The Ultimate Guide to LMIA-based Work Permits in Canada: A Step-by-Step Solution

If you're a foreign national planning to work in Canada, it's essential to understand the Labour Market Impact Assessment (LMIA) and the LMIA-based work permit process. This guide provides a comprehensive overview, explaining what an LMIA is, how to apply for an LMIA-based work permit, the benefits of an LMIA-based work permit, and how and LMIA work permit differs from an open work permit.

Understanding LMIA and Work Permits

What is a Labour Market Impact Assessment (LMIA)?

The government of Canada does not want Canadian companies to hire foreign workers - they are interested in ensuring that Canadian workers have the first chance at all available job opportunities. At the same time, the government realizes that Canada has a shortage of skills in certain segments of the economy and it is in the best interests of Canadian companies to be able to hire qualified workers. The LMIA process exists to ensure that qualified Canadian workers are hired for available jobs within Canada, and that foreign workers are available to Canadian employers only if no Canadian workers are available.

A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) when a Canadian employer has applied to hire a foreign worker and an assessment the impact of hiring that foreign worker shows that it will not negatively affect the Canadian labor market. A positive LMIA means that hiring a foreign worker will not displace Canadians from the opportunity to work in that position. Once the employer receives a positive LMIA, it is used by the foreign national to support their work permit application.

Only employers can apply and pay for the LMIA—employees are not allowed to cover this cost. It is also illegal for anyone to request payment to add a foreign national's name to an LMIA. 

Do You Need an LMIA to work in Canada?

Most temporary foreign worker positions require an LMIA in order to get a work permit approved, but there are a limited number of exemptions, such as for workers under the International Mobility Program (IMP) or those eligible for open work permits. Examples of exemptions include workers covered by Free Trade Agreements and the Francophone Mobility Program. Employers must determine whether they need an LMIA before hiring a foreign worker. 

The LMIA Application Process

Provincial Regulations for Hiring Foreign Workers

Several provinces, including Saskatchewan and British Columbia, require an employer to first register with the provincial government before embarking on the process to hire a foreign worker. It's important for the Canadian employer to check the regulations in the province where the foreign worker will be employed, to ensure that company secures any required provincial registration before starting the advertising for an LMIA application.

LMIA Application Requirements

The first step in the LMIA process is usually advertising the position to Canadian workers. For most types of LMIA, the employer must advertise the job for at least a month, in several different places, and show that no qualified Canadian's applied for the job. The job postings must include specific details about the job, and the wage offered must be at least the minimum wage rate set by the government for that occupation in the specific location of work.

If no Canadian workers are found when the period of advertising has ended, the employer then can submit an LMIA application to Service Canada, which includes a job description, wage rate, job duties, qualifications, evidence that efforts were made to hire Canadian citizens or permanent residents, as well as various documents to show that the business is legitimate. There are several different types of LMIA applications that can be submitted, each with specific requirements. High-wage LMIA, low-wage LMIA, Global Talent Stream LMIA, Dual Intent LMIA, Caregiver LMIA and Agriculture LMIA's are the most utilized application streams. 

Obtaining a Positive LMIA

Once the LMIA application has been submitted, there is typically a period of waiting for several weeks to months, before an ESDC officer will review the application and make a decision. Sometimes the employer receives a telephone call to verify certain aspects of their business operations before a decision is rendered. If approved, a positive LMIA is valid for a specific period (currently 6 months as of May 2024) and the foreign worker must apply for a work permit before that period of time expires. 

How to Get an LMIA-based Work Permit

To obtain an LMIA-based work permit, the foreign worker needs a copy of the approved LMIA from the employer. The foreign worker can then apply for a work permit through Immigration, Refugees and Citizenship Canada (IRCC) by submitting the LMIA approval letter, a job offer letter, and other supporting documents such as proof of qualifications and identity.

LMIA-based Work Permit Requirements

When applying for an LMIA-based work permit, the foreign worker must provide the following:

• A positive LMIA from their employer
• A valid job offer outlining job duties, wages, and working conditions
• Proof of qualifications (education and work experience)
• Proof of language proficiency for French or English (depending on the requirements of the job)
• Personal identification documents

It's important to note that when the LMIA application was submitted, the employer specified how much education, how much previous work experience and what language skills were required for the job. When the foreign worker applies for a work permit, it's important to include evidence that you meet the requirements as set out in the LMIA application.

Processing Time for LMIA and Work Permits

Processing times for a Labour Market Impact Assessment can vary depending on the category of LMIA and the location of work, usually taking several weeks or months. After receiving a positive LMIA, the work permit application will also take additional time to process, with the timeframe depending on the visa office that will process the application. If the foreign worker is visa exempt, they can apply for their work permit at the border (either airport or land border) and receive the work permit in the same day; however, it's important to take sufficient evidence that you are qualified for the job when making an application at the border.

LMIA-based Work Permit Duration

Once approved, LMIA-based work permits are typically valid for 1 to 3 years, depending on the job type. As of September 26, 2024, low-wage workers can apply for a 1-year work permit, while high-wage workers can apply for up to 3 years. If the employer will need the worker’s services for a longer period of time, the employer will need to secure a new LMIA so that the foreign worker can apply for a work permit renewal.

Special Programs and Exemptions

Global Talent Stream (GTS)

The Global Talent Stream (GTS) allows Canadian employers to hire highly skilled foreign workers in technology and engineering fields. GTS Labour Market Impact Assessment applications usually do not require advertising, and benefit from expedited processing, which helps employers fill labor shortages faster.

Francophone Mobility and NAFTA Work Permits

Programs like Francophone Mobility offer LMIA exemptions for employers hiring Francophone or bilingual workers outside Quebec. Similarly, the U.S.-Mexico-Canada Agreement (CUSMA, formerly NAFTA) provides LMIA exemptions for certain workers from these countries, making it easier for Canadian employers to hire them.

Hiring in Quebec

Employers in Quebec must obtain a Quebec Acceptance Certificate (CAQ) before hiring foreign workers through the Temporary Foreign Worker Program (TFWP). However, the CAQ is not required for workers hired under the International Mobility Program (IMP).

LMIA-based Work Permit vs Open Work Permit

An LMIA-based work permit is a “closed” work permit, meaning the foreign worker is tied to a specific employer and location. This permit requires the employer to secure a positive LMIA before hiring the worker. On the other hand, an open work permit allows the foreign worker to work for any employer in any location in Canada and does not require an LMIA. Open work permits are often granted to the spouses of temporary foreign workers or international students.

Benefits of an LMIA-based Work Permit

• Legal Employment: Workers can legally work in Canada and gain valuable experience.
• Pathway to Permanent Residency (PR): Workers can use an LMIA-based work permit to apply for PR through programs like Express Entry, earning 50 points for arranged employment.
• Addressing Labor Shortages: A Canadian employer can hire foreign workers to fill critical gaps in their workforce.

Frequently Asked Questions about LMIA

How long does it take to get a work permit after LMIA?

The processing time can range from weeks to months, depending on the completeness of the application and the processing speed of the visa office handling the LMIA work permit application.

Can I work while waiting for my LMIA work permit?

No, you cannot work while waiting unless you already have a valid work permit and applied inland for the new LMIA work permit before the expiry of your current permit. However, note that during this period of maintained status, you can only work for the employer listed on your initial work permit. You cannot start working for a new employer until you have a work permit issued with their name on it.

How much does a Labour Market Impact Assessment cost?

The LMIA application fee is CAD $1,000 per position, and it must be paid by the employer. There are also usually fees for the specialized advertising that must take place, plus any fees for counsel hired to manage the LMIA application process.

Can an LMIA work permit be renewed?

Yes, but the employer must obtain a new LMIA before renewing the worker’s permit.

What is the difference between an LMIA work permit and an open work permit?

An LMIA work permit is tied to a specific employer, while an open work permit allows the foreign worker to work for any employer without needing an LMIA.

Conclusion

Navigating the LMIA-based work permit process may seem complex, but understanding the steps, from obtaining a positive LMIA to submitting a complete work permit application, can help ensure a successful outcome. Whether you’re a foreign national applying for a new work permit, renewing one, or exploring options for permanent residency, this guide provides the essential information you need to navigate the process effectively.

The Way Immigration has successfully handled thousands of LMIA applications and LMIA work permits since 2008. Contact Calgary's top immigration firm for assistance with LMIA or work permit processing. Please note that we do not find jobs for applicants, nor do we sell LMIA's. We work strictly with the immigration aspects of foreign worker matters, and have one of the highest success rates in the industry.