Work Permit and LMIAs

What are Work Permits and Labour Market Impact Assessments?

Foreign nationals who want to work in Canada will likely encounter the terms “work permit” and “Labour Market Impact Assessment” as part of their application requirements. What are these documents, and what are they for? 

There are two parts to this that are discussed below:

1. Canadian Work Permit

Unless you are a Canadian citizen or a Canadian permanent resident, you will likely need a work permit to accept employment in Canada, although in very limited cases, it is not required. A Canadian work permit is an official document permitting eligible foreign nationals to take a job within Canada for a specific time period. 

Canadian work permits have an expiry date. The length of work permits and the accumulated length of time that foreign nationals can work in Canada are limited by the Canadian government. With a work permit, foreign nationals are usually eligible to work in Canada for a specified amount of time. Once a permit is nearing expiry, foreign nationals may apply to extend their stay by way of a new permit through a new employer, or with the same employer, or, they must leave Canada. To be able to work in Canada permanently, a foreign national must obtain permanent resident status.

Typically, foreign nationals need to have a Canadian job offer in hand to apply for a work permit. Applicants must then show proof that they are qualified to take up the job and that they are not a threat to the country’s security. Other eligibility requirements include proof that the applicant will leave Canada after the expiry of their work permit and that they have sufficient funds to sustain themselves and their dependents during their stay.

Work permits usually require that a foreign worker follow several conditions, such as:

• To work only for a specific employer (from whom the applicant has received the job offer);

• To work only for a specific amount of time; and

• To work only in a specific location (if applicable).

Should a foreign worker wish to change employers, she/he must obtain a new work permit.

2. Labour Market Impact Assessment

Before a Canadian employer can provide a temporary job offer to foreign nationals, they must first obtain a positive or neutral Labour Market Impact Assessment (LMIA).

An LMIA is a document used to support a foreign national’s application for a Work Permit under the Temporary Foreign Worker Program (TFWP). It allows Canadian employers to hire foreign workers on a temporary basis. The LMIA functions as a measure to ensure that Canadian employers look to the local labour pool first before hiring foreign nationals. The LMIA process helps in determining if there is a labour shortage that no Citizen or permanent resident of Canada is available to fill a position, thus requiring it to be filled by a foreign worker. 

Employment and Social Development Canada (ESDC) assesses the impact of bringing foreign workers into the Canadian labour market by looking at current labour market information. They also investigate if no Canadian workers truly are available for the job by assessing the employers’ recruitment efforts and working conditions. 

If a need for a foreign worker to fill the job has been found, the applying employer will obtain a positive LMIA.

ESDC is also responsible for monitoring if employers follow the conditions attached to the LMIAs issued. These conditions must be strictly adhered to and monetary penalties are imposed against non-compliant employers.

If you have a specific question about work permits and LMIAs, please book a consultation with us.