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Canadian LMIA Based Work Permit

A Canadian LMIA based work permit allows Canadian employers to hire foreign workers when no qualified Canadian citizens or permanent residents are available for the job. Before a foreign national can apply for this work permit, the employer must obtain a positive Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC).

This comprehensive guide outlines how the Canadian LMIA based work permit system works in 2025, including employer responsibilities, stream classifications, exemptions, and detailed application procedures.

What Is an LMIA-Based Work Permit?

A Labour Market Impact Assessment (LMIA) is a document that Canadian employers must obtain before hiring most foreign workers. The LMIA confirms that hiring a foreign national will not negatively impact the Canadian labour market. It also proves that no Canadian worker is available to do the job and that the job offer meets all employment standards.

After a positive LMIA is issued, the foreign worker can use it to apply for a work permit through Immigration, Refugees and Citizenship Canada (IRCC).

High-Wage vs. Low-Wage LMIA Streams

LMIA applications are classified into two main categories based on the wage being offered. The dividing line is the median hourly wage in the province or territory where the job is located.

High-Wage Stream

Positions that pay at or above the local median wage are considered high-wage. Employers applying under this stream must include a transition plan. This plan outlines how they will reduce their future reliance on temporary foreign workers. Common strategies include training Canadian workers or supporting foreign workers in applying for permanent residency.

Employers must update and report progress on their transition plan if their LMIA is inspected or renewed.

Low-Wage Stream

Jobs that offer wages below the median fall under the low-wage category. Although a transition plan is not required, employers must meet other conditions. These include:

  • Paying for the worker’s transportation to and from Canada
  • Ensuring affordable housing is available
  • Providing private health insurance until public coverage begins
  • Registering the worker with a provincial workplace safety board
  • Signing a written employment contract

Employers with 10 or more employees are generally limited to having no more than 10% of their workforce in low-wage LMIA positions.

 

LMIA Application Process for Employers

Step 1: Choose the Correct Stream

The first step is determining which LMIA stream applies to the job — high-wage, low-wage, or one of the specialized streams such as the Global Talent Stream, In-Home Caregiver Program, or Seasonal Agricultural Worker Program.

Each stream has its own set of requirements. High-wage streams require a transition plan, while low-wage streams impose strict employment conditions and workforce caps.

Step 2: Advertise the Job in Canada

Employers must prove that they made a genuine effort to hire Canadians before offering the job to a foreign worker. This involves:

  • Advertising the position on the Government of Canada’s Job Bank
  • Using at least two additional recruitment methods, such as online job boards or industry publications
  • Running the job ads for a minimum of four consecutive weeks
  • Targeting underrepresented groups, such as Indigenous persons or people with disabilities

Employers must keep detailed records of all recruitment efforts, including copies of job postings, dates advertised, number of applicants, and reasons for rejection.

Step 3: Gather Supporting Documentation

The following documents must be submitted with the LMIA application:

  • Business registration and financial documents
  • A detailed job offer, including duties, wage, and benefits
  • A signed employer-employee contract
  • A transition plan (for high-wage jobs only)
  • Proof of job advertisement and recruitment summary

The documentation helps ESDC determine whether hiring a foreign worker is justified and that the employer is capable of fulfilling employment obligations.

Step 4: Submit the Application and Fee

The LMIA application must be submitted to ESDC either online or by mail. A processing fee of CAD $1,000 per position is required. Only a few exceptions, such as caregivers hired for medical needs, are exempt from the fee.

After submission, ESDC may contact the employer for clarification or additional information. In some cases, employers may be selected for an inspection or compliance review.

Canadian LMIA Based Work Permit Application Process

Step 1: Receive a Positive LMIA

The foreign worker must first obtain a copy of the positive LMIA from the Canadian employer. This document is essential for applying for a work permit.

Step 2: Apply for a Work Permit

With the LMIA in hand, the foreign worker can submit a work permit application to IRCC. The application can be submitted online or at a visa application centre, depending on the worker’s country of residence.

The application must include:

  • A copy of the positive LMIA
  • A copy of the job offer or employment contract
  • Proof of qualifications and work experience
  • Valid travel documents (such as a passport)
  • Medical exam results (if required)
  • Police clearance (if requested)

In most cases, the worker must also show that they will leave Canada once the permit expires, although they may later apply for an extension or permanent residence.

Step 3: Wait for IRCC Decision

IRCC will assess the application based on the job offer, the LMIA, and the applicant’s background. If approved, the foreign national will receive a work permit that includes details such as employer name, job location, and duration of employment.

A work permit issued through the LMIA process is generally employer-specific, meaning the worker may not change employers without first obtaining a new LMIA and work permit.

Employer Compliance and Inspection

Employers who hire foreign workers through the LMIA process are subject to inspections at any time. Government officials may verify that the employer:

  • Is paying the correct wage
  • Has provided the promised working conditions
  • Is complying with employment laws and regulations

Employers found non-compliant may face penalties, fines, or a ban on future LMIA applications. In serious cases, previously approved LMIAs may be revoked.

LMIA Exemptions

Not all foreign workers require an LMIA. In certain cases, workers can be hired under the International Mobility Program (IMP). This program allows LMIA exemptions for jobs that support Canada’s broader economic or cultural interests.

Common LMIA Exemptions:

  • Professionals under CUSMA (formerly NAFTA)
  • Participants in the International Experience Canada (IEC) program
  • Intra-company transferees
  • Open work permit holders such as Bridging Open Work Permit (BOWP) applicants
  • Workers under CETA and other international trade agreements

Employers hiring under the IMP must still submit an offer of employment through IRCC’s employer portal and pay a compliance fee but are not required to go through the LMIA process.

Recognized Employer Pilot (REP)

As of 2025, the Recognized Employer Pilot (REP) continues to benefit employers who have a strong history of compliance with the Temporary Foreign Worker Program (TFWP). Eligible employers enjoy:

  • Simplified LMIA application procedures
  • Longer LMIA validity periods
  • Priority processing for applications

This initiative helps reduce administrative delays and supports Canadian businesses with proven track records.

This updated guide to LMIA-based work permits is designed to help both employers and foreign workers understand their roles and obligations under Canadian immigration law. By following the correct steps, both parties can ensure a smooth and legal hiring process that contributes to Canada’s labour market and economic goals.

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