Finding the right person for the job doesn’t always mean finding a Canadian citizen or permanent resident. When the talent you need isn’t available in the local labour market, a Labour Market Impact Assessment — commonly known as an LMIA — is the document that makes it possible to hire a foreign worker legally. The process is detailed and the standards are high, but with the right preparation it is entirely achievable. We guide Canadian employers through every step so you can focus on building your team.
What is an LMIA?
A Labour Market Impact Assessment is a document issued by Employment and Social Development Canada (ESDC) — through its service delivery arm Service Canada — that confirms hiring a foreign worker for a specific position will not have a negative impact on the Canadian labour market. In practical terms it means demonstrating that:
- You made genuine efforts to find a qualified Canadian citizen or permanent resident for the position
- No suitable Canadian candidate was available
- The foreign worker will be paid at the prevailing wage for the occupation and region
- Working conditions meet Canadian standards
A positive LMIA is required in many cases before a foreign worker can apply for an employer-specific work permit to work for you.
Who needs an LMIA?
Most Canadian employers who want to hire a foreign worker need an LMIA. However, there are significant exemptions — many workers qualify for LMIA-exempt work permits under international trade agreements, intra-company transfer provisions, or other exemptions. We assess your specific situation at the outset to determine whether an LMIA is required or whether a faster, simpler exemption applies.
What are the main LMIA streams?
High-wage positions For positions where the offered wage is at or above the median hourly wage for the province or territory. Requires a transition plan demonstrating efforts to reduce reliance on temporary foreign workers over time.
Low-wage positions For positions where the offered wage is below the median hourly wage. Subject to additional requirements including caps on the proportion of temporary foreign workers at a worksite in certain sectors.
Global Talent Stream A faster LMIA stream for employers hiring highly skilled foreign workers in specific in-demand occupations, particularly in technology. Designed to process applications within two weeks for eligible positions.
Agricultural Stream For employers in the agricultural sector hiring foreign workers for seasonal or year-round positions.
Caregivers For employers hiring foreign nationals to provide care for children or people with high medical needs in a private home.
What does the recruitment process require?
Before applying for an LMIA, employers must demonstrate that they made genuine efforts to hire Canadians first. This typically means:
- Advertising the position on the Government of Canada’s Job Bank
- Placing additional advertisements through at least two other recruitment channels
- Keeping detailed records of all applications received and interviews conducted
- Documenting why Canadian applicants were not hired
The recruitment period, advertising requirements, and documentation standards are specific and must be followed carefully. Gaps in your recruitment record are one of the most common reasons LMIA applications are refused or returned.
How does the process work?
Step 1 — Determine whether an LMIA is required The first step is confirming whether the position requires an LMIA or qualifies for an exemption under an international trade agreement, intra-company transfer provision, or other category. If an exemption applies the process is significantly simpler and faster.
Step 2 — Conduct recruitment Before applying for an LMIA, employers must demonstrate genuine efforts to hire a Canadian citizen or permanent resident for the position. This requires advertising the job on the Government of Canada’s Job Bank and through at least two additional recruitment channels, keeping detailed records of all applications received, interviews conducted, and reasons why Canadian applicants were not hired.
Step 3 — Gather required documents The employer gathers supporting documents for the application including business registration documents, proof of recruitment efforts, the job offer letter, wage information, and any other documents required for the specific LMIA stream.
Step 4 — Submit the LMIA application The employer submits the complete LMIA application to Service Canada — and to MIFI if the position is in Québec — along with the required processing fee of $1,000 per position for most streams.
Step 5 — Processing and decision Service Canada reviews the application and may request additional information or schedule an interview with the employer. If approved a positive LMIA is issued, typically valid for 18 months, during which the foreign worker can apply for their work permit.
Step 6 — Work permit application With the positive LMIA in hand the foreign worker submits their work permit application to IRCC. The LMIA supports the application by confirming that hiring this worker has been assessed as not negatively affecting the Canadian labour market.
Can a work permit lead to permanent residency?
Yes — and for many people this is the plan from the start. Canadian work experience is a significant asset in several permanent residency streams, including the Canadian Experience Class (CEC) under Express Entry. We can assess your eligibility for permanent residency pathways from day one so you have a long-term roadmap, not just a short-term solution.
How long does it take?
Processing times vary by stream. The Global Talent Stream aims for two weeks for eligible applications. Standard streams typically take several weeks to a few months depending on volume and the completeness of your application. We advise you on current processing times and make sure your application is as complete as possible to avoid unnecessary delays.
What are your obligations as an employer?
Receiving a positive LMIA comes with ongoing obligations. As an employer you must:
- Pay the foreign worker the wage stated in the LMIA
- Provide the working conditions described in the LMIA
- Keep records of compliance for a period of six years
- Cooperate with any inspections conducted by ESDC
Failure to meet these obligations can result in penalties, bans from the Temporary Foreign Worker Program, and publication of your business name on a public list of non-compliant employers. We make sure you understand your obligations before you commit to the process.
What can go wrong — and how we help
LMIA applications are refused for a variety of reasons:
- Insufficient or poorly documented recruitment efforts
- Wage offered below the prevailing rate for the occupation and region
- Business legitimacy concerns
- Incomplete documentation
- Position not clearly justified as genuinely needed
- Previous non-compliance issues
At TDL Immigration we review your recruitment process and documentation before submission. A well-prepared, complete LMIA application is significantly more likely to be approved — and approved faster — than one submitted with gaps or inconsistencies.
F.A.Q.
Here are some common questions about LMIA applications.
How much does an LMIA cost?
Service Canada charges a processing fee of $1,000 per position for most LMIA applications. Some streams — including the Agricultural Stream and certain caregiver positions — are exempt from this fee. This fee is paid by the employer and cannot be passed on to the foreign worker.
Can the foreign worker pay for the LMIA?
No — it is illegal under Canadian law for an employer to recover the LMIA fee or associated costs from the foreign worker. Employers bear these costs entirely.
How long is an LMIA valid?
A positive LMIA is generally valid for 18 months from the date of issue, during which time the foreign worker must apply for and receive their work permit.
Can I use one LMIA to hire multiple workers?
An LMIA is issued for a specific position and a specific foreign worker in most cases. If you need to hire multiple foreign workers you will generally need a separate LMIA for each position, though some agricultural and caregiver streams allow for multiple workers under one application.
What if my LMIA application is refused?
A refusal letter will explain the reasons for the decision. Depending on the circumstances you may be able to reapply addressing the specific concerns raised. We review refusal decisions carefully and advise you on the most realistic path forward.
Do I need an LMIA if the worker is already in Canada?
Not necessarily — if the worker already holds a valid work permit and is changing employers, different rules apply. If they qualify for an LMIA-exempt category, the process is simpler. We assess the specific situation before recommending a course of action.
What is the difference between the Temporary Foreign Worker Program and the International Mobility Program?
The Temporary Foreign Worker Program (TFWP) covers positions that require an LMIA. The International Mobility Program (IMP) covers LMIA-exempt work permits under international agreements and other exemptions. The IMP is generally faster and less administratively burdensome. We determine at the outset which program applies to your situation.
Looking to hire foreign talent?
Whether you're a small business struggling to fill a critical position or a growing company looking to bring in specialized skills from abroad — we help you navigate the process correctly from start to finish. Book a consultation with Rosa and we'll assess your situation and map out the most efficient path to getting the talent you need.