A Labour Market Impact Assessment (LMIA) is the federal government’s confirmation that a Canadian employer may hire a foreign worker for a particular job because no Canadian or permanent resident is available to fill it. Law Wise advises employers and workers on LMIA applications and the work permits that follow, from its Mississauga office, serving the entire GTA and Ontario.
What an LMIA is and who needs one
Most employer-specific work permits under the Temporary Foreign Worker Program require a positive LMIA first. The employer, not the worker, applies to Employment and Social Development Canada (ESDC) through Service Canada. ESDC decides whether the job offer is genuine, whether the wage and conditions match what Canadians are paid for the same work in the same place, and whether hiring a foreign worker would have a neutral or positive effect on the Canadian labour market. A positive LMIA is then used by the worker to apply to Immigration, Refugees and Citizenship Canada (IRCC) for the work permit.
Many jobs do not need an LMIA at all. Work permits under the International Mobility Program, such as intra-company transfers, permits under free-trade agreements, post-graduation work permits and spousal open work permits, are LMIA-exempt. The first question is always whether the job is exempt; our work permits page covers both programs.
High-wage and low-wage streams
An LMIA application is assessed under the high-wage stream or the low-wage stream, depending on whether the wage offered is at or above the threshold set for the province. The two streams carry different conditions. The low-wage stream has a cap on the share of an employer’s workforce at a work location that can be temporary foreign workers, requires the employer to cover round-trip transportation and to make sure suitable, affordable housing is available, and is subject to a “refusal to process” rule: ESDC will not process low-wage applications for jobs in census metropolitan areas where the unemployment rate is at or above a set level, with exceptions for sectors such as health care, construction and food processing. The high-wage stream has no cap but requires a transition plan showing how the employer will reduce its reliance on foreign workers.
These conditions have changed several times since 2024, and the wage thresholds and the list of affected cities are updated through the year. Whether a job in Mississauga, Brampton or Toronto can be processed in the low-wage stream on a given day is a question we check against the current ESDC notice before any application is started.
What the employer has to show
- A real business and a real job. ESDC checks that the business exists, is actively operating and can pay the wage; since late 2024 a letter from an accountant or lawyer is no longer accepted as proof.
- Recruitment. The employer must advertise the job to Canadians and permanent residents, normally on the Job Bank and at least two other sources for a minimum period, and explain why the applicants were not hired.
- Wage. At least the prevailing wage for that occupation and region, reviewed every year while the worker is employed.
- Conditions. Private health insurance until provincial coverage starts, a written employment contract matching the LMIA, no recruitment fees charged to the worker, and a workplace free of abuse.
- The processing fee for each position, which cannot be recovered from the worker.
After the LMIA: the employer’s compliance duties
A positive LMIA is the start of the employer’s obligations, not the end. Under the Immigration and Refugee Protection Regulations, employers of foreign workers can be inspected for up to six years and must keep the wage, hours, duties and conditions the same as those in the LMIA and the offer of employment. An employer found non-compliant can be fined, banned from hiring foreign workers for a period, and listed publicly. Changing a worker’s job, pay or location without the right steps is the most common way employers get into difficulty.
Based on Part 11, Division 3 of the Immigration and Refugee Protection Regulations, SOR/2002-227, and ESDC program requirements as published on 24 October 2026. Program conditions change often; verify the current requirements before relying on them.
LMIAs that support permanent residence
Some LMIAs are requested mainly to support a worker’s permanent residence application rather than a temporary hire. A valid job offer supported by an LMIA can count toward a Express Entry profile or a provincial nomination, although the points given for a job offer have changed and should be checked against the current rules. “Dual intent” applications, where the employer asks ESDC to assess the position for both a work permit and permanent residence, are handled under their own requirements.
Common reasons LMIAs are refused
- advertising that ran for too short a time, in the wrong places, or with a wage below the prevailing rate;
- a business that cannot show it has the revenue to pay the wage, or whose activities do not match the job;
- a job description written for one person rather than for a position;
- Canadian applicants screened out for reasons that do not hold up;
- a low-wage application for a city on the refusal-to-process list, or an employer already at the low-wage cap.
A refused LMIA cannot be appealed. The employer can apply again after fixing the problem, which is why it is cheaper to get the recruitment and the business documents right the first time.
How Law Wise helps with LMIAs
- telling employers at the outset whether the job needs an LMIA, which stream applies, and whether the refusal-to-process rule or the cap blocks it;
- planning recruitment that meets ESDC’s requirements before the advertising starts;
- preparing the LMIA application, business documents, transition plan and offer of employment;
- preparing the worker’s work permit application once the LMIA is approved, including family members;
- advising on compliance, inspections and what to do when a job or wage has to change;
- advising workers who have been offered an “LMIA job” on whether the offer is genuine and what they are being asked to pay for, which should be nothing.
Your file is handled by a Law Wise lawyer licensed by the Law Society of Ontario. Service is available in English, Urdu, Punjabi and Hindi, and, if you retain the firm, fees are explained and confirmed in writing before work starts.
Common questions about LMIAs
Who applies for the LMIA, the employer or the worker?
The employer. The worker applies to IRCC for the work permit afterwards, using the positive LMIA and the job offer.
Can a worker pay the LMIA fee or pay for the job?
No. The employer must pay the processing fee and cannot recover it, or any recruitment fee, from the worker. Being asked to pay for an LMIA job is a warning sign and can lead to penalties for the employer.
How long does an LMIA take?
It varies by stream and by month. ESDC publishes current processing times, and we check them for each application; the time spent on recruitment before filing is usually longer than the processing itself.
How long is a positive LMIA valid?
A positive LMIA has an expiry date, and the worker must apply for the work permit before it. The length of employment ESDC will approve also depends on the stream and has been shortened for low-wage positions. We confirm both dates when the decision arrives.
Can a refused LMIA be appealed?
No. There is no appeal, but a new application can be filed once the reason for refusal has been addressed.
Speak with an immigration lawyer about hiring a foreign worker
Your first consultation is free for 15 minutes, by appointment. Call us or send a message, and tell us the job title, the wage and where the work will be done.
This page is general legal information about federal law and program requirements, current as of 24 October 2026. Temporary Foreign Worker Program conditions, wage thresholds and processing times change often; confirm them with ESDC and IRCC before acting. It is not legal advice and does not create a lawyer-client relationship.