A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) that evaluates the effects of hiring a foreign national in Canada.
A positive LMIA: confirms that there is no Canadian citizen or permanent resident available to fill the position, allowing the employer to hire a foreign worker.
A negative LMIA: indicates that a Canadian citizen or permanent resident should occupy the position.
A foreign national cannot apply for a Labour Market Impact Assessment (LMIA). This document must be requested by the Canadian employer. While it is sometimes possible to hire a foreign worker without an LMIA or work permit, all streams of the Temporary Foreign Worker Program require the employer to obtain an LMIA to hire a foreign worker. Additionally, many immigration pathways to permanent residency require a positive LMIA to gain points for a job offer in Canada.
Applications for a Labour Market Impact Assessment (LMIA) must be submitted in paper form by mail to the appropriate Service Canada processing center. Applications must include the following:
Processing Fees: A fee of CAD 1,000 is required for all LMIA applications, and this fee is non-refundable, even in the case of a negative result. Applications for live-in caregivers may sometimes qualify for a fee exemption.
Business Legitimacy Documents: It is necessary to provide documents proving that the employer is a legitimate Canadian business.
Transition Plan: Employers must submit a plan detailing how they intend to meet the need to hire foreign workers. The goal is for employers to prioritize hiring Canadian citizens and permanent residents over temporary foreign workers (TFW).
Recruitment Efforts: Employers must demonstrate that they have made significant efforts to recruit Canadian citizens and permanent residents before turning to the hiring of TFW.
Salaries: Applications must include information about the salary offered to TFW, in order to distinguish high-paying positions from low-paying ones and ensure that TFW receive compensation equivalent to that of their Canadian counterparts.
Workplace Safety: TFW must have the same health and safety standards as Canadians in similar positions. Employers must provide proof that TFW will be covered by insurance at least equivalent to provincial or territorial health coverage.
LMIA applications for low-wage positions must also meet the following requirements:
Capping TFW: If the employer has already hired TFW, they must comply with specific requirements related to the number of TFW employed.
Transportation: Employers must ensure adequate transportation for low-wage workers to and from Canada, at the employer’s expense.
Housing: Low-wage workers must be provided with adequate housing for the duration of their employment in Canada.
After processing a Labour Market Impact Assessment (LMIA) application, employers receive a decision. If the LMIA is positive, the employer can proceed to hire a foreign national. However, if the LMIA is negative, the employer is not authorized to hire a foreign national.
Positive LMIAs are valid for six months from the date of issuance. After receiving a positive LMIA, the employer must inform the foreign national so they can apply for a work permit or permanent residence.
In some cases, employers can request expedited processing of their LMIA application, with a processing time of 10 days. To qualify for expedited processing, the employer must be located outside of Quebec and meet one of the following conditions:
In some cases, an employer can hire a foreign worker without needing to obtain a Labour Market Impact Assessment (LMIA). Most LMIA exemptions are administered by the International Mobility Program. For more information on LMIA and work permit exemptions, please refer to the information provided by the International Mobility Program.
The province of Quebec enjoys significant autonomy in immigration policies and procedures, giving it unique distinctions regarding the hiring of foreign workers. Notably, the simplified Labour Market Impact Assessment (LMIA) process allows Quebec employers to submit an LMIA application without having to demonstrate that they attempted to recruit a Canadian citizen or permanent resident for the position. For more information on the requirements related to a simplified LMIA, please refer to the available details on this process.
The Global Talent Stream (GTS) is a two-year pilot program launched in June 2017 in collaboration with Immigration, Refugees and Citizenship Canada (IRCC) and Employment and Social Development Canada (ESDC). This program aims to help certain Canadian employers recruit highly skilled talent, allowing them to remain competitive internationally. Employers who meet the program criteria can benefit from an expedited process for hiring foreign workers through the Global Skills Strategy.
The Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union (EU) establishes various trade protocols between Canada and EU member countries. This agreement provides specific opportunities for citizens of EU countries to work in Canada. Foreign nationals benefiting from CETA provisions may be authorized to work in Canada without requiring a Labour Market Impact Assessment (LMIA) or a work permit.
