If you are a Canadian employer hiring someone from another country, you may need to first apply for an LMIA (Labor Market Impact Assessment). This article aims to help you understand everything about LMIA. We explain how the process works, what you need to do, the paperwork, how much it costs, when something will happen, and what rules you need to follow. In addition, we will give you some tips to make your LMIA application successful and answer some common questions that Canadian employers often ask.
What is LMIA in Canada?
The LMIA is an Employment and Social Development Canada (ESDC) document that a Canadian employer must obtain before hiring a foreign worker. The ESDC will assess how hiring a foreign worker could impact the labor market in Canada. If the ESDC determines that the impact on the Canadian market is positive or neutral, the ESDC will grant your company a Positive Foreign Worker Employment Decision (LMIA).
The LMIA serves as a tool for the government to ensure that bringing in a foreign worker does not impact Canadian workers.
See if you can hire your foreign employee without an LMIA through one of the international mobility programs.
Learn everything about Canada‘s technical immigration programs.
How to get an LMIA work permit: step by step
Follow the application form below to obtain an LMIA work permit for your foreign worker:
- Step 1: Determine the correct NOC for the profession.
- Step 2: Determine the salary amount for the profession.
- Step 3: Prepare a job advertisement according to the requirements of the program.
- Step 4: Advertise the position for at least 30 days.
- Step 5: Interview local candidates
- Step 6: Collect and deliver documents for the LMIA application.
- Step 7: Pay the LMIA fees.
- Step 8: Attend an interview with an ESDC official.
- Step 9: Support your foreign employee’s application for a work permit.
LMIA processing times in 2024
In general, processing times can vary from several weeks to several months. ESDC updates processing times regularly to reflect current conditions. Average processing times for February 2024:
- Mondiale talentstroom: 1-2 weeks
- Agriculture course: 1-3 weeks
- Seasonal Agricultural Worker Program: 1-2 weeks
- Stream of permanent residents: It’s 3–4.
- Stream of high salaries: It’s 2-3
- Low salary: It’s 2-3
The costs of your LMIA application
When considering hiring a foreign worker through an LMIA application, you should budget between $5,500 and $8,000 per worker, as there are several costs involved:
- Advertising costs: If you advertise on multiple paid platforms (which is recommended), your expected budget should be around $500–$600.
- LMIA fee: The state application fee for LMIA is $1,000 per employee.
- Work permit costs: If you pay an application fee for your employee’s work permit, you should be prepared to pay an additional $480 to $550 to cover your employee’s fees, biometric collection costs, and the cost of medical exams.
- Legal costs: Depending on the complexity of the case and the legal representation required, fees can range from $3,000 to $7,000 per employee.
Please note that this estimate does not include additional costs that the employee may need based on the job offer and salary, such as the flight back to Canada.
It is very important that employers understand that they are legally required to cover all costs associated with applying for an LMIA. Canadian law strictly prohibits employers from passing on these costs directly or indirectly to foreign workers. This prohibition includes recruitment, job placement, first aid training, and all other related costs. Furthermore, ensure that employers and external employees do not charge foreign employees under any pretext when recruiting foreign workers. Violation of this rule may result in serious consequences, including payment of a fee to the employee, disqualification from the foreign worker program, severe penalties, and even criminal prosecution.
LMIA indication approved in 2024
Based on our experience, established companies have an average success rate of 95% for LMIA applications. In contrast, companies that have been in business for less than twelve months typically have a success rate of 65% to 85%. Several factors can affect the success of your LMIA application, with incorrect or insufficient advertising often leading to rejection. In addition, failure by the employer to meet salary or other employment conditions often leads to rejection of the application. By seeking the advice of an experienced corporate immigration attorney regarding your LMIA application, you can significantly increase your chances of approval.
Learn more about the intra-company transfer program.
How to identify NOC for your LMIA application
The NOC, also known as the National Occupational Classification, is Canada’s way of organizing the different jobs that Canadians do in the labor market. It is updated every five years in partnership with Statistics Canada to provide a standardized understanding of the labor market.
The final version of the NOC was published in 2024. Employers interested in hiring foreign talent should start by selecting the right NOC profession. The NOC rating plays an important role in determining the prevailing wage and influencing ESDC’s assessment of local employment opportunities, which ultimately affects the outcome of your LMIA application. In addition, IRCC will use the NOC classification to understand the employment requirements for your position and decide whether to approve your application as a temporary foreign worker. Follow these steps to determine the correct NOC for your position:
- Search for NOC: Visits Night 2021 and search for your profession by name.
- Consider multiple NOC options: In our experience, in most cases, you will find multiple NOC occupational classifications to consider for each position. Given the wide range of job titles in the 2021 NOC and their significant overlap, choosing the right NOC requires careful review of the NOC’s key statements, listed job duties, and employment requirements. Do not rely solely on the official job title to determine the most appropriate NOC. It is very important that your job tasks and job requirements match the tasks and job requirements stated in one or more relevant NOCs.
- Assess local market conditions: Your choice of NOC should take into account, among other things, the general labor market situation for each NOC occupational classification in a given geographic region. You research the labor market situation for each possible NOC profession (job bank). Information about the labor market is a good starting point, and we hope to arrive at a professional NOC classification that accurately matches the product range and where local talent is lacking.
- Please confirm the minimum salary for the position: In addition to assessing local labor market conditions, you should also ensure that the prevailing wage for your chosen NOC occupational classification is within your budget (see Determining the prevailing wage below). Many employers set the wages of foreign workers based on the earnings of others in their company or on the applicant’s consent. However, to get a positive LMIA, you must offer the foreign worker the prevailing wage. This can sometimes mean paying your external talent more than your existing employees.
- Check whether your applicant meets the NOC requirements: Finally, you must ensure that the proposed candidate meets the employment conditions for the proposed NOC occupational classification. Although the ESDC does not typically assess a foreign worker’s eligibility for work, the CBSA or the visa officer who ultimately issues the work permit will certainly make this assessment. There is nothing more frustrating than having your foreign worker’s application to work in Canada rejected after struggling to get a positive LMIA.
How to put together a job advertisement for your LMIA application
Preparing an effective job advertisement for your LMIA application is essential to the success of your LMIA application. Many Canadian employers make the mistake of creating jobs based solely on employment needs, but it is important to follow the specific requirements of the ESDC. Failure to meet program requirements may result in your application being rejected due to “inadequate recruitment efforts.” In short, creating an effective vacancy for LMIA purposes requires strategic thinking and aligning your company’s recruitment needs with ESDC guidelines and IRCC requirements.
Your LMIA application must include the following information:
- Company name and business address
- position
- Duties of the position (if more than one position is advertised, list the duties for each position). Do not simply copy and paste the tasks from the NOC occupational classification.
- Employment conditions (e.g., permanent, project-based)
- Language requirements
- Salary details (including any pay increases, performance awards, or bonuses):
- A salary range can be specified, but the minimum salary must comply with existing standards.
- Benefits offered (if applicable)
- Place(s) of work (local area, town, or city)
- Number of positions
- Employer contact details: e-mail address, fax number, or postal address
- Skills Requirements (including education and work experience)
How to submit your LMIA application
To apply for an LMIA, employers must collect and submit various documents to the ESDC, which can now be completed online through the ESDC Employer Portal. The specific documents required vary by LMIA stream (e.g., high salary, low salary, agriculture, trustee, etc.), but generally include the following:
- LMIA application form: a completed and signed application form for the specific LMIA major you are applying for.
- Business legal documents: documents that prove the legality and legal status of your business, such as business licenses, incorporation documents, and tax documents.
- Letter with a job offer: Letter describing a job offer to a foreign worker, stating job duties, salary, benefits, and other related details.
- Recruitment documents: evidence of job advertisements on various platforms (e.g., Job Bank, other job boards, print media) and your recruitment report showing the number of applicants and the reasons why you did not hire them (download a sample here).
- Transition plan: a plan describing how the employer plans to reduce dependence on temporary foreign workers for high-wage jobs in the future.
- Handling fee: Most types of LMIA require $1,000 per employee.
- Union Council (if applicable): If the work is unionized, proof of consultation with the union.
Additional documents for specific flows: Depending on the LMIA flow, additional documents may be required. For example, the agricultural and low-wage LMIA streams have special requirements regarding housing and transportation plans for workers.
Employer requirements for LMIA
LMIA requirements are broad and can be difficult to recognize. If you are a Canadian employer and want to hire foreign nationals who are not authorized to work in Canada, you must obtain approval from the LMIA. Below are the three main requirements:
- The first request is for all employers to demonstrate that they are seeking qualified domestic workers who are Canadian citizens or permanent residents. You have no choice but to hire foreign workers because you cannot find the right talent.
- Of course, it depends on whether you plan to hire a high- or low-salary employee. If you plan to pay your foreign workers more than the provincial average wage, they will be classified as having a having a high wage for LMIA purposes. If they are paid less than the average wage in your country, they are classified as low-paid workers.
- The third request includes monitoring compliance and reporting on the progress of the transition plan. This requirement only applies to employers who have already hired foreign workers under the LMIA.