Labour Market Impact Assessment (LMIA)

Employer Eligibility Criteria for LMIA Applications

Not all employers in Canada are automatically eligible to apply for a Labour Market Impact Assessment (LMIA). The Canadian government requires businesses to meet certain conditions to ensure that the process is fair, credible, and in alignment with national labour market priorities.

1. Active and Legitimate Business

To be eligible, the employer must operate an established and active business in Canada. This includes:

• Being registered or incorporated according to provincial or federal laws
• Having a physical location of operation
• Being actively engaged in producing goods or providing services

2. Demonstrated Need for a Foreign Worker

Employers must provide strong evidence that they were unable to find a suitable Canadian citizen or permanent resident for the job. This includes:

• Advertising the position across various platforms (including Job Bank)
• Clearly documenting recruitment efforts and outcomes
• Demonstrating that hiring a foreign worker is a last resort to address a genuine labour shortage

3. Good Track Record with Immigration and Employment Standards

Employers who have previously hired foreign workers must show a history of compliance with:

• Labour laws and employment standards
• Immigration rules (e.g., not misusing temporary foreign worker programs)
• Providing fair wages, safe working conditions, and appropriate support to employees

4. Financial Capability

The business must be financially capable of:

• Paying the employee’s wages as offered in the job contract
• Providing consistent employment throughout the duration of the job offer

This often includes submitting financial statements or tax documents with the LMIA application.

5. Willingness to Support the Worker

Eligible employers are also expected to:

• Assist the foreign worker with the work permit process
• Provide clear information about the job, wage, benefits, and working conditions
• Comply with follow-up requirements, including inspections if requested by Employment and Social Development Canada (ESDC)

Introduction to LMIA for New Work Permits

If you are a foreign worker currently outside Canada and wish to work in the country temporarily, obtaining a Labour Market Impact Assessment (LMIA) is often a crucial first step. The LMIA confirms that there is a genuine need for a foreign worker to fill the job position and that no Canadian citizen or permanent resident is available for the role.

Step 1: Employer Applies for LMIA

The Canadian employer must submit an LMIA application to Employment and Social Development Canada (ESDC). This application should demonstrate efforts to recruit locally and justify the necessity of hiring a foreign worker.

Step 2: Positive LMIA Decision

Once approved, ESDC issues a positive LMIA letter to the employer, confirming that the job offer has been assessed and meets all program requirements. This document is essential for the foreign worker’s work permit application.

Step 3: Work Permit Application Outside Canada

With the positive LMIA and a valid job offer, the worker can apply for a work permit at a Canadian visa office in their home country or the country where they legally reside. This involves submitting:

• The LMIA approval letter
• The job offer letter from the employer
• Proof of qualifications, work experience, and identity documents

Step 4: Work Permit Issuance and Entry to Canada

Once the work permit is approved, the foreign worker can travel to Canada and start employment as per the terms of the LMIA. It is important to comply with all conditions set out in the work permit, including the employer, job role, and duration of stay.

Important Considerations

• The LMIA process can take several weeks, so early application is recommended.
• Some occupations and circumstances may qualify for LMIA exemptions; always verify eligibility.
• Maintaining open communication between the employer and employee throughout the process ensures a smoother application.

BritishOXFORD Immigration is here to help both employers and foreign workers navigate the complexities of the LMIA process efficiently and with confidence.

Who Needs an LMIA to Extend a Work Permit?

Temporary foreign workers and some international graduates in Canada may need a new LMIA to extend their existing work permit, especially if they are transitioning into a new job role or employer. This ensures continued compliance with Canadian immigration laws and validates that their employment still aligns with labour market needs.

Common Scenarios Requiring LMIA-Based Extensions

• The worker’s current LMIA is expiring and they wish to continue in the same position.
• The worker is switching to a new employer who must apply for a fresh LMIA.
• The job description or responsibilities are significantly changing from the original role.

Steps for Obtaining an LMIA-Based Extension

1. Employer Application: The new or current employer submits an LMIA application to ESDC with updated job details.
2. Worker’s Application: After receiving a positive LMIA, the foreign worker can apply to IRCC for an extension of their work permit.
3. Status Maintenance: If the application is submitted before the current permit expires, the worker may stay in Canada under “maintained status” until a decision is made.

Tips for a Smooth Extension Process

• Start the LMIA application at least three to four months before the current permit expires.
• Ensure job duties, wages, and location remain consistent with LMIA requirements.
• Document employment history and performance for added support.

When Is an LMIA Not Needed for an Extension?

Not all extensions require a new LMIA. International graduates with Post-Graduation Work Permits (PGWPs), spouses of skilled workers, and workers under International Mobility Programs may be eligible for LMIA-exempt renewals.

At BritishOXFORD Immigration, we work closely with both employers and workers to ensure timely and accurate LMIA submissions and work permit renewals—giving our clients peace of mind and compliance assurance.

Understanding LMIA Exemptions

While many employers must obtain a Labour Market Impact Assessment (LMIA) to hire foreign workers, several categories are exempt from this requirement. These exemptions exist to support international agreements, Canadian interests, and certain reciprocal opportunities for global talent.

Common LMIA-Exempt Categories

• International Mobility Programs (IMP): This umbrella covers various streams that don't require an LMIA. It includes agreements like CUSMA (formerly NAFTA), intra-company transfers, and more.
• Post-Graduation Work Permits (PGWP): International students who graduate from eligible Canadian institutions can work without an LMIA under an open permit.
• Spouses of Skilled Workers or Students: Spouses of individuals holding skilled work permits or studying full-time at a designated institution may qualify for open work permits without an LMIA.
• Charitable and Religious Workers: Certain roles in nonprofit or faith-based organizations may be exempt due to the nature of their service.
• Significant Benefit to Canada: Work that contributes significantly to Canadian society (culturally, economically, or socially) may also be exempt.

How LMIA-Exempt Work Permits Are Processed

Employers using an LMIA exemption must still submit an offer of employment through the IRCC Employer Portal and pay the compliance fee. Workers then apply for a work permit using the unique exemption code that corresponds to their situation.

Benefits of LMIA-Exempt Hiring

• Faster processing timelines in many cases
• No need to advertise the position or justify local labour shortages
• Streamlined paperwork and lower upfront cost

BritishOXFORD Immigration helps both employers and workers navigate LMIA-exempt pathways with precision. Whether you're transferring talent within your company, hiring under CUSMA, or supporting a student’s spouse, we ensure your application aligns with current regulations and expectations.

Not sure if your job qualifies for an exemption? Speak with our immigration experts for tailored guidance.