What is the LMIA (and Do You Need One to Come to Canada?)
Summary of Key Points:
The Labour Market Impact Assessment (LMIA) determines whether a foreign worker is needed to fill a job that a Canadian citizen or permanent resident can’t fill. Many workers coming to Canada require an LMIA—dependent on the type of work permit and immigration stream through which the foreign worker is applying.
Canadian employers take the lead in applying for and obtaining an LMIA before a foreign worker can apply for a work permit. Employers must classify the job as high or low-wage, advertise the job on multiple platforms and submit an LMIA application. Once an application is approved, foreign workers can apply for a work permit through Immigration, Refugees and Citizenship Canada (IRCC).
There are some exemptions to needing an LMIA, based on reciprocity, the benefits to Canada or international agreements. Some examples include intra-company transfers, open work permits or charitable or religious work.
Many LMIA-related work permit applications require an Immigration Medical Exam (IME) and can be done by our team at Panel Physician. The IME includes a physical exam, chest X-ray and blood and urine tests. We can help streamline the application process by submitting all medical documentation promptly to the IRCC.
What is the LMIA (and Do You Need One to Come to Canada?)
Navigating the work permit process in Canada can be complex, especially when it comes to understanding the Labour Market Impact Assessment (LMIA). Whether you’re an employer hoping to hire a foreign worker or an individual seeking to work in Canada, it’s important to know when an LMIA is required, how to apply and which exceptions might apply to your situation.
We’ll break down everything you need to know about the LMIA, common exemptions and how to help streamline the process.
What is the Labour Market Impact Assessment (LMIA)?
The Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) that serves as proof that hiring a foreign worker is needed to fulfill a job and will not negatively impact the Canadian labour market. It’s the Canadian government’s way of ensuring that no qualified Canadian citizens or permanent residents are available to fill a job before it is offered to a foreign national.
A positive LMIA indicates that there is a need for a foreign worker to fill the job and that no Canadian worker is available to do it. A negative LMIA means the job should be filled by a Canadian citizen or permanent resident instead. The LMIA plays a central role in most employer-driven work permit applications under Canada’s Temporary Foreign Worker Program (TFWP).
Learn More: How Many Permanent Residents Will Canada Accept This Year?
Who Needs an LMIA?
Not all individuals coming to work in Canada require an LMIA, but many do. The LMIA requirement largely depends on the type of work permit and immigration stream through which the foreign worker is applying.
Visa Categories That Require an LMIA
Temporary Foreign Worker Program (TFWP): Most jobs under this program require a positive LMIA before a work permit can be issued.
Low-Wage and High-Wage Worker Streams: These streams classify jobs based on median provincial wages and both typically require LMIAs.
Caregivers Program: Employers hiring home support workers or childcare providers often need an LMIA.
Seasonal Agricultural Worker Program (SAWP) and Agri-Food Pilot: Require employer LMIA applications specific to agriculture and food production industries.
Learn More:Find Out If You Need a LMIA
LMIA Application Process
The LMIA process is employer-driven, meaning Canadian employers must take the lead in applying for and obtaining an LMIA before a foreign worker can apply for a work permit.
For Employers
Determine Job Classification
Classify the job as high-wage or low-wage based on the median hourly wage in the province/territory where the job is located.Recruitment Efforts
Employers must advertise the job on multiple platforms and prove they made efforts to hire Canadian citizens or permanent residents first.Submit LMIA Application
Complete the necessary forms (EMP5620 for low-wage or EMP5626 for high-wage positions) and submit them to ESDC, along with supporting documents and applicable processing fees (typically CAD $1,000 per position).Wait for Processing
LMIA processing times vary depending on the stream but can range from a few weeks to a couple of months.Receive LMIA Decision
If approved, the employer receives a positive LMIA, which the foreign worker can use to apply for a work permit.
For Foreign Workers
Once the LMIA is approved, a worker can apply for a work permit through Immigration, Refugees and Citizenship Canada (IRCC).
Required documents include the job offer letter, employment contract, copy of the LMIA and LMIA number.
Learn More: What is a TRV? Canada’s Temporary Resident Visa Explained
Common Exceptions
Canada offers several pathways that exempt employers from the LMIA process, mainly through the International Mobility Program (IMP). These exemptions are generally based on reciprocity, significant benefit to Canada or international agreements.
International Agreements: NAFTA/USMCA professionals, CETA and CPTPP provisions allow certain professionals and business people to work in Canada without an LMIA.
Intra-Company Transfers: Multinational companies can transfer certain employees to Canadian branches without obtaining an LMIA.
Post-Graduation Work Permits (PGWP): International students who graduate from eligible Canadian institutions can work without an LMIA.
Open Work Permits: Spouses of skilled workers and students, refugee claimants and working holiday participants may receive open work permits that don’t require an LMIA.
Charitable or Religious Work: Some workers coming for religious or non-profit work may also be LMIA-exempt.
These exceptions are subject to specific eligibility criteria, so it’s crucial to consult immigration resources or professionals for up-to-date information.
The Role of Panel Physician in the LMIA Process
In many LMIA-related work permit applications, Immigration Medical Exams (IMEs) are required. These exams are essential for ensuring public health and safety in Canada and are common for occupations in healthcare or childcare or jobs that involve working in schools, hospitals, or with vulnerable populations. This also applies to applicants staying in Canada for more than 6 months.
At Panel Physician, our doctors are authorized by IRCC to perform IMEs, which includes a physical exam, chest X-ray, and blood and urine tests. We’re familiar with the LMIA work permit process and can ensure medical documentation is completed efficiently and submitted correctly to the IRCC.
Learn More: Getting an Immigration Medical Exam in Scarborough: Who, When & Why
Start the Process By Booking Your IME Today
The LMIA process can be complex and time-sensitive, involving multiple steps, documentation, and coordination between employers, foreign workers, and government agencies. That’s why working with experienced professionals, like immigration consultants, lawyers, or trusted Panel Physicians, can make a significant difference. These experts understand the nuances of Canadian immigration rules and can guide both employers and workers through the process, increasing the chances of a successful outcome.
When you’re ready to schedule your IME, book your appointment here. We can help streamline your application and bring you one step closer to starting your work in Canada.
