Labour Market Impact Assessment

LMIA allows Canadian employers to hire foreign workers when no qualified Canadian citizens or permanent residents are available. To get a positive and valid LMIA Application, employers must show Employment and Social Development Canada (ESDC) that they’ve made genuine efforts to hire locally. A positive LMIA can help most foreign workers to get a work permit in Canada. This process ensures that hiring foreign workers will not negatively impact the Canadian labor market and can also help foreign workers with their immigration journey. 

Type of Permit​ ​

The LMIA application process varies based on the type of worker being hired.

Application Eligibility

To apply for an LMIA, employers must be legally established in Canada

Required Documents

Provide documentation such as proof of job postings and interview records to show that the foreign worker is a better fit for the position!

Type of LMIA Permit​

Once a positive LMIA is received, foreign workers can apply for a closed work permit to start working with the Canadian employer.

This permit is specific to the employer and job offer, meaning the worker can only work for this employer. If job conditions change, the worker must report this to Immigration, Refugees and Citizenship Canada (IRCC) or apply for a new work permit with a new job offer.

The LMIA application process varies based on the type of worker being hired:

  • High-wage workers
  • Low-wage workers (closed)
  • Seasonal Agricultural Worker Program
  • Agricultural Stream

Eligibility for LMIA Employers

Application Eligibility​

To apply for an LMIA, employers must be legally established in Canada and provide documentation such as tax records, business licenses, and financial statements to prove their legitimacy. This verifies that the job offer is genuine, necessary and that the employer can hire additional staff.

Legitimate Business

The employer must be a legitimate and active Canadian business with the capacity to hire and pay foreign workers. The employer needs to demonstrate financial stability and an operational business in Canada.

Job Offer Must Be Genuine

The job offer to the foreign worker must be real and must match a legitimate need within the company. The position should align with the business's activities and not be created solely to facilitate immigration.

Recruitment Efforts

Employers must make genuine efforts to recruit and hire Canadian citizens or permanent residents first. This typically includes advertising the job locally in specified formats (e.g., job boards, newspapers, etc.) for a minimum period (usually four weeks) before applying for an LMIA.

Wages and Working Conditions

Employers must offer wages that meet or exceed the median wage in their province or territory for the job position. Working conditions must comply with federal and provincial labor laws, ensuring fair treatment of the foreign worker.

Employer Compliance History

Employers with a history of non-compliance with Canadian labor or immigration laws may not be eligible to apply for an LMIA. This includes cases of unpaid wages, unsafe working conditions, or misrepresentation of job offers.

No Negative Impact on the Canadian Labor Market

The employer must show that hiring a foreign worker will not negatively impact the Canadian labor market. This is assessed through recruitment efforts, wage comparisons, and the nature of the job.

Foreign workers must meet specific job-related criteria, including relevant education, work experience, and skills. Additionally, the job offer must meet the salary standards set by the province, city, or territory where the job is located.

Required Documents

Provide documentation such as proof of job postings and interview records to show that the foreign worker is a better fit for the position!

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Job Advertisements and Recruitment Proof

Employers must advertise the job for at least 4 consecutive weeks on three different platforms, including:

  • Job Bank (mandatory for Canadian job postings).
  • Two additional recruitment platforms (e.g., industry-specific websites, job boards, or local newspapers).
  • The job ad should remain active for at least 4 weeks before submitting the LMIA application.
  • One recruitment activity must remain active until the LMIA decision is made.
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Proof of Recruitment Efforts

Documentation showing genuine efforts to hire Canadian citizens or permanent residents. 

This includes:

  • Copies of job postings from all recruitment platforms.

  • Detailed recruitment records, such as the number of applicants, reasons for rejection, and proof of interviews conducted with Canadian candidates.

The employer must explain why the foreign worker is a better fit for the role than the local candidates.

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Transition Plan (for High-Wage LMIA)

For high-wage positions, employers must submit a transition plan outlining how they will reduce their reliance on temporary foreign workers over time. This plan may include steps to train Canadian employees or hire more local workers in the future.

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Proof of Business Legitimacy

Employers must prove that their business is active and financially capable of hiring and paying foreign workers. 

This can include:

  • Business registration documents.
  • Payroll records showing the company’s ability to pay the foreign worker’s wages.
  • Tax returns or other financial statements demonstrating the business’s stability.
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Employment Contract

A copy of the job offer or employment contract between the employer and the foreign worker must be provided.

The contract should include details such as:

  • Job duties.
  • Salary or hourly wage.
  • Working conditions and benefits.
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Wage Details

Employers must show that they are offering wages that meet or exceed the prevailing wage for the job in the region.

Documentation may include:

  • Wage surveys or government wage data.

  • Recent payroll records to demonstrate compliance with wage standards.

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Housing Proof (for Agricultural or Caregiver Workers)

If the LMIA is for agricultural or caregiver workers, employers must provide proof of suitable housing arrangements, including:

  • A housing inspection report from local authorities.
  • Details of the accommodation, such as rent costs, location, and amenities.
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Previous LMIA Records (if applicable)

If the employer has previously submitted an LMIA, they must provide proof of how they complied with the conditions of the previous LMIA (e.g., proof that they hired and paid the foreign worker as agreed).

LYC LMIA Application Procedure

If you're interested in applying for an LMIA, our experienced team can guide you through each step. Here’s how we handle your application:

Initial Consultation

Schedule a consultation with us to review your company's needs, the job position, and the foreign worker’s qualifications. This helps us tailor the application process to your unique situation.

Custom Application Strategy

Based on the consultation, we’ll advise on the best LMIA type for your business and help meet all requirements, including recruitment strategies and document preparation.

Recruitment Support

We assist with placing job ads on required platforms (like Job Bank) and documenting recruitment efforts to meet LMIA requirements.

Document Preparation & Submission

We prepare and submit all necessary documents, ensuring compliance with Employment and Social Development Canada (ESDC) guidelines.

Ongoing Updates

We keep you informed on the status of your application and handle any follow-up requests from the ESDC.

Post-Approval Assistance

After LMIA approval, we help the foreign worker apply for a work permit or guide them toward permanent residency.

Important Notes​

Notes for LMIA

  • Employers hiring temporary foreign workers (TFWs) in British Columbia, Manitoba, Saskatchewan, or Nova Scotia must first obtain an employer registration certificate from the provincial government. Include a copy of this certificate or proof of exemption with your LMIA application.

  • For positions in Quebec lasting more than 30 days, submit your LMIA application to both Service Canada and Quebec’s Ministère de l’Immigration, de la Francisation et de l’Intégration (MIFI) in French. Failure to do so will result in rejection with no refund of the processing fee. Follow MIFI’s format requirements and include the names of the TFWs in your application. For details on unnamed LMIA applications, refer to the guidelines.

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Questions About LMIA

Employers must advertise the job for at least 4 consecutive weeks on three different platforms, including Job Bank. At least one recruitment activity must remain active until a decision is made on the LMIA

A high-wage LMIA application is for positions offering wages above the provincial median wage and requires a transition plan. A low-wage LMIA application applies to jobs paying below the median wage and faces caps on the number of foreign workers.

The processing time for an LMIA application depends on the type of LMIA being applied for. High-wage and low-wage applications generally take longer, while Global Talent Stream and agricultural LMIA applications can be processed faster due to urgent labor needs.

Yes, you can apply for another LMIA, but you will need to provide proof of compliance with previous LMIA conditions. This includes showing that you hired and paid the foreign workers as agreed in the earlier LMIA Program applications.

Once you receive a positive LMIA, the foreign worker can apply for a work permit. In some cases, a positive LMIA application can also support their permanent residency application through programs like Express Entry.

If your LMIA application is rejected, you will receive a letter explaining the reasons for the refusal. Common reasons include insufficient recruitment efforts, inadequate wage offers, or failure to prove that hiring a foreign worker won’t negatively impact the Canadian labor market. You can reapply after addressing the issues.

The cost of submitting an LMIA application is $1,000 per position, although certain sectors, such as agricultural LMIA applications under the Seasonal Agricultural Worker Program (SAWP), may have different fee structures.

A transition plan is only required for high-wage LMIA applications. This plan outlines how you intend to reduce reliance on foreign workers by hiring or training Canadians in the future. Low-wage and certain other LMIA streams, such as the agricultural stream, do not require a transition plan.

Yes, certain foreign workers are exempt from the LMIA requirement under specific circumstances, such as intra-company transferees, workers covered by international trade agreements (e.g., CUSMA/NAFTA), or those in academic and research positions. These exemptions allow foreign workers to obtain a work permit without an LMIA.

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In most cases, a separate LMIA application is required for each position. However, in certain programs like the Seasonal Agricultural Worker Program (SAWP), employers may be able to apply for multiple foreign workers under one LMIA, provided the job requirements and conditions are the same.

LYC Service Flow

Consultation & Assessment

Provide personalized immigration advice based on your background and goals.

Application Assistance

Help accurately complete and submit all required forms to ensure a smooth process.

Document Review & Organization

Review and organize all documents, minimizing errors and reducing the risk of delays.

Tracking & Support

Keep you updated on your application status and answer any questions along the way.

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