legitimate and actively operating in Canada.

02

Recruitment Records

Employers should retain advertisements, recruitment results and information about Canadian applicants.

03

Job Description

The duties, responsibilities, NOC classification and employment conditions should be clearly documented.

04

Wage Information

Employers should provide accurate wage information consistent with program requirements.

05

Employment Offer

The proposed employment terms should be clearly documented for the foreign worker.

06

Stream-Specific Documents

Transition plans, housing documents, recruitment information or other stream-specific records may also be required.

How the LMIA Process Works

A strong LMIA application begins before the application form is submitted.

1

Assess the Position

Review the occupation, NOC, wage, location and business need.

2

Identify the LMIA Stream

Determine whether the position falls under high-wage, low-wage, Global Talent or another specialized stream.

3

Complete Recruitment

Conduct the required recruitment and advertising for Canadians and permanent residents.

4

Prepare the LMIA Application

Compile business, recruitment, employment and stream-specific documentation.

5

Submit to Service Canada

Submit the application and pay the applicable LMIA processing fee.

6

Complete Employer Review

Service Canada may contact the employer to review the application and request additional information.

7

Receive the LMIA Decision

If the application is approved, the employer receives a positive LMIA decision.

8

Worker Applies for Work Permit

The employer provides the required documents to the foreign worker so they can proceed with the work permit application.

Common Problems Employers Should Avoid

LMIA applications are highly document-driven and inconsistencies can affect the outcome.

!

Incorrect NOC

The selected occupation does not accurately reflect the actual job duties.

!

Incorrect Wage

The employer uses a wage that does not meet the requirements for the occupation or LMIA stream.

!

Recruitment Errors

Advertisements do not meet the required content, timing or recruitment-method requirements.

!

Weak Business Need

The application does not clearly demonstrate why the position genuinely exists within the business.

!

Inconsistent Documents

The job posting, LMIA application, employment agreement and supporting documents contain different information.

!

Improper Worker Fees

LMIA or prohibited recruitment costs are charged back to the temporary foreign worker.

Employer-Focused LMIA Support

AddPlus Immigration Solutions Inc. can help employers assess the proposed position, identify the correct LMIA stream and prepare the application.

01

Employer Eligibility Review

We review the business and proposed position before the employer begins the LMIA process.

02

NOC and Wage Analysis

We help identify the appropriate occupation classification and review applicable wage requirements.

03

Recruitment Planning

We help employers plan recruitment and advertising in accordance with the applicable LMIA stream.

04

Application Preparation

We assist with organizing the business, recruitment and employment documents required for the LMIA application.

05

Service Canada Follow-Up

We assist with responding to requests and questions that arise during LMIA processing.

06

Worker Work Permit

After a positive LMIA, we can also assist the foreign worker with the related employer-specific work permit application.

LMIA Rules Can Change With Labour Market Conditions

Temporary Foreign Worker Program requirements are regularly updated in response to labour market conditions and government policy.

Wage thresholds, low-wage restrictions, occupation lists and other eligibility requirements may change over time.

Employers should therefore confirm the current rules before starting recruitment or submitting an LMIA application.

Planning to Hire a Foreign Worker?

Tell us about your business, position, location, wage and hiring needs. We can help identify whether an LMIA may be appropriate and what steps are required.

Request an Employer Assessment

Build Your Workforce With the Right Immigration Strategy

Whether you are hiring one specialized worker or planning for longer-term workforce needs, our team can help you assess the LMIA process, prepare the required documentation and move from recruitment to work permit.

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