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 important to understand the Labour Market Impact Assessment (LMIA) and how the LMIA-based work permit process works. This guide gives you a clear overview of the LMIA process, how to apply for an LMIA-based work permit, the benefits of getting one, and how it differs from an open work permit.
What is LMIA in Canada: Understanding LMIA Work Permits
What is a Labour Market Impact Assessment (LMIA)?
The Canadian government wants to make sure Canadian citizens and permanent residents have the first opportunity at available jobs in Canada. However, in some cases, there may be a shortage of workers with the right skills in the Canadian workforce. In these situations, the government allows Canadian employers to hire temporary foreign workers—but only after going through the Labour Market Impact Assessment (LMIA) process. Employers must recruit by advertising job vacancies to locals first before they can hire foreign workers.
An LMIA is a document issued by Service Canada, under Employment and Social Development Canada (ESDC). It shows that hiring a temporary foreign worker will not have a negative impact on the Canadian labour market. If the LMIA is positive, it means the employer has been unable to hire Canadian citizens or permanent residents to fill the job, and hiring a temporary foreign worker is justified.
Employers must apply for the LMIA and pay for the LMIA processing fee before hiring temporary foreign workers. Foreign workers are not allowed to pay for the LMIA process, and it is illegal for anyone to charge a fee to have a foreign worker's name added to an LMIA. Once the employer receives a positive LMIA, the foreign national can use it to apply for a WP.
Required LMIA documents for employers include proof of business registration, financial statements, and recruitment efforts documentation.
LMIA Requirements: Do You Need an LMIA Work Permit?
In most cases, yes—foreign nationals need an LMIA to get a WP in Canada. However, there are some exceptions whereby a work permit is possible without obtaining an LMIA.
Certain workers are exempt from the LMIA requirement under special programs like the International Mobility Program (IMP) or if they qualify for an open work permit. Some common LMIA exemptions include:
- Workers covered by Free Trade Agreements (like CUSMA)
- Participants in the Francophone Mobility Program
- Spouses of skilled workers or international students
- International Experience Canada (IEC) participants
Before hiring foreign nationals, the employer must check if an LMIA is required or if the job is exempt.
How to Apply for LMIA: Complete LMIA Application Guide
Before hiring a foreign worker, employers should budget between $3,700 and $8,000 per temporary foreign worker for the LMIA application process, considering various associated costs.
Provincial Regulations for Employers Hiring Foreign Workers
Some provinces, such as British Columbia and Saskatchewan, require employers to register with the provincial government before they can hire a temporary foreign worker.
It’s important for employers to check the rules in the province where the worker will be employed. In some cases, provincial registration must be completed before starting the job advertisement or applying for a Labour Market Impact Assessment (LMIA). Failing to follow these steps may delay the approval process or result in the LMIA application being refused.
LMIA Application Requirements
To apply for an Labour Market Impact Assessment (LMIA), Canadian employers must submit several documents, including:
- Business legitimacy documents - Proof that the employer is a legitimate business
- Proof of business registration
- Financial statements
- Proof of thorough recruitment efforts
- Job advertisements
- Recruitment records
Employers wishing to hire foreign nationals are legally responsible for covering all costs associated with the LMIA application process and cannot pass these costs onto temporary foreign workers.
Step 1: Advertising the Job
Employers must make recruitment efforts amongst Canadian workers in the Canadian labour market by advertising job vacancies to Canadian citizens and permanent residents first before they can hire foreign workers. Here are the key rules during the LMIA process:
- Minimum advertising period: Employers should advertise job vacancies for at least 4 consecutive weeks before submitting an application for an LMIA.
- Platform requirement: Must advertise job postings on Canada's Job Bank plus at least two other sources, depending on the type of LMIA that will be submitted
- During the hiring process, employer must use the Job Match service for recruitment purposes when advertising a position on Job Bank, and invite all Canadian workers with a certain match score
- Job posting content: Must include details such as job duties, wage, location, and required qualifications. Note that there are very specific requirements that must be included in the advertising or the LMIA will be refused. In our experience, it is incredibly rare for an employer to get the advertising right on their own. If you don't regularly submit LMIA's in your company, please hire a representative to ensure that your application is done properly.
- Wage requirement: When hiring a foreign worker, the Canadian government requires that the wage you offer meets or exceeds the prevailing wage rate for that job in your region. The prevailing wage is the official minimum acceptable wage set by the government, based on occupation and location. To receive a positive LMIA, employers must advertise and offer at least the prevailing wage rate.
Step 2: Submitting the LMIA Application
If no qualified Canadian citizens or permanent residents applied during the recruitment period, the employer can then submit an LMIA application to Service Canada (under Employment and Social Development Canada ESDC). The application must include:
- Job title, description and responsibilities
- Wage offered and working conditions
- Qualifications required for the position - note that the qualifications must be a reasonable match to what the government says is required for the position in the official NOC code listing
- Proof of recruitment efforts, including recruitment details on Job Bank
- Business legitimacy documents to prove the company is legitimate and operational
- Detailed job offer
Types of LMIA Applications
There are several specific LMIA streams, each with its own rules and LMIA requirements. The most common ones are:
High Wage Positions
Businesses hiring foreign workers in high-wage positions must submit a Transition Plan with their LMIA application. This transition plan outlines how the employer will reduce their reliance on temporary foreign workers over time—such as by training Canadian citizens or permanent residents to fill the role in the future.
The transition plan is mandatory for all High-Wage LMIA applications, unless the position qualifies for an exemption like the Global Talent Stream.
To qualify for a High-Wage LMIA, the wage you offer must meet two conditions:
- It has to be at least 20% higher than the provincial or territorial median wage (this is the general benchmark wage in each province/territory).
- It also has to be at least the prevailing wage for the specific job in your location (the official minimum wage rate set by the government for that occupation and region).
For example, in 2025, the minimum acceptable high-wage threshold is C$36.00/hour in Ontario and C$36.60/hour in British Columbia.
Low Wage Positions
Businesses hiring foreign workers in low-wage positions are not required to submit a transition plan with their LMIA application. However, there are important restrictions:
- Low-wage LMIA applications are not allowed in regions with an unemployment rate of 6% or higher. Employers hoping to hire low wage foreign workers should keep monitoring the unemployment rate in their regions for most recent updates. Please refer to the list of regions where the unemployment rate is a factor in terms of processing an LMIA.
- Businesses hiring foreign workers must also follow limits on the number of low-wage workers they can hire, based on the size of their workforce. For low wage worker employers, there's a 10% or 20% cap on the proportion of low wage workers depending on the industry (NAICS) and positions (NOC).
Global Talent Stream
The Global Talent Stream is a pilot program with a simplified LMIA application process, that allows employers to hire high-skilled foreign workers quickly, without proof of recruitment efforts.
To apply under GTS, employers must:
- Be referred by a Designated Partner (for Category A), or
- Hire workers in specific in-demand tech occupations (for Category B)
- Work with ESDC to create a Labour Market Benefits Plan, showing how they will benefit the Canadian labour market (e.g. job creation, skills transfer)
The GTS offers faster processing times for LMIA, often in 2 weeks or less. It is also supposed to offer faster processing times for work permits, often in about 3 weeks.
Caregiver LMIA
Employers hiring in-home caregivers (such as for children, seniors, or persons with medical needs) can apply under the Caregiver LMIA stream.
To qualify, employers must:
- Prove there is a genuine need for caregiving support in the home
- Demonstrate they cannot find a suitable Canadian or permanent resident to fill the role
- Demonstrate that they can afford to pay the caregiver based on their annual income and family size
- Provide acceptable living conditions (if the job requires the caregiver to live in the home)
- Pay the caregiver at least the prevailing wage for the region and occupation
- Hire a caregiver who already has either a valid work permit or a valid study permit for Canada. It is not possible to hire a caregiver from overseas using an LMIA.
Caregiver LMIAs may also allow foreign workers to apply for permanent residency through specific pathways, depending on their experience.
Agriculture LMIA
To apply under the Primary Agriculture Stream to hire agricultural workers, employers must:
- Provide proof of ongoing agricultural operations
- Demonstrate that the position falls under an eligible National Occupation Classification (NOC) for primary agriculture
- Offer housing and transportation to the agricultural worker (as required by the program)
- Complete a housing inspection with a certified inspector
- Ensure compliance with Canadian labour laws and workplace safety standards
This stream supports employers in filling agricultural worker positions that are either seasonal workers or year-round workers in the farming, livestock, and greenhouse industries.
LMIA Approval Time and Processing Requirements
To apply for an LMIA, employers must complete an online application and submit required documents to Service Canada (Employment and Social Development Canada ESDC). These documents may include proof of recruitment efforts, business legitimacy, and financial capacity to hire a foreign worker.
Cost of LMIA
Legal fees for assistance with LMIA applications can range from $2,250 to $7,000 per LMIA application, depending on the complexity of the situation.
The government processing fee for an LMIA application is typically $1,000 per employee.
Advertising costs will run between $150 - $400 per application, depending on the advertising platforms that are suitable for the given occupation.
Average Processing Time of LMIA
After submitting the application, employers typically wait several weeks to a few months for a decision. In some cases, a Service Canada (ESDC) officer may call the employer to verify business operations before approving the LMIA.
If approved, a positive LMIA is valid for 6 months (info valid as of May 2024). During this time, the foreign worker must submit their work permit application before the LMIA expires.
Employer Compliance
Employers participating in the temporary foreign worker program (TFWP) are subject to inspections from Service Canada (Employment and Social Development Canada ESDC) to ensure compliance with labor market regulations post-hire.
LMIA Based Work Permit: How to Get Your Work Permit After LMIA
After receiving a positive LMIA, employers must notify the foreign national and provide them with a copy of the LMIA approval letter.
The foreign worker can then apply online for a work permit from Immigration, Refugees and Citizenship Canada (IRCC). The application must include a copy of the approved LMIA. The foreign worker must submit their application before the LMIA expires (usually within 6 months) and meet all other eligibility requirements for a Canadian WP.
LMIA-based Work Permit Requirements
When applying for an LMIA-based WP, the foreign worker must provide:
- A positive LMIA issued by the employer
- A valid job offer that includes job duties, wages, and working conditions
- Proof of qualifications, such as education and past work experience
- Proof of language ability in English or French (if required for the job)
- Personal identification documents, such as a valid passport
It’s important to understand that the employer sets the job requirements—including education, work experience, and language skills—when submitting the LMIA application. These requirements must be a reasonable match to those listed in the NOC code for that specific occupation. When the foreign worker applies for the WP, they must include clear evidence that they meet these specific requirements. For that reason, it's important to plan carefully when starting the LMIA process, to ensure that the prospective foreign worker will be able to meet any job requirements you include in the LMIA.
Processing Time for LMIA and Work Permits
LMIA applications can take several weeks to a few months to process, depending on the stream (e.g. high-wage, low-wage, agriculture, or Global Talent Stream) and the job location. LMIA processing times for high-wage positions typically range from 2-3 months, while low-wage positions may take longer. Delays are common due to high application volumes and the complexity of some cases.
After receiving a positive LMIA, the foreign worker must apply for a work permit through Immigration, Refugees and Citizenship Canada (IRCC). Work permit processing times vary based on the applicant’s country of residence and the visa office responsible for the file.
In the past, visa-exempt applicants could apply for a WP at a Canadian port of entry—a practice known as “flagpoling.” However, as of December 23, 2024, IRCC has restricted flagpoling for most foreign nationals, including those applying for LMIA-based WPs. Most applicants must now apply online from within Canada or at a visa office located outside the country.
Only a few exceptions remain for certain visa-exempt workers to apply at the port of entry, such as U.S. citizens under specific LMIA-exempt categories (e.g. CUSMA professionals or GTS tech workers). For most LMIA-based WP applicants, applying at the border is no longer an option.
LMIA-based Work Permit Duration and Employment Period
Once approved, LMIA-based WPs are typically valid for 1 to 3 years, depending on the job type and wage classification. If the employer needs the worker for a longer period, they must apply for a new LMIA, which the foreign worker can then use to apply for a WP extension.
As of September 26, 2024:
Employment Duration for High Wage Workers
High-wage workers can receive WPs valid for up to 3 years. This longer period helps support job stability and workforce planning for employers offering competitive wages.
Employment Duration for Low Wage Workers
Low-wage workers are generally issued 1-year WPs. If the employer wants to continue the employment beyond one year, they must reapply for a new LMIA and go through the recruitment process again before the worker's work permit will expire.
Special LMIA Programs and Exemptions from LMIA
Global Talent Stream (GTS)
The Global Talent Stream (GTS) is part of Canada’s Temporary Foreign Worker Program, designed to help employers hire highly skilled foreign workers quickly—particularly in technology and engineering sectors.
GTS applications benefit from expedited processing, often within two weeks, and usually do not require advertising.
There are two categories under the GTS:
Category A – Designated Partner Referral
Employers under Category A must be referred by a designated referral partner, such as a provincial economic development agency or business accelerator. This stream is for high-growth or innovative companies that need to hire specialized talent to scale up.
Category B – In-Demand Occupations
Category B allows employers to hire foreign workers for jobs on the Global Talent Occupations List, which includes roles such as:
- Software engineers and designers
- Computer programmers and interactive media developers
- Information systems analysts
- Electrical and electronics engineers
- Civil engineers
- Mathematicians and statisticians
- UX designers and others
Employers in both categories must work with ESDC to create a Labour Market Benefits Plan, which outlines how the company will benefit Canada’s labour market—such as through job creation, skills transfer, or training opportunities for Canadians.
International Mobility Programs: Francophone Mobility, CUSMA, CETA, and Intra-Company Transfer Work Permits
LMIA-exempt work permits enable foreign nationals to work in Canada without the employer needing to obtain an LMIA. These permits fall under the International Mobility Program (IMP) and are usually granted when the job offers significant cultural, economic, or reciprocal benefits to Canada.
Francophone Mobility Program
Employers can hire Francophone or bilingual workers to work outside Quebec without an LMIA. This program supports the promotion of French-speaking communities across Canada. Note that the worker is not required to speak French as part of the job offer. They simply have to be proficient in the French language.
CUSMA (formerly NAFTA)
Under the Canada–United States–Mexico Agreement (CUSMA), certain professionals, intra-company transferees, and business visitors from the U.S. and Mexico are eligible for LMIA-exempt WPs, making it easier for Canadian employers to hire from these countries.
CETA
The Canada–European Union Comprehensive Economic and Trade Agreement (CETA) provides LMIA exemptions for citizens of EU member states. It covers professionals, investors, intra-company transferees, and certain short-term business visitors.
Intra-Company Transfers
Foreign workers employed by a company outside Canada can transfer to a Canadian branch, parent, affiliate, or subsidiary without an LMIA. This is often used for executives, managers, or employees with specialized knowledge.
Hiring in Quebec
If an employer in Quebec is hiring a foreign worker through the Temporary Foreign Worker Program (TFWP), they must obtain a Quebec Acceptance Certificate (CAQ) in addition to the LMIA.
However, the CAQ is not required for workers hired under the International Mobility Program (IMP), including those applying through programs like Francophone Mobility or Intra-Company Transfers.
LMIA-based Work Permit vs Open Work Permit
An LMIA-based WP is a closed WP, which means the foreign worker is limited to working for the specific employer and at the location listed on the permit. To get this type of permit, the employer must first obtain a positive Labour Market Impact Assessment (LMIA) before hiring a foreign worker.
In contrast, an open work permit allows the foreign worker to work for almost any employer in any location in Canada. Open WPs do not require an LMIA and are commonly issued to:
- Spouses of skilled foreign workers or international students
- International Experience Canada (IEC) participants
- Refugee claimants, certain permanent residency applicants, and other eligible groups
- Foreign nationals who have applied for Permanent Residence in Canada
- Workers approved for a Vulnerable Open Work permit
- Individuals from certain countries where it would be currently difficult for them to go home (ie, Ukraine, Iran, etc.)
Each permit type serves a different purpose and has its own eligibility requirements.
Benefits of an LMIA-based Work Permit
Legal Right to Work
An LMIA-based WP allows foreign workers to legally work in Canada, gaining valuable Canadian work experience that can support both short-term employment goals and long-term immigration plans.
Pathway to Permanent Residence
One important benefit previously associated with an LMIA-based WP was that it could provide additional points in the Express Entry system through a qualifying job offer. However, as of March 25, 2025, IRCC has removed the extra points for job offers, even those supported by an LMIA.
That said, working in Canada on an LMIA-based WP can still support a permanent residency application. Foreign workers can gain valuable Canadian work experience, which may make them eligible for Express Entry programs such as the Canadian Experience Class, or help increase their Comprehensive Ranking System (CRS) score through the experience and adaptability categories.
While an LMIA no longer guarantees extra points on its own, it still plays an important role in helping foreign workers build a pathway to PR through skilled Canadian work experience.
Fill Labour Shortages
For Canadian employers, LMIA-based WPs provide a solution to address labour shortages. When qualified Canadians or permanent residents are not available for a role, employers can fill essential positions by hiring skilled foreign workers through the LMIA process.
Frequently Asked Questions about LMIA
How do I get an LMIA-based work permit?
To get an LMIA-based WP:
A Canadian employer must first apply for a Labour Market Impact Assessment (LMIA) and receive a positive result.
Once the LMIA is approved, the employer gives you a job offer letter and a copy of the LMIA.
You then apply to IRCC for a WP, using those documents.
Does LMIA give you a work permit?
No, the LMIA itself does not grant you a WP. It is one of the documents that you need in order to apply for a work permit. First your employer obtains the LMIA, then you must apply to IRCC to receive the WP.
Is LMIA eligible for PR?
An LMIA can still support your pathway to permanent residency, but it no longer provides CRS points under Express Entry.
Express Entry (after March 25, 2025):
Job offers supported by an LMIA no longer give the 50 or 200 CRS points they previously did.
Still relevant for eligibility:
A valid LMIA-backed job offer may still help you meet eligibility requirements for programs like the Federal Skilled Worker Program, Federal Skilled Trades Program, and certain Provincial Nominee Programs (PNPs).
Other pathways to PR:
LMIA-based work experience in Canada can still count toward the required Canadian work experience for programs like the Canadian Experience Class (CEC) and various PNPs.
Which business can issue LMIA?
Any legally operating business in Canada can apply for an LMIA if:
They can demonstrate a genuine need for a foreign worker,
They have sufficient revenue to pay the worker,
They meet all advertising and recruitment requirements, and
They have a clean compliance history with immigration and employment laws.
Note: LMIA approval is not guaranteed, and there are different rules for high-wage and low-wage positions.
What is the minimum wage for LMIA in Canada?
The wage must meet or exceed the prevailing (median) wage for the occupation in the specific region, as listed on the Job Bank.
There is no universal “minimum wage” for LMIAs. Each occupation in each location will have a different prevailing wage, as defined by the Canadian government.
If the offered wage is below the median or prevailing wage, the LMIA application will be refused.
Employers are required to check the prevailing wage rates on an annual basis and provide increases to any LMIA based employees if the rate for their position has increased.
How long does it take to get a work permit after LMIA?
The processing time for an LMIA based work permit can range from weeks to months, depending on the completeness of the application and the processing speed of the visa office handling the LMIA WP application.
Can I work while waiting for my LMIA work permit?
Working while waiting for a new LMIA work permit depends on your situation.
If you are outside of Canada, you will need to wait to start work in Canada until your new work permit has been approved.
If you are inside of Canada with visitor status, then you cannot work until your new work permit has been approved.
If you are inside of Canada with an open work permit, then you can start working for your new employer while waiting for the LMIA work permit to be approved.
If you're already in Canada on a valid, closed (employer-specific) WP, a temporary public policy now allows you to start working for a new employer before your new LMIA-based WP is finalized. As of May 27, 2025, eligible foreign workers can begin a new job once they:
Are in Canada with valid temporary resident status
Have submitted a WP application naming the new employer
Have submitted a request for interim work authorization through IRCC and received confirmation
Once interim authorization is approved—which typically takes 3-6 weeks —you can legally begin working for the new employer, even while your WP application is still in processing.
Important: You must wait for IRCC's confirmation of interim approval before starting the new job. If you haven’t received this authorization, or if you’re outside Canada, you cannot begin working for the new employer until your new WP is issued.
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.
How long is my Labour Market Impact Assessment valid for?
A positive LMIA is usually valid for 6 months from the date of issue. This means that the foreign worker must submit their application for a work permit within 6 months of the date the LMIA was approved.
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-based WP is tied to a specific employer, while an open WP allows the foreign worker to work for any employer without needing an LMIA.
What are the common reasons for Labour Market Impact Assessment refusals?
There are a lot of reasons that an LMIA might be refused. It's important to remember that the role of the Service Canada officer assessing the LMIA application is to refuse the application. The government wants Canadians hired for all jobs, not foreign workers. That said, if a perfect LMIA application is submitted with all of the requirements carefully addressed, it is possible to obtain an approval. It is always advisable to hire experienced counsel in order to maximize the chances of LMIA approval.
Some of the most common reasons for LMIA refusal include:
Improper or insufficient advertising - there are a myriad of small details that must be addressed in the advertising for an LMIA
Specifying employment requirements that do not match those listed in the government NOC code for that position. Many employer want to tailor their job posting to make it difficult for Canadian workers to qualify for the job. The job requirements listed must be a reasonable match to the government NOC code listing, or the LMIA will be refused. You cannot mandate that the worker speaks Mongolian and is at least 7 feet tall in order to exclude Canadians and hire your nephew.
Not hiring Canadian workers - if a Canadian worker is available and can do the job, the employer must hire them instead of a foreign worker. It doesn't matter if the employer prefers the foreign worker, Canadian workers must take priority.
Not meeting the program conditions - there are always restrictions on the numbers of workers that can be hired using an LMIA, the wages that need to be paid, and the contract conditions necessary for LMIA approval. Submitting an LMIA application that does not meet all of these conditions is another common reason for refusal.
Conclusion
Navigating the LMIA-based WP process may seem complex, but understanding the steps, from obtaining a positive Labour Market Impact Assessment to submitting a complete WP application, can help ensure a successful outcome. Whether you’re a foreign national applying for a new WP, renewing a work permit, 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-based work permits since 2008. Contact the best immigration consultant in Calgary for assistance with LMIA or WP processing. Please note that we do not find jobs for applicants, nor do we sell LMIA's. We are familiar with the Alberta immigration aspects of foreign worker matters, and have one of the highest success rates in the industry.
