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Usually, Canadian employers must get government approval before hiring foreign workers by having a Labour Market Impact Assessment (LMIA). An LMIA may be issued in cases where a Canadian employer cannot fill the vacancy with a local Canadian worker or a permanent resident. This is after demonstrating this by advertising the jobs in Canada and hiring Canadians, proving that those applying are not qualified for the position offered.

After applying for the LMIA, an employer has to wait for a letter of approval from the ESDC or the Employment and Social Development Canada, called the positive LMIA or a confirmation letter. It confirms the need to hire a foreign worker. Once the employer is in the position of the LMIA, the potential candidate can now apply for a work permit, and he/she needs to have the following: a job offer letter, a contract, an LMIA copy, and the LMIA number.

Negative LMIA

If, in any case, that your employer is unable to meet the requirements of the program, ESDC/Service Canada will issue a negative LMIA letter. But the Department will also provide the employers with the required information to recover any work permit-related fees that were already paid.

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The LMIA process was slightly changed in 2021. The new LMIA system divides job positions into two categories:

  •  High- wage positions

Jobs can be classified as high wage if the salary is equivalent to the median wage or is more than it in the province where the job will be performed,

  •  Low-wage positions.

Low-wage positions are those that have a salary that is lower than the median wage.

Hiring High-Wage Workers

To hire high-wage foreign workers, a transition plan is an essential requirement for all Canadian employers who want to employ temporary foreign workers at a wage equal to or above the provincial or territorial median hourly wage.

Transition Plan, a Schedule C form to the Application for an LMIA, represents commitments of an employer agreeing to stick to the specifics of the occupation and work location for which they seek TFWs.

Hiring Low Wage Workers

A Transition Plan is not needed when hiring low-wage workers and when applying for an LMIA. There is a cap that limits the number of employees a business can hire or employ for low-wage.

Canadian employers with more than ten employees will be restricted to a maximum of 10% cap on low-wage temporary foreign workers.

This cap will be in place for the next two years to give Canadian employers time to transit to a Canadian labor market.

How to Hire expecting an LMIA

The Temporary Foreign Worker Program (TFWP) enables you to recruit temporary foreign workers to fill labor and skill shortages. Once the employer receives the LMIA, he should share a copy of the confirmation letter with each temporary foreign worker and inform them to apply for a work permit.

How to recruit if you do not need an LMIA

The International Mobility Program (IMP) allows Canadian employers to recruit temporary foreign workers without an LMIA. When hiring using this program, Canadian employers need to:

  • Pay the Employer Compliance Fee
  • submit an offer of employment form through the Employer Portal

After An LMIA is approved, the Next Step.

After your LMIA application has been approved, you will have to send a copy of the LMIA and Annex A to the foreign worker to apply for a work permit!

Need Help Applying For An LMIA? We Can Help!

Applying for LMIA in Canada can be very confusing and tricky, that is, if you are not sure of what you are doing. AMK Global has been helping clients complete their LMIA applications with ease. Our immigration professionals are always on standby to assist you with your LMIA and Temporary Work Permit Applications.

Get free online consultation by experienced and regulated consultants!