LMIA and Canadian Work Permit – Equera

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Labor Market Impact Assessment (LMIA) and Canadian Work Permit

A Guide for Jobs requiring a positive LMIA (Labour Market Impact Assessment) before applying for a Work Permit is as follows:

In most situations, employers must first obtain a Labour Market Impact Assessment (LMIA) before hiring foreign workers (with some exceptions, such as under NAFTA and GATS). To receive a positive LMIA, a Canadian employer must demonstrate that there are no Canadian citizens or permanent residents available for the job, thereby necessitating the employment of a foreign worker.

The LMIA application must include the following:

  • Evidence of efforts to recruit Canadian citizens or permanent residents for the position
  • Wages offered for the role must align with the prevailing wage rate for Canadians or permanent residents in the same occupation within the region
  • Working conditions for the position must meet current provincial labour market standards
  • A demonstration of how hiring a foreign worker could benefit the Canadian labour market, such as job creation or knowledge and skill transfer
  • For high-wage positions, employers must provide a transition plan outlining efforts to hire Canadians for the role in the long term

Once the LMIA is approved, the employer provides the foreign worker with the LMIA, which is submitted with their work permit application. If granted, the work permit is typically issued for one year.

Employment and Social Development Canada (ESDC) manages the LMIA process, which involves an application fee of $1,000 per position for each temporary foreign worker request.

For certain positions, such as those in high-demand, high-paying, or short-duration roles, there is an expedited processing time of 10 days. These positions typically include skilled trades in the top 10% of pay brackets or jobs lasting less than 120 days.

The LMIA process varies based on whether the foreign worker is considered “high-wage” or “low-wage.” Workers earning below the provincial or territorial median wage are classified as low-wage, while those earning at or above the median wage are considered high-wage. Depending on the classification of the worker, specific requirements and provisions apply.

High-Wage Workers

Employers looking to hire high-wage workers must submit a transition plan along with their Labour Market Impact Assessment (LMIA) application. This plan ensures that the employer is actively working to reduce dependence on temporary foreign workers over time. High-wage workers are defined as those earning above the median hourly wage for a specific occupation in a given region.

Transition plans are designed to ensure employers are using the program appropriately, as a temporary solution to fill immediate labour gaps when qualified Canadian workers are unavailable. The goal is to prioritize Canadian workers and give them first access to available job opportunities.

In Quebec, certain occupations are considered “facilitated,” meaning employers do not need to conduct local recruitment efforts for these roles when applying to hire temporary foreign workers.

Low-Wage Workers

Employers hiring low-wage workers are not required to submit a transition plan with their LMIA application. However, they must adhere to a different set of guidelines.

To manage access to the Temporary Foreign Worker Program (TFWP) and prioritize Canadian workers for available positions, the Government of Canada has implemented a cap on the number of low-wage workers an employer can hire. This cap limits employers with 10 or more employees to hiring no more than 10% of their workforce as low-wage temporary foreign workers. The cap was phased in during 2015 and 2016 to give employers time to adjust if they exceeded the limit.

For employers offering wages below the provincial/territorial median hourly wage, additional requirements include:

  • Paying for the temporary foreign worker’s round-trip transportation
  • Ensuring affordable housing is available
  • Providing private health insurance until the worker qualifies for provincial health coverage
  • Registering the worker with the provincial/territorial workplace safety board
  • Offering a written employer-employee contract

As of April 30, 2015, the Temporary Foreign Worker Program uses the latest Labour Force Survey data to determine unemployment rates in various regions across Canada. These rates are used to decide whether LMIA applications for low-wage or lower-skilled occupations in sectors like Accommodation and Food Services or Retail Trade will be processed. LMIA applications for these sectors will not be accepted in regions with an unemployment rate of 6% or higher.

Due to unique labour market conditions and at the request of the Government of the Northwest Territories, LMIA applications for low-wage positions in Yellowknife, particularly in these sectors, will still be accepted.

Expediting an LMIA work permit:

Labour Market Impact Assessments (LMIAs) for certain workers will be processed within a 10-business-day service standard. This expedited processing applies to workers in the following occupational categories:

  • Highest-demand occupations
  • Highest-paid occupations
  • Shortest-duration occupations

Highest-Demand Occupations

The 10-day service standard for this category specifically applies to skilled trades positions where the wage offered meets or exceeds the provincial/territorial median wage. These positions are critical to the development of major infrastructure and natural resource extraction projects, making them essential to Canada’s economic growth.

Highest-Paid Occupations

The 10-day service standard for this category applies to employers hiring temporary foreign workers in the highest-paid occupations, where the wages are in the top 10% of earnings for Canadians in the specific province or territory. This wage level indicates that the worker possesses high-level skills that are in short supply in the Canadian labour market.

Shortest-Duration Occupations

The 10-day service standard for this category applies to employers seeking temporary foreign workers for short-duration positions, defined as lasting 120 calendar days or less, in any occupation offering wages at or above the provincial or territorial median wage. These positions typically include jobs related to equipment repair or manufacturing maintenance.

After receiving a positive LMIA, the employer must provide a copy to the foreign worker. This positive LMIA is required when the worker applies for a Temporary Work Permit.

A single LMIA can be issued for one or more employees. If multiple employees are involved, the LMIA will only apply to those filling identical positions, as defined by the Canadian National Occupation Classification (NOC).

There are cases where an employer may be exempt from the LMIA requirement. For more details, please visit the LMIA Exempt Work Permit page.

Advertising Regulations

Employers are required to advertise all job openings across the Canadian job market for a minimum of four weeks before submitting a Labour Market Impact Assessment (LMIA) application. As part of this process, employers must demonstrate that they have used at least two additional recruitment methods besides posting an advertisement on the Canada Job Bank. Efforts should be made to target under-represented groups, such as First Nations individuals or persons with disabilities.

Employers seeking to hire a temporary foreign worker must pay a processing fee of CAD $1,000 for each LMIA application.

Job advertisements and LMIA applications can only list English and French as language requirements, unless the employer can prove that another language is essential for the position.




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