LMIA-Based Work Permits: What Employers and Workers Should Know

If a foreign worker has a job offer in Canada, there is a good chance they will need a Labour Market Impact Assessment — commonly called an LMIA — before they can apply for a work permit. The LMIA process is often the longest and most demanding part of the entire journey, and misunderstanding it is one of the most common reasons applications stall.

This article explains what an LMIA is, how the employer obtains one, and what happens next when a worker is ready to apply for their permit. Both high-wage and low-wage streams are covered. Because processing times, fees, and program details change regularly, treat the specifics here as a starting framework and confirm current requirements on the official Employment and Social Development Canada (ESDC) website or with a licensed immigration professional.

What Is an LMIA?

An LMIA is an assessment conducted by Employment and Social Development Canada (ESDC) to determine whether hiring a foreign worker will have a neutral or positive effect on the Canadian labour market. In simple terms, ESDC wants to see that the employer genuinely tried to find a Canadian citizen or permanent resident first, and that hiring a foreign worker will not displace one.

A positive LMIA means ESDC has approved the employer to hire a foreign national for the specific position. The worker can then use that positive LMIA as the basis for a work permit application to Immigration, Refugees and Citizenship Canada (IRCC).

A negative LMIA means ESDC was not satisfied — often because the recruitment effort was insufficient, the wage was below the prevailing rate, or there were concerns about working conditions. A negative LMIA ends the process; the employer must address the deficiencies and reapply.

It is important to understand what an LMIA is not: it is not a work permit itself. The LMIA is an employer-side document. The worker still applies separately to IRCC for the actual work permit.

Who Needs an LMIA?

Most employer-specific (also called "closed") work permits require a positive LMIA. However, there are important exemptions under the Immigration and Refugee Protection Act (IRPA) and its regulations — including intra-company transferees, certain reciprocal exchange arrangements, significant benefit positions, and workers covered by international trade agreements such as CUSMA (formerly NAFTA). If you are unsure whether an LMIA exemption applies, legal advice at the outset can save months of unnecessary process.

The Employer's Side: Getting the LMIA

Step 1 — Determine the Wage and Stream

ESDC divides LMIA applications into two main streams based on how the offered wage compares to the provincial median hourly wage:

• High-Wage Stream: the offered wage is at or above the provincial median for the occupation.
• Low-Wage Stream: the offered wage is below the provincial median.

The stream determines advertising requirements, cap limits on the proportion of low-wage temporary foreign workers in a workplace, and other conditions. Employers should check the current median wage rates for Ontario on the ESDC website before filing, as these figures are updated periodically.

Step 2 — Conduct Genuine Recruitment

This is where many LMIA applications succeed or fail. ESDC requires employers to demonstrate a genuine and sustained effort to recruit Canadians and permanent residents before turning to a foreign worker.

For most positions, employers must advertise on the Job Bank (Canada's national job board) and use at least two other recruitment methods targeted at underrepresented groups. Advertising must run for a minimum period — confirm the current requirement on Canada.ca — and must be active at the time the LMIA application is submitted.

Employers must keep records of every applicant who responded, why they were not hired, and how the job was advertised. ESDC may ask for this documentation during review or after the fact.

Step 3 — Submit the Application to ESDC

The LMIA application itself asks for:

• Details about the employer's business (registration, financial health, compliance history)
• A detailed job offer including the wage, benefits, and working conditions
• Evidence that wages and conditions meet or exceed provincial employment standards
• Proof of all recruitment activities and results
• The application fee (confirm the current amount on Canada.ca — fees are set by regulation and subject to change)

ESDC reviews the application and may ask follow-up questions. Processing times vary by occupation, region, and ESDC workload — do not rely on historical averages when planning timelines.

Transition Plans (High-Wage Stream)

Employers using the High-Wage Stream are typically required to submit a transition plan explaining how they will reduce their reliance on temporary foreign workers over time — for example, by training existing employees or recruiting from domestic labour pools. This plan becomes part of the LMIA and can be audited later.

The Worker's Side: Applying for the Work Permit

Once the employer receives a positive LMIA, the worker can apply for a closed (employer-specific) work permit through IRCC. The application will generally require:

• A copy of the positive LMIA and the LMIA number
• A signed job offer from the employer
• A valid passport and identity documents
• Evidence of qualifications (credentials, work experience letters, diplomas)
• Biometrics (if not already on file)
• The work permit application fee (confirm the current amount on IRCC's website)

Workers applying from outside Canada typically apply at a Canadian consulate or visa application centre. Workers already in Canada may be able to apply to change or extend their status from within Canada in certain circumstances — but this is fact-specific and should be reviewed carefully.

The resulting work permit is employer-specific: it names the employer, the job title, the location, and the duration. Working for a different employer without authorization is a serious breach of status.

Common Pitfalls

• Advertising that does not meet ESDC requirements. Job Bank postings that are too brief, lack required details, or were taken down too early are a frequent cause of refusals.
• Wages below the prevailing rate. ESDC cross-checks offered wages against published median wages. Underpaying is not just an LMIA problem — it can also create employment standards liability.
• Gaps between the LMIA and the work permit. The positive LMIA is valid for a limited period. Workers must apply for their work permit within that window.
• Assuming the LMIA is a pathway to permanent residence. An LMIA-backed work permit is temporary. Many workers eventually transition through Express Entry or the Ontario Immigrant Nominee Program (OINP), but that requires a separate application strategy.

Frequently asked questions