LMIA Work Permit

In many cases, employers in Canada are required to obtain a Labour Market Impact Assessment (LMIA) before they can hire a foreign worker for a job in Canada. An LMIA is a document issued by Employment and Social Development Canada (ESDC) that verifies that there is a need for a foreign worker to fill a specific job in Canada and that there are no Canadians or permanent residents available to do the job.

There are some exemptions to the LMIA requirement, such as for certain categories of workers, including those covered under international agreements like the CUSMA (formerly NAFTA) or intra-company transferees, among others.

Employers who wish to hire a foreign worker and require an LMIA must demonstrate that they have made reasonable efforts to hire Canadian citizens or permanent residents for the job, and that the wages and working conditions offered to the foreign worker are consistent with those offered to Canadians working in similar positions.

The LMIA process involves a fee and can take several months to complete. Once an employer has obtained a positive LMIA, the foreign worker can use it to apply for a work permit in Canada. However, it is important to note that obtaining an LMIA does not guarantee that a work permit will be issued, as the work permit application will still be subject to review and approval by Immigration, Refugees and Citizenship Canada (IRCC).

Overall, if you are interested in working in Canada, it is important to research the requirements and eligibility criteria for your specific situation and job category to determine if an LMIA is required.

For Canadian immigration purposes the definition of “work” is very broad and is defined as an activity for which wages are paid or commission is earned, or that competes directly with activities of Canadian citizens or permanent residents in the Canadian labour market, no matter the duration of the intended activity. Generally speaking, a Labour Market Impact Assessment (LMIA) is required, indicating that the proposed employment will not adversely affect Canadian workers. In most cases a job offer from a Canadian employer is required to apply for a Canadian Work Permit. In limited situations, Canadian immigration regulations allow for Open Work Permits, which are not employer-specific. A work permit is always temporary in nature, but can often be extended from inside Canada. Below is a guide on how you can pursue a Canadian temporary work permit.

Step 1: Employer applies for a Labour Market Impact Assessment, if necessary

The Canadian government has two categories of work permits. A work permit either needs a labour market test or is exempt from requiring it. In some cases, the labour market test is required to demonstrate that the issuance of a work permit to a foreign national will not have a negative impact on the employment and wages of workers in Canada.

LMIA stands for Labour Market Impact Assessment. 

It is a document that an employer in Canada may need to obtain before they can hire a foreign worker to work in Canada. The purpose of the LMIA is to confirm that there is a need for a foreign worker to fill a specific job in Canada, and that there are no Canadians or permanent residents available to do the job.

The LMIA process is designed to protect the Canadian labour market and ensure that foreign workers are not hired to fill jobs that could otherwise be filled by Canadian workers. Employers who wish to hire a foreign worker must first demonstrate that they have made reasonable efforts to hire Canadian citizens or permanent residents for the job.

To obtain an LMIA, the employer must apply to Employment and Social Development Canada (ESDC) and provide information about the job, including the duties and responsibilities, the qualifications required, and the wage and benefit package being offered. ESDC will review the application and determine if the job meets the requirements for hiring a foreign worker. If the LMIA is approved, the employer will receive a positive LMIA, which they can use to support the foreign worker’s application for a work permit.

It’s important to note that not all foreign workers require an LMIA to work in Canada. Some categories of workers, such as international students and certain types of intra-company transferees, may be exempt from the LMIA requirement. It’s also important to note that obtaining an LMIA does not guarantee that a work permit will be issued, as the work permit application will still be subject to review and approval by Immigration, Refugees and Citizenship Canada (IRCC).

When is an LMIA not required?

In a limited number of situations foreign workers may obtain a work permit without the need for a LMIA. These work permits are typically referred to as LMIA Exempt Work Permits and include the following:

International agreements, such as the CUSMA, Comprehensive Economic and Trade Agreement (CETA), or Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP);
Canadian interest:
As a result of significant economic, social or cultural benefits to Canadians;
As a result of reciprocal agreements Canada and its provinces/territories have entered into with other countries, such as youth and teacher exchange programs;
To allow international students studying in Canada to fulfill academic requirements known as co-op placements;
To allow the accompanying spouses/common-law partners of certain work permit and Study Permit holders residing in Canada to work in Canada;
To allow for charitable or religious work;
In recognition that certain persons in Canada for reasons other than the above-mentioned, such as the making of a refugee claim, need to support themselves;
Certain permanent residence applicants in Canada;
Certain migrant workers and their dependents in Canada on employer-specific work permits who are experiencing abuse, or who are at risk of abuse.

Step 2: Employer extends Temporary Job Offer
Once a positive or neutral LMIA is granted, the Canadian employer must provide a copy of the LMIA approval letter along with a detailed job offer letter to the foreign worker, who will need those documents to apply for a work permit.

Step 3: Foreign Worker applies for Work Permit
With the LMIA approval letter, the job offer letter (and the CAQ if applicable), the foreign worker can submit an application for a Canadian temporary work permit to Immigration, Refugees and Citizenship Canada (IRCC). Depending on their country of citizenship, the foreign worker may need to obtain a temporary residence visa (TRV) to travel to Canada, and would therefore need to submit the temporary work permit application at a Canadian visa office abroad.

Step 4: Work Permit is issued
The Canadian temporary work permit, will be issued at the point of entry by a Canada Border Services Agency (CBSA) officer at the time the foreign worker arrives in Canada.

A temporary work permit may be issued for a period of time ranging from a few days to a few years.

Most Canadian work permits are employer specific, otherwise referred to as “closed” work permits, and are granted for a specific job in Canada. Consequently, a foreign worker may only work for the employer specified on the work permit. As such, if the foreign worker finds a different employment and does not yet have permanent resident status, the foreign worker must apply for and receive a new work permit prior to changing employers or their position in Canada.

Note that a Canadian Temporary Work Permit is for those foreign workers who plan on working in Canada for a finite period of time. To work and live in Canada on a permanent basis, foreign workers must undertake the Canadian permanent residence process. However, a temporary work permit may be a stepping stone to Canadian permanent residence. Once in Canada on a temporary work permit, a foreign worker may qualify for Canadian permanent residence under the Canadian Experience Class (CEC), through a Skilled Worker category, or through one of the Provincial Nominee Programs.