Canada LMIA Explained: How Employers Hire Temporary Foreign Workers
Most Canadian employers need a Labour Market Impact Assessment (LMIA) to hire a foreign worker. Here are the $1,000 fee, advertising rules, high-wage vs low-wage streams and what workers should know.
CanadaIn brief
- An LMIA shows that a Canadian employer could not find a Canadian or permanent resident for the job.
- The employer pays a $1,000 fee per position, and it can never be recovered from the worker.
- Employers must advertise on Job Bank and through at least two other methods before applying.
- Low-wage LMIAs are not processed in cities with unemployment of 6% or more, and low-wage foreign workers are capped at 10% of a workplace.
| Country | Canada |
|---|---|
| Organization | Employment and Social Development Canada (ESDC) |
| Official source | ESDC – Program requirements for high-wage and low-wage positions ✓ canada.ca |
Many Gulf-based workers are offered "LMIA jobs" in Canada. To understand those offers, and to spot fake ones, it helps to know how the Temporary Foreign Worker Program works from the employer's side.
What is an LMIA?
A Labour Market Impact Assessment (LMIA) is a document a Canadian employer gets from Employment and Social Development Canada (ESDC) before hiring a foreign worker. A positive LMIA shows the job needs a foreign worker because no Canadian or permanent resident was available.
With a positive LMIA and a job offer, the worker then applies to Immigration, Refugees and Citizenship Canada (IRCC) for a work permit.
The fee: $1,000, paid by the employer
- The LMIA processing fee is $1,000 per position.
- The employer must pay it. It can never be charged to or recovered from the worker.
- It is not refunded if the application is withdrawn or the LMIA is negative.
If anyone asks you to pay for an "LMIA job", walk away. That is not allowed and is a common scam.
Employers must advertise first
Before applying, employers must try to hire locally:
| Requirement | High-wage jobs | Low-wage jobs |
|---|---|---|
| Recruitment activities | At least 3 | At least 3 |
| Job Bank advert | Required | Required |
| Other methods | At least 2, one national | At least 2, one national |
| How long the advert runs | 4 weeks in a row, within the 3 months before applying | 8 weeks in a row, within the 3 months before applying |
Whether a job is high-wage or low-wage depends on whether the offered wage is at or above the provincial or territorial wage threshold.
Extra rules for low-wage jobs
- Cap: low-wage foreign workers can be at most 10% of the staff at a work location, or 20% in some sectors such as construction, food manufacturing, hospitals and nursing homes.
- High-unemployment cities: since 26 September 2024, low-wage LMIAs are not processed in cities with an unemployment rate of 6% or more.
- Transport: the employer pays the worker's round-trip travel.
- Housing: must be suitable and affordable, costing less than 30% of the worker's before-tax income.
- Health insurance: the employer pays for private emergency cover until provincial health coverage starts.
What workers are entitled to
- Wages at least equal to the prevailing wage for the job.
- A signed employment agreement on or before the first day of work, matching the job offer.
- Full-time work, meaning at least 30 hours a week.
- Workplace safety insurance at no cost to the worker.
High-wage jobs: the transition plan
For high-wage jobs, employers must also submit a transition plan showing how they will recruit, train and retain Canadians and reduce reliance on foreign workers.
Tips for job seekers
- Never pay for an LMIA or a job offer.
- Check that the employer is real. Look up the company and its official contact details yourself.
- Read the offer carefully. It should state the job title, NOC code, wage, hours and duties.
Frequently asked questions
What is an LMIA in Canada?
A Labour Market Impact Assessment is a document an employer gets from Employment and Social Development Canada before hiring a foreign worker. A positive LMIA shows there is a need for the worker and no Canadian was available.
How much does an LMIA cost and who pays?
The processing fee is $1,000 per position. The employer must pay it and cannot recover it from the worker. It is not refunded if the LMIA is negative.
Should I pay for an LMIA job offer?
No. Charging a worker for the LMIA fee is not allowed. Offers that ask you to pay for an LMIA are a common scam.
What is the difference between high-wage and low-wage LMIA?
It depends on whether the wage is at or above the provincial or territorial wage threshold. Low-wage jobs have extra rules: a 10% cap on low-wage foreign workers per workplace, paid transport, affordable housing and no processing in high-unemployment cities.
Apply only through the official source.
Open official notice →TheJobSeek never charges for jobs and is not a recruitment agency. If anyone asks you to pay for a job offer or visa in the name of this article, it is a scam.
