The Labour Market Impact Assessment (LMIA) work permit is Canada’s primary employer-driven pathway for bringing foreign workers into positions that Canadians or permanent residents cannot readily fill. Unlike trade-agreement or reciprocal-employment exemptions, the LMIA route involves a mandatory review by Employment and Social Development Canada (ESDC) — also known as Service Canada — before the foreign worker can apply to IRCC for the actual work permit. This two-stage structure means the process has distinct employer-side and worker-side timelines and obligations.

Understanding the mechanics of the LMIA process is critical because a procedural error on either side can delay or sink an application. Employers must advertise positions, document recruitment efforts, demonstrate that no qualified Canadian applied, and pay the $1,000 LMIA fee per position (with some agricultural and caregiver exemptions). Workers then apply to IRCC for an employer-specific (closed) work permit once a positive LMIA decision has been issued. The work permit is tied to the approved employer, position, and location — any change requires a new application.

Eligibility Requirements

• Employer must apply to Service Canada (ESDC) for a positive Labour Market Impact Assessment
• LMIA confirms no qualified Canadian worker is available for the position
• Two main streams: High-Wage (at or above median provincial wage) and Low-Wage (below median)
• Employer pays $1,000 fee per position; exemptions for agriculture, caregivers, and some other categories
• Once positive LMIA received, foreign worker applies for employer-specific work permit to IRCC
• Global Talent Stream (GTS): expedited 2-week LMIA for tech and specialized workers

What an LMIA Actually Decides

An LMIA is not a work permit — it is a decision letter from Service Canada confirming that hiring a foreign worker for a specific job will have a neutral or positive impact on the Canadian labour market. A positive LMIA means ESDC is satisfied that: the employer genuinely tried to hire a Canadian; the wage and working conditions meet provincial minimums; and bringing in a foreign worker will not undercut Canadian wages or displace Canadian workers.

A neutral LMIA is also considered positive for this purpose. A negative LMIA, by contrast, means the employer cannot proceed — the worker cannot apply for a work permit based on that job offer. ESDC can also issue an LMIA with conditions or refuse based on employer compliance history.

Once a positive LMIA is in hand, its validity is typically six months. The foreign worker must submit the work permit application to IRCC within that window, attaching the positive LMIA letter as a core document.

LMIA Streams at a Glance

Service Canada manages several LMIA streams under the Temporary Foreign Worker Program (TFWP), each with different processing times and conditions:

• High-Wage Stream — Wages at or above provincial/territorial median; ~60 business days; transition plan required
• Low-Wage Stream — Wages below median; ~48 business days; 10% workforce cap; housing and transport obligations
• Global Talent Stream (GTS) — Expedited 10–12 business days for specialized tech/research roles; Labour Market Benefits Plan required
• Agricultural Stream — Primary agriculture positions; ~15 business days; LMIA fee waived
• Seasonal Agricultural Worker Program (SAWP) — Bilateral agreement workers from Mexico and Caribbean; ~10 business days; standardised contracts
• Caregiver Stream — In-home child, senior, or medical care; LMIA fee waived for eligible employers

The correct stream must be selected before the employer applies. Errors in stream selection — particularly misclassifying a wage as high-wage when it falls below the median — are among the most common grounds for LMIA refusal.

Step-by-Step Application Process

The LMIA process has two parallel tracks that must be completed in sequence:

1. Employer determines the correct LMIA stream based on NOC code, wage, and province. Use the NOC Finder to confirm the correct code.
2. Employer advertises the position — at minimum on the Government of Canada Job Bank plus two additional channels (for High-Wage and Low-Wage streams). Advertising must run for the required period before the LMIA application is filed.
3. Employer documents recruitment efforts — records of all applicants reviewed, interviews conducted, and reasons for non-selection must be kept and submitted.
4. Employer submits LMIA application to Service Canada with the $1,000 fee (or confirms fee exemption), signed job offer, recruitment evidence, and any stream-specific documents (transition plan for High-Wage; housing and transport plan for Low-Wage).
5. Service Canada reviews and issues the LMIA decision — processing times vary by stream (10–60 business days).
6. Worker receives the positive LMIA letter from the employer and applies to IRCC for the work permit using IMM 1295 or the online portal.
7. IRCC processes the work permit application — approximately 6–8 weeks for applicants outside Canada; up to 255 days for inland applications. Workers with biometrics already on file may receive decisions sooner.
8. Worker receives the Port of Entry letter or work permit and may begin employment with the approved employer at the approved location.

Fees and Financial Obligations

The LMIA-based work permit involves fees on both sides of the employer-worker relationship. Employers pay $1,000 to Service Canada per position assessed (agricultural and eligible caregiver employers are exempt from this fee). Workers pay $155 to IRCC for the work permit application itself, plus $85 for biometrics if biometrics are not already on file. There is no Right of Permanent Residence Fee (RPRF) for a work permit — that fee applies only to permanent residence applications.

For Low-Wage stream workers, employers are also required to pay for return transportation and, in many cases, provide or arrange affordable housing. These are not fees payable to IRCC or Service Canada but rather mandatory employer obligations that must be reflected in the employment contract and documented in the LMIA application.

Employers should also budget for legal or regulatory assistance with LMIA preparation, given the documentation demands around recruitment advertising and transition plans.

Document Checklist and Common Refusal Reasons

A well-prepared LMIA application package typically includes the following:

• Completed LMIA application form
• Signed job offer letter specifying title, duties, wage, location, and hours
• Proof of recruitment advertising (Job Bank screenshots, dates of posting, secondary channel evidence)
• Records of all Canadian applicants reviewed and documented reasons for non-selection
• Transition plan (High-Wage stream) or housing/transport plan (Low-Wage stream)
• Business legitimacy documents (business registration, financial statements, CRA records)

The most common reasons ESDC refuses LMIA applications are: insufficient recruitment evidence; wages below the provincial median without proper stream classification; employer non-compliance history from a previous TFWP involvement; incomplete or inconsistent documentation; and job descriptions that do not match the listed NOC code. Workers who have been refused should not simply reapply without addressing the root cause of the refusal — a pattern of refusals can trigger enhanced scrutiny on future applications.

After Approval — Rights and Restrictions

An LMIA-based work permit is a closed (employer-specific) work permit. This means the permit holder may only work for the employer named on the permit, in the role described, and at the approved worksite location. Changing employers, job titles, or locations mid-permit generally requires a new LMIA and a new work permit application.

Dependent family members of a work permit holder may be eligible to accompany the primary permit holder. A spouse or common-law partner may qualify for an open or spousal open work permit depending on the NOC level of the principal applicant’s position. Dependent children may apply for study permits if they will be attending school in Canada.

Some LMIA-based work permit holders accumulate Canadian work experience that qualifies them for permanent residence through Express Entry’s Canadian Experience Class or a Provincial Nominee Program. Completing a full year of skilled work in Canada under an NOC TEER 0–3 occupation can significantly improve a Comprehensive Ranking System score.

How VGIS Can Help

Both the LMIA process and the subsequent work permit application involve significant documentation, timing coordination between the employer and the worker, and compliance requirements that carry consequences if mishandled. Dimple Verma, RCIC-IRB #R708308, leads VGIS’s work permit practice and advises both employers navigating Service Canada’s requirements and foreign workers preparing their IRCC applications.

VGIS assists with stream selection, advertising strategy, transition plan drafting, and complete LMIA package preparation. For the worker’s side, the firm reviews and assembles the full work permit application, confirms supporting document requirements, and monitors processing. Book a paid consultation to discuss your specific employment situation and timeline.

Fees & Costs

Fee Component	Amount (CAD)
Government Fee	Worker: $155 (work permit fee). Employer: $1,000 LMIA fee per position (paid to ESDC/Service Canada)
Biometrics	$85 individual (if applicable)

Fees current as of 2026. IRCC may update fees periodically — confirm on the official source link below before paying.

Key Documents Required

• Positive LMIA letter from Service Canada (employer provides to worker)
• Employment contract signed by employer and worker
• Work permit application forms (IMM 1295 or online equivalent)
• Passport valid for duration of intended work
• Medical examination (if required for occupation)
• Biometrics (if applicable)

Frequently Asked Questions

How long does the entire LMIA work permit process take from start to finish?

For a High-Wage LMIA, expect approximately 60 business days (roughly 3 months) for Service Canada to process the employer’s application, followed by 6–8 weeks for IRCC to process the worker’s work permit application outside Canada. The total from first job advertising to work permit in hand is often 5–7 months. The Global Talent Stream cuts the LMIA portion to approximately 2 weeks.

Can my employer change my duties or location after I receive the work permit?

Generally, no. An LMIA-based work permit is employer-specific and tied to the position and worksite described in the LMIA. Minor operational changes may be acceptable, but a meaningful change in role, duties, wage, or location typically requires a new LMIA application and a new work permit. Failing to obtain a new permit when required puts both the worker and the employer at risk of a compliance violation.

Can I work for a second employer while holding an LMIA work permit?

No. An LMIA-based (closed) work permit authorises employment only with the named employer. If you want to take on additional employment or switch employers, you need either a new LMIA work permit or a separate open work permit (if you qualify for one through another category, such as a spousal open work permit).

Is the $1,000 LMIA fee refundable if Service Canada refuses the application?

The $1,000 LMIA employer fee paid to Service Canada is generally non-refundable, regardless of the outcome. This makes thorough preparation before submission critical. Some exemptions exist (e.g., agricultural stream employers pay $0), but for standard High-Wage and Low-Wage applications, the fee is not returned on a refusal.

Does holding an LMIA work permit help me get permanent residence?

Indirectly, yes. Skilled Canadian work experience gained under an LMIA work permit — specifically in a NOC TEER 0, 1, 2, or 3 occupation — can qualify you for Express Entry’s Canadian Experience Class and may attract Provincial Nominee Program invitations. However, the work permit itself does not confer any PR points; it is the work experience accumulated under the permit that matters.

Do I need a lawyer or consultant to get an LMIA?

There is no legal requirement to use a regulated representative for an LMIA application. However, LMIA applications have strict documentary requirements, and a refusal is both costly (the fee is non-refundable) and time-consuming. Many employers — especially those applying for the first time — work with an RCIC or immigration lawyer to ensure the recruitment evidence and transition plan meet Service Canada’s standards.

Official Government Source: https://www.canada.ca/en/employment-social-development/services/foreign-workers.html

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Disclaimer: This page is for general informational purposes only and does not constitute legal or immigration advice. Immigration laws and IRCC policies change frequently. For advice specific to your case, please book a paid consultation with our licensed RCIC-IRB. VG Immigration Services Inc. — Dimple Verma, RCIC-IRB #R708308.