Canadian Employer Compliance & The LMIA Process

A Labour Market Impact Assessment (LMIA) is typically required for employers hiring foreign workers under the Temporary Foreign Worker Program (TFWP).

What is an LMIA?

An LMIA is a document from Employment and Social Development Canada (ESDC) that assesses the impact of hiring a foreign worker on the Canadian labour market. A positive LMIA confirms that hiring the foreign worker will have a positive or neutral effect.

Employers must pay a compliance fee of $1,000 per worker and meet advertising and recruitment requirements.

LMIA Application Steps (for Employers)

1. Advertise the job for at least 4 weeks on approved platforms (Job Bank, etc.)
2. Submit LMIA application online with supporting documents (recruitment efforts, job offer, business legitimacy).
3. Pay the $1,000 employer compliance fee.
4. Receive decision – processing can take 2‑6 months (faster for Global Talent Stream).

Employer Compliance Obligations

  • Must offer wages at least equal to the prevailing wage for the occupation
  • Must provide a safe work environment
  • Must not recover LMIA or compliance costs from the employee
  • Must keep records and allow inspections

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