Guide to LMIA

What is a Labour Market Impact Assessment or LMIA?

Labour Market Impact Assessment (LMIA), formerly known as a Labour Market Opinion (LMO) is a document issued from Employment and Social Development Canada (ESDC)/Service Canada that gives the employer permission to hire a temporary foreign worker. It shows that there is a need for a foreign worker to fill the job, and no Canadian worker is available to do the job.

How do I apply for an LMIA? 

 To apply for an LMIA, employers must complete the appropriate application forms and submit them to Employment and Social Development Canada (ESDC)/Service Canada. The application process requires providing detailed information about the job position, recruitment efforts, and the employer’s ability to meet the terms and conditions of employment.

What is the cost of LMIA?

Government processing fee for LMIA application is $1000 CAD per position. However, there are exceptions where an employer/company is not required to pay this processing fee. 

Exceptions

• LMIA to support permanent residency application. 
• LMIA for primary agriculture stream and positions under the National Occupational Classification (NOC) codes 80020, 80021, 82031, 84120, 85100, 85101 and 85103.
• LMIA to hire a foreign caregiver to provide home care for individuals requiring assistance with medical needs. 
• Families or individuals with a gross annual income of $150,000 or less seeking to hire a foreign caregiver to provide childcare in their home to a child under 13 years of age, also qualify for the processing fee exemption.

How many LMIA’s can an employer get?

It depends on several factors and situations. Employer can apply for many LMIA’s indeed they can demonstrate that there is a genuine need for their business.  For lower skilled positions, there is a CAP on the number of foreign workers that any one business can employ and there may be certain restrictions in place due to regional unemployment levels.

How difficult is it to get a positive LMIA?

The LMIA process serves as proof that no Canadian citizen and/or permanent resident is available, willing, and able to fill a specific position in Canada. The process is difficult, and onus is on the employer/company to demonstrate that there is a genuine labour shortage. However, there are sectors where Canadian workers are not available to fill the labour shortage, and a foreign worker is the only option.  

Can LMIA applications be refused? 

Yes, LMIA applications can be refused if the Employment and Social Development Canada (ESDC)/Service Canada determines that the employer has not met the requirements or provided sufficient evidence of labor market need and efforts to recruit Canadians or permanent residents.

Can I get an LMIA for a part time position?

No! The job must be for a full-time (at least 30 hours/week).

What happens if foreign worker does not want to work or employer wants to terminate the employment?

If you decide after the foreign worker starts to work for your company that he/she is not a good fit, you can terminate their employment according to the provincial/federal labour laws and employment contract (if any). Make sure you notify Service Canada that foreign worker is no longer working with you. If you decide that you can no longer offer the position before the foreign worker starts to work for your business, you need to notify both the worker and Service Canada as soon as possible. Cancelling a job offer can have serious/negative immigration consequences for the foreign worker, so it is a decision that should not be taken lightly.

What should I do if provincial minimum wages changes after getting positive LMIA?

Provincial Labour standards always override the LMIA approval. If the minimum provincial wage is now higher than the LMIA approved wage rate, you need to adjust the worker’s wage rate to match the current provincial minimum wage.

Can I promote foreign worker who is already working with the company on an LMIA based work permit?

Positive LMIA and the work permit specify the name of the employer, the position, and the location of work. None of these criteria can change unless a new LMIA and a new work permit is first obtained. The exception is that the name of the employer can change if the business is sold and the worker remains in the same position and same location.

If you want to give your foreign worker a promotion, you first need to go through the LMIA process in order to demonstrate a labour shortage for the new position, obtain an approved LMIA, and then have the foreign worker obtain a new work permit for the new position. 

Can I give a raise or bonus to foreign worker who is already working on an LMIA based work permit?

Wage/Salary and working hours are specified in a positive LMIA. Increase in wages/salary (once the foreign worker has started his/job) can have issues/problems during the compliance audit. If employer had advertised a higher wage/salary in the first place, they may have had Canadians or Permanent Residents who were interested in the position, and then you would not have required to hire a temporary foreign worker.

However, an employer can increase salary/wages if the prevailing wage rate changes during the employment. The prevailing wage rate is the government acceptable wage rate for each position and location. If a scheduled pay increase is part of your business, you may specify in LMIA application in order to give yourself the option to provide the same pay raises to a foreign worker that you provide to your Canadian employees. 

When can I apply for an LMIA?

You can submit LMIA application up to six months prior to the expected job start date.

How can IMC Immigration help in LMIA applications?

Hiring foreign workers through the Temporary Foreign Worker Program (TFWP) can be a strategic solution for Canadian employers facing labour shortages—but the LMIA process is complex, time-sensitive, and demands strict regulatory compliance.

At IMC Immigration, we guide employers through every step of the LMIA process. From drafting compliant job advertisements and assisting in recruitment efforts to assembling the required documentation and submitting the LMIA application, we ensure you meet all government requirements. We also advise on stream selection—whether it’s High-Wage, Low-Wage, Global Talent Stream, Agricultural, Caregiver, or Owner Operator—and help you navigate provincial-specific rules, such as employer registration and wage standards.

Our experienced team increases your chances of receiving a positive LMIA by helping you build a strong case for your labour market need. Whether you’re hiring one worker or many, our goal is to simplify the process, minimize risk, and help you secure the right talent for your business.

Let IMC Immigration be your trusted partner in bringing skilled, reliable foreign workers to your team.