A Labour Market Impact Assessment (LMIA) is often the first major step when a Canadian employer wants to hire a temporary foreign worker for a job that is not LMIA-exempt. The employer applies to Service Canada, and the foreign worker normally applies for a work permit only after a positive LMIA is issued.

First determine the correct LMIA stream

For many positions, the wage offered determines whether the employer applies under the high-wage or low-wage stream. Service Canada compares the offered wage with the current provincial or territorial hourly wage threshold. Thresholds can change, so employers should check the current table before starting recruitment.

Offering a wage above the threshold is not enough on its own. The employer must also meet the full requirements of the applicable stream.

The LMIA processing fee

The standard LMIA processing fee is currently $1,000 for each position requested, subject to specific exemptions. The employer cannot recover the processing fee or recruitment costs from the temporary foreign worker.

Business legitimacy

Service Canada assesses whether the business and job offer are genuine. Employers may need to provide documents showing the business is operating, able to meet the terms of the job offer and genuinely requires the position being requested.

The job duties, wage, working conditions and employment relationship should all be consistent with the application and the applicable National Occupational Classification (NOC).

Recruitment and advertising

Employers generally need to demonstrate reasonable efforts to recruit Canadians and permanent residents before applying. The exact recruitment rules depend on the LMIA stream.

For high-wage positions, Service Canada currently requires at least three recruitment activities, including Job Bank and two additional methods that are appropriate for the occupation. High-wage recruitment must generally run for at least four consecutive weeks within the three months before the application, and at least one recruitment activity must continue until an LMIA decision is made.

Low-wage recruitment has different current requirements, including a longer minimum advertising period. Employers should use the stream-specific government checklist rather than assuming the high-wage rules apply.

Low-wage refusal-to-process rules

Some low-wage LMIA applications in census metropolitan areas may not be processed when the applicable unemployment rate is 6% or higher, subject to the current exemptions and temporary measures. The unemployment-rate table is updated every three months, so employers should verify the work location before spending time and money on the application.

Transition plans for high-wage positions

A transition plan is generally required for high-wage LMIA applications unless an exception applies. The plan describes activities the employer will take to recruit, retain and train Canadians and permanent residents and reduce reliance on the Temporary Foreign Worker Program.

After a positive LMIA

A positive LMIA is not itself a work permit. The employer provides the worker with the LMIA documentation, and the foreign worker must then submit the appropriate work-permit application and satisfy IRCC’s requirements.

Common LMIA mistakes

• Using the wrong wage stream or outdated wage threshold
• Recruitment that does not meet the current stream requirements
• Inconsistent NOC, duties, wage or working conditions
• Weak business-legitimacy documentation
• Failing to assess a low-wage refusal-to-process rule before filing
• Stopping required recruitment too early
• Treating the positive LMIA as if it were the worker’s work permit

CanLink assists employers with LMIA strategy, recruitment review, business documents, transition plans and the worker’s subsequent work-permit application. Visit our Work Permits & LMIA service page or request a consultation.

Official government resources

• High-wage and low-wage LMIA streams
• High-wage program requirements
• Low-wage program requirements
• LMIA refusal-to-process rules

LMIA rules change regularly and some occupations or streams have special requirements. Confirm the current program rules before recruitment begins.