LMIA for Employers

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What Is an LMIA and Why Is It Required?

A Labour Market Impact Assessment (LMIA) is a crucial step for most Canadian employers looking to hire foreign workers. It’s issued by Employment and Social Development Canada (ESDC) to confirm that no qualified Canadian citizen or permanent resident is available for the position.

At Northia Immigration Consultancy, we help employers navigate this process, ensuring applications meet all regulatory standards and support a successful Canada immigration application for the worker.

An LMIA is typically required when:

You're hiring a temporary foreign worker for a role not covered under an LMIA exemption.
The position is not filled through local recruitment efforts.
You want to provide proof to IRCC that hiring a foreign national will benefit the Canadian labor market.

What Business Owners Need to Know

Do You Need an LMIA? – Most Canadian employers hiring foreign workers require an LMIA unless the job falls under an LMIA-exempt category (e.g., certain international agreements, intra-company transfers).

Advertising & Recruitment – Before applying, employers must show proof of recruitment efforts, demonstrating that they actively tried to hire a Canadian but were unsuccessful.

Processing Times & Costs – LMIAs require a $1,000 application fee per worker and processing can take several weeks, depending on the job type and location.

Prevailing Wage Compliance – Employers must pay foreign workers at or above the median wage for the occupation in the region where they will work.

Work Permit Approval is Separate – An approved LMIA does not guarantee a work permit approval—foreign workers still need to meet Canada’s immigration eligibility criteria.

Employer Responsibilities – After hiring, employers must comply with Canadian labor laws, provide fair working conditions, and complete periodic reporting to maintain compliance.

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Recent LMIA Policy Updates (2024–2025)

Reduction in LMIA Validity Period

As of May 1, 2024, all Labour Market Impact Assessments (LMIAs) now have a maximum validity period of 6 months, regardless of the stream (high-wage, low-wage, or other categories).

This means that once an LMIA is approved, the foreign worker must submit their work permit application within 6 months of the LMIA issuance date. After this period, the LMIA expires and can no longer be used to support a work permit application.

This policy aims to ensure that labour market conditions assessed during the LMIA process remain current and relevant at the time of the work permit application.

Increased Wage Threshold for High-Wage Stream

Effective November 8, 2024, the wage offered to temporary foreign workers under the high-wage stream must be at least 20% higher than the provincial or territorial median hourly wage to qualify.

Stricter Measures for Low-Wage Positions

Several measures have been introduced to tighten the hiring of foreign workers in low-wage positions. As of September 26, 2024, LMIA applications for low-wage positions are no longer processed in regions with unemployment rates of 6% or higher, except for essential sectors like agriculture, food processing, construction, and healthcare. The proportion of low-wage temporary foreign workers that employers can hire has also been reduced from 20% to 10%, except for select priority sectors that are permitted a 20% cap. The maximum employment duration for low-wage positions has been reduced from two years to one year.

Employment Duration

Low-Wage Positions

The maximum employment duration has been reduced from 2 years to 1 year, effective September 26, 2024. This change applies to most low-wage LMIA streams, including dual-intent applications that support both temporary work permits and permanent residency.

Exemptions: Certain sectors, such as primary agriculture, seasonal positions (less than 270 days), and specific occupations in food manufacturing, construction, and healthcare, may be exempt from this reduction.

High-Wage Positions

The maximum employment duration remains up to 3 years, provided the employer can justify the duration based on reasonable employment needs.

How Northia Supports Employers

At Northia Immigration, we simplify every aspect of the LMIA process. From initial recruitment strategy to filing paperwork and ensuring full compliance with Canada immigration policies, our goal is to make the process smooth and successful.

Our Employer Services Include:

Determining whether your role requires an LMIA or is LMIA-exempt
Reviewing job offers and verifying prevailing wage compliance
Assisting with recruitment advertising and documentation
Preparing and submitting complete LMIA applications
Coordinating with foreign workers for timely work permit filing
Ensuring compliance with ongoing reporting and labor standards

Hiring foreign talent doesn’t need to be complicated. Partner with Northia Immigration Consultancy and let our team guide you through the LMIA and Canada immigration application process with clarity and confidence.

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Frequently Asked Questions

Can I change employers if I already have a closed LMIA-based work permit?

Yes, but your new employer must first obtain a new LMIA, and you must apply for a new work permit. You cannot begin working for the new employer until your new work permit is approved by IRCC.

What happens if the job offer falls through after the LMIA is approved but before I apply for a work permit?

If the job offer is withdrawn, the LMIA becomes unusable. It is employer-specific and cannot be transferred to another employer or job. You would need a new job offer and your new employer would need to apply for a separate LMIA.

Can my employer offer me a job title that doesn’t exactly match my duties to speed up LMIA approval?

No. Job titles and duties must accurately reflect your role and align with the appropriate NOC (National Occupation Classification). Misrepresentation can lead to application refusal or serious immigration consequences.

Does having an LMIA guarantee that my work permit or PR application will be approved?

No. While a positive LMIA supports your work permit or Express Entry profile, approval is not guaranteed. IRCC still assesses admissibility factors such as health, criminality, and whether you meet the criteria for the program you're applying under.

What happens if I’m laid off while on an LMIA-based work permit?

Being laid off may affect your legal right to work, since your work permit is tied to that specific job and employer. You must stop working unless you secure a new LMIA and work permit. However, you may remain in Canada while your current permit is valid and may apply to change your status or seek restoration, depending on your situation.

What if my employer is not following LMIA compliance regulations?

If your employer changes your job duties, reduces your wages, or violates working conditions set out in the LMIA, they may be in breach of compliance rules. You can report this to Service Canada or IRCC, and in serious cases, you may be eligible for a Vulnerable Worker Open Work Permit (VOWP) that allows you to legally leave the employer and work elsewhere.

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