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An LMIA Application may be required when a Canadian employer wants to hire a temporary foreign worker through the Temporary Foreign Worker Program. A Labour Market Impact Assessment (LMIA) allows Employment and Social Development Canada (ESDC)/Service Canada to assess the proposed employment and its potential impact on the Canadian labour market.
At Nadeem Law Office, we assist Canadian employers with LMIA Applications, including determining the appropriate LMIA stream, reviewing recruitment and advertising requirements, preparing supporting documentation, addressing wage requirements, and responding to issues that may arise during processing.
With our head office in Mississauga and branch offices in Cambridge and London, Ontario, we assist employers and businesses with LMIA and related Canadian immigration matters.
A Labour Market Impact Assessment is an assessment conducted by ESDC/Service Canada when an employer seeks to hire a foreign worker under an LMIA-based Temporary Foreign Worker Program stream.
The assessment considers whether the employer and job offer meet program requirements and the impact that hiring a temporary foreign worker would have on Canada’s labour market.
A positive LMIA generally indicates that the employer has demonstrated the need to hire a temporary foreign worker under the applicable program requirements. The foreign worker may then use the LMIA, together with the required employment information and other documents, to apply for a work permit where eligible.
A positive LMIA does not itself constitute a work permit or guarantee that the worker’s immigration application will be approved.
Whether an employer requires an LMIA depends on the circumstances of the proposed employment and the immigration category being used.
Many foreign workers hired under the Temporary Foreign Worker Program (TFWP) require a positive LMIA before they can apply for an employer-specific work permit.
However, not every foreign worker requires an LMIA. Canada also has LMIA-exempt work permit categories under the International Mobility Program, including certain categories based on international agreements, significant benefits, reciprocal employment, intra-company transfers, and other exemptions.
Before beginning an LMIA Application, it is therefore useful to determine whether an LMIA is actually required or whether an LMIA-exempt work permit category may apply.
Different LMIA streams apply depending on the nature of the position, wage, industry, and purpose of the employment.
These can include:
Selecting the correct stream is important because recruitment, wage, documentation, employment duration, and other requirements can differ.
Whether a position falls within the high-wage or low-wage stream is generally determined by comparing the offered wage with the applicable provincial or territorial hourly wage threshold.
As of July 17, 2026, the high-wage threshold for Ontario is $36.92 per hour. A position offered at or above the applicable threshold is generally processed under the high-wage stream, while a position below the threshold generally falls under the low-wage stream.
The thresholds are updated periodically. Employers should therefore verify the applicable threshold when preparing an LMIA Application.
High-wage LMIA Applications also generally require a transition plan explaining the employer’s activities to recruit, retain, or train Canadians and permanent residents and reduce reliance on the Temporary Foreign Worker Program.
Positions offered below the applicable provincial or territorial hourly wage threshold generally fall within the low-wage stream.
Low-wage LMIA Applications are subject to additional requirements and restrictions that may include limits on the proportion of temporary foreign workers employed at a particular work location.
The rules vary depending on the employer’s sector, location, and circumstances.
Employers should determine whether a low-wage LMIA Application can be processed before undertaking recruitment or making commitments to a prospective foreign worker.
Recruitment is a central component of many LMIA Applications.
The Temporary Foreign Worker Program generally requires employers to demonstrate reasonable efforts to recruit or train Canadian citizens and permanent residents before hiring a temporary foreign worker.
For the high-wage stream, current requirements generally require at least three different recruitment activities, including advertising on the Government of Canada’s Job Bank, subject to the applicable rules concerning alternative recruitment methods.
Additional recruitment methods must generally be appropriate for the occupation and capable of reaching potential qualified applicants.
Employers should retain appropriate records of their recruitment efforts because these records may be relevant to the LMIA assessment and future compliance inspections.
Simply posting advertisements does not necessarily satisfy the LMIA requirements.
An employer should be prepared to provide information about recruitment efforts and the results of those efforts, including applications received and reasons Canadian citizens or permanent residents were not selected where applicable.
The recruitment information should be accurate and consistent with the position described in the LMIA Application.
Employers should avoid creating unnecessary or unreasonable employment requirements simply to favour a particular foreign worker.
Employers must offer wages that satisfy the applicable Temporary Foreign Worker Program requirements.
The wage offered to the temporary foreign worker generally needs to be consistent with the applicable prevailing wage for the occupation and work location.
The provincial or territorial hourly wage threshold determines whether the application falls within the high-wage or low-wage stream, but that threshold is not necessarily the wage the employer must ultimately offer.
For example, increasing an offered wage simply to move a position into the high-wage stream does not necessarily satisfy program requirements.
Employers should therefore assess both the applicable stream threshold and the prevailing wage requirements before submitting an LMIA Application.
Employers applying under the Temporary Foreign Worker Program must demonstrate that the business and job offer are legitimate.
Depending on the circumstances, Service Canada may require documents concerning the employer’s business operations and ability to fulfill the terms of the job offer.
The assessment can involve questions concerning whether the business provides a good or service in Canada and whether the employer can reasonably meet the employment obligations associated with the position.
The supporting documents required will depend on the business and the LMIA stream.
The LMIA Application should accurately describe the proposed position, including:
The position should also be classified under the appropriate National Occupational Classification (NOC).
The job title alone does not determine the correct NOC. The actual duties and responsibilities of the position are important when determining the appropriate occupational classification.
For many LMIA streams, the current government processing fee is $1,000 for each position requested.
The processing fee generally cannot be recovered from the temporary foreign worker. Employers and third-party representatives are prohibited from requiring the foreign worker to pay or reimburse an LMIA processing fee.
Certain LMIA applications are exempt from the processing fee, including specified agricultural positions and certain applications used only to support permanent residence.
The applicable fee should therefore be confirmed based on the particular LMIA stream.
An employer may, in appropriate circumstances, submit an LMIA to support a foreign worker’s application for Canadian permanent residence.
Depending on the circumstances, an LMIA may be sought only to support permanent residence or for a dual purpose involving both permanent residence and temporary work authorization.
Different fee and program requirements may apply depending on which option is selected.
It is also important to distinguish an LMIA from the separate requirements of the immigration program through which the foreign worker intends to apply for permanent residence.
The Global Talent Stream is part of the Temporary Foreign Worker Program and is intended for certain employers seeking highly skilled foreign workers.
Depending on the category, an employer may need a referral from a designated partner or may seek to hire a worker in an eligible occupation.
The Global Talent Stream has requirements that differ from ordinary high-wage LMIA Applications, including requirements involving a Labour Market Benefits Plan.
Employers considering this stream should determine whether the business and proposed worker meet the applicable requirements.
Employers seeking to hire foreign workers to provide certain in-home caregiving services may also encounter LMIA requirements.
The rules for caregiver positions have changed significantly over time and can depend on the worker’s location and proposed place of employment.
An employer should confirm whether an LMIA-based caregiver work permit route is currently available before proceeding with the LMIA process.
If Service Canada issues a positive LMIA, the employer generally provides the required LMIA information and employment documents to the foreign worker.
The worker may then apply to Immigration, Refugees and Citizenship Canada for a work permit, where eligible.
For positive LMIA decisions on applications received since May 1, 2024, the LMIA is generally valid for a maximum of six months, with limited exceptions. The foreign worker must generally submit the work permit application before the LMIA expiry date.
The LMIA validity period should not be confused with the authorized duration of employment or the eventual expiry date of the worker’s work permit.
A positive LMIA is an important part of an LMIA-based work permit application, but it does not guarantee that the foreign worker will receive a work permit.
IRCC separately assesses the foreign worker’s application.
The worker must satisfy the applicable immigration requirements, which can include matters concerning admissibility, qualifications, documentation, temporary residence, and the proposed employment.
Employers and workers should therefore treat the LMIA Application and work permit application as separate stages of the process.
An employer’s responsibilities do not necessarily end when the LMIA is approved or the foreign worker begins employment.
Employers participating in the Temporary Foreign Worker Program must comply with applicable requirements concerning wages, working conditions, employment duties, record keeping, and worker protections.
Service Canada can conduct employer compliance inspections.
Non-compliance can result in consequences that may include administrative monetary penalties, restrictions on using the Temporary Foreign Worker Program, and other measures depending on the circumstances.
An LMIA Application may receive a negative decision if Service Canada determines that the applicable program requirements have not been met.
Potential issues can involve:
Service Canada may also refuse to process certain LMIA Applications under policies applicable to particular positions, locations, sectors, or employers.
A negative LMIA and a refusal to process are different outcomes and should be reviewed based on the particular circumstances.
If an LMIA Application receives a negative decision, the employer should first review the reasons for the decision and determine what issue led to the outcome.
Depending on the circumstances, the employer may consider whether to address the identified deficiencies and submit a new LMIA Application.
The appropriate approach will depend on the reason for the negative decision, whether the applicable stream remains available, and whether the employer can satisfy the program requirements.
Where there are concerns about the legality or fairness of the decision, legal remedies may also need to be considered.
In appropriate circumstances, a negative LMIA decision may be challenged through an Application for Leave and Judicial Review before the Federal Court of Canada.
Judicial review is different from submitting another LMIA Application. The Federal Court reviews the administrative decision to determine whether there is a legal basis for judicial intervention.
If judicial review is successful, the Court may set aside the decision and return the matter for reconsideration. The Court does not normally issue a positive LMIA itself.
Strict deadlines apply to Federal Court proceedings. An employer considering judicial review should therefore obtain legal advice promptly after receiving a negative LMIA decision.
Whether it is more appropriate to submit a new application or seek judicial review depends on the decision, the application record, and the particular legal and procedural issues involved.
At Nadeem Law Office, we assist Canadian employers with LMIA Applications and related matters, including:
We review the employer’s circumstances, proposed position, recruitment efforts, wage, and supporting documentation to identify potential issues before the LMIA Application is submitted.
An LMIA Application can involve detailed recruitment, wage, business legitimacy, documentation, and Temporary Foreign Worker Program requirements. Requirements also change periodically, making it important for employers to work with the rules in effect when the application is prepared.
Whether you are hiring a temporary foreign worker for the first time, preparing a high-wage or low-wage application, supporting a worker’s permanent residence, or dealing with a negative LMIA decision, Nadeem Law Office can assist you in understanding the available options.
Nadeem Law Office provides LMIA and Canadian immigration legal services through our offices in Mississauga, Cambridge and London, Ontario.
Contact Nadeem Law Office to schedule a consultation regarding your LMIA Application.
info@nadeemlaw.com