Business Immigration

A Labour Market Impact Assessment (LMIA) is an application that an employer in Canada may need to make to hire a foreign worker through Canada’s Temporary Foreign Worker Program (TFWP). A positive LMIA indicates that there is no Canadian citizen or permanent resident that is available to do the job, and therefore allows a Canadian employer to hire a foreign worker instead. The TFWP program is administered by Employment and Social Development Canada (ESDC).

There are several different types of LMIA’s that can be applied for depending on the position and situation:

• High and Low Wage Stream
• Express Entry
• Dual Intent
• Global Talent Stream
• Academics
• Agriculture
• Caregivers

There are normally recruitment activities, such as posting advertisements for the job position for a certain length of time, that are necessary prior to applying for an LMIA. This is done in order to prove that the employer tried to hire a Canadian citizen or permanent resident for the position. There are some exemptions to the recruitment requirement under specialized LMIA programs such as the Global Talent Stream, which allows expedited processing of LMIA’s for certain in demand professions, however, documents such as a Labour Market Benefits Plan are required.

When an employer receives an LMIA and the foreign worker then uses the LMIA to apply for a work permit, the work permit is considered employer specific. Please see our section “Work in Canada” for more information on work permits.

Canada’s International Mobility Program (IMP) allows an employer to hire a temporary worker without a Labour Market Impact Assessment (LMIA). An LMIA is an application that an employer in Canada may need make to hire a foreign worker through Canada’s Temporary Foreign Worker Program (TFWP). A positive LMIA indicates that there is no Canadian citizen or permanent resident that is available to do the job, and therefore allows a Canadian employer to hire a foreign worker instead.

In cases where an LMIA is not required (Please see our “Work in Canada” section for more information on LMIA Exempt Work Permits) and the work permit is employer specific, an employer will still be required to submit an Offer of Employment through the Employer Portal.

The Employer Portal is a system through which a company can submit details about their offer of employment to Immigration, Refugees and Citizenship Canada (IRCC) and pay the $230 employer compliance fee.

There are compliance obligations for employers under both Canada’s International Mobility Program (IMP) and Temporary Foreign Worker Program (TFWP), which are the two primary programs used to hire foreign workers in Canada.

Employer compliance obligations are similar under both programs and include:

• Meeting the requirements and terms of the LMIA or Offer of Employment;
• Being actively engaged in the business in respect of which the offer of employment was made (except in the case of a live-in care-giver);
• Meeting the requirements of any applicable federal or provincial legislation, including recruitment of employees;
• Allowing employees to meet the requirements of federal or provincial legislation in relation to the COVID-19 crisis (such as obligations under the Quarantine Act);
• Providing the employee with employment in the same occupation and with wages and working conditions that are substantially the same as (but not less favourable than) those set out in the offer of employment;
• Making sure the workplace is free of abuse; and
• Keeping all relevant records for 6 years from the date the work permit for the employee is issued

Inspections may be conducted for those employers that participate in either the IMP or TFWP programs. There are also significant penalties for non-compliance.

Canada’s Start-up Visa Program is targeted to immigrant entrepreneurs with the potential to build a business in Canada. This program leads to permanent residency in Canada and allows the entrepreneur to obtain a work permit while their application is processing.

To be eligible for the Start-up Visa Program, a person must:

• Get a letter of support from a designated organization– these are designated organizations that have been approved to invest in or support possible start-ups;

• Have a qualifying business– there are ownership requirements that must be met at the time a potential applicant receives a commitment from a designated organization. At the time the person receives permanent residence, they must also be providing active and ongoing management of the business from in Canada, the company must be Canadian incorporated with an essential part of the operations happening in Canada;

• Meet certain language requirements; and

• Bring enough money to settle in Canada

To note, individual provinces and territories also have their own programs that support entrepreneurs. There are also LMIA exempt work permits available to entrepreneurs under Canada’s International Mobility Program (IMP). Please see our sections “Economic Permanent Resident Applications” and “Work in Canada” for further information.