The employer-side Labour Market Impact Assessment process in Canada: choosing the high-wage or low-wage stream, recruiting before applying, the $1,000 processing fee, Service Canada processing times, and what a positive LMIA does and does not do.
The LMIA in one paragraph
A Labour Market Impact Assessment, or LMIA, is an assessment by Employment and Social Development Canada, delivered through Service Canada, of whether hiring a temporary foreign worker is likely to have a positive or neutral effect on the Canadian labour market. The employer applies. If the assessment is positive, the worker uses the decision letter to apply to Immigration, Refugees and Citizenship Canada, known as IRCC, for an employer-specific work permit. A positive LMIA is not itself a work permit, and it does not guarantee that IRCC will issue one. The employer process and the worker process are separate, and the employer steps in this guide must be finished before the worker applies.
This guide covers the employer side only. It states the process as Employment and Social Development Canada states it on the Temporary Foreign Worker Program pages. It gives no immigration advice about a particular worker, and it does not assess whether a particular hire is likely to succeed.
Step 1: Confirm that the employer, the job, and the employment relationship are genuine
The employer is the entity that hires the temporary foreign worker, sets the working conditions, and directly pays the worker. Service Canada looks at who is obliged to meet program requirements, who benefits from the work, who decides where, when, and how the work is done, who pays wages and statutory deductions, who hires and can dismiss, and who signs the employment agreement.
Two limits matter at this stage. A staffing or employment agency that recruits workers for other businesses is not considered the employer under the program, because no employer-employee relationship exists between the agency and the worker, and it cannot be approved to hire a temporary foreign worker for another business. And an employer cannot classify a temporary foreign worker as an independent contractor, either at hiring or afterwards, or structure the relationship to avoid payroll and program requirements. Misclassification is treated as non-compliance and can bring monetary penalties and a ban from the program.
Every employer must also provide documents with the LMIA application showing that the business and the job offer are legitimate. Employers that have not employed a temporary foreign worker in the past 6 years face a review of whether they have made reasonable efforts to provide a workplace free of abuse and whether they are affiliated with an ineligible employer. Gather the business documents before recruiting, because a weak legitimacy file cannot be repaired by a long advertising run.
Step 2: Choose the stream by comparing the offered wage with the threshold
The wage offered on the LMIA application decides the stream for most positions. Compare it with the hourly wage threshold for the province or territory of the work location. At or above the threshold, the high-wage stream applies. Below it, the low-wage stream applies, with its cap, refusal-to-process rules, and recruitment requirements.
The threshold is the applicable median hourly wage plus 20 percent, drawn from the Statistics Canada Labour Force Survey. Read the threshold table on the Employment and Social Development Canada page on the day the application is prepared. The table is dated by receipt period, and the figures in this guide are the ones in force for applications received as of July 17, 2026.
Beyond the high-wage and low-wage streams, the program pages list primary agriculture positions, applications to support permanent residence, the Global Talent Stream, caregiver positions, foreign academic positions, hiring in Quebec, and the Recognized Employer Pilot. The Global Talent Stream is described separately below. Do not file under a specialized stream on the strength of a job title. Each stream page states its own eligibility, and filing under the wrong stream costs the advertising period and the fee.
Step 3: Recruit in Canada first, and build a record that can be inspected
Recruitment means making reasonable efforts to hire or train Canadians and permanent residents before offering the job to a temporary foreign worker. The record of that effort is part of the application, and Service Canada reviews recruitment activity up until a decision is made, including any Job Bank posting that stays active after submission.
For low-wage positions, the minimum recruitment requirements are Job Bank advertising, demonstrated youth targeting, and at least 2 additional methods. Youth targeting means efforts to reach and encourage youth aged 15 to 30 to apply, which can include the Job Bank youth section and youth job boards, work with schools or colleges, participation in youth employment programs, or other platforms popular with youth. Each of the 2 additional methods must be consistent with the occupation and must target a different underrepresented group, such as vulnerable youth, Indigenous peoples, newcomers to Canada, persons with disabilities, or asylum claimants with valid work permits. A provincial or territorial counterpart to Job Bank can count as a recruitment method, but it does not meet the underrepresented-groups requirement. If the 2 additional methods are both online, they must each have unique value and reach different audiences. Two advertisements on the same type of website count as one method.
The Job Bank posting carries its own mechanics. Use the Job Match service, select the default or basic matching option, invite job seekers matched within the first 30 days who are rated 2 stars or more to apply, and use Direct Apply so registered job seekers authorized to work in Canada can apply directly. Consider every Direct Apply application. Disabling Direct Apply, or not considering its applicants, can be treated as failing the recruitment requirements.
The advertisement itself must carry the company operating name, business address, position title, job duties, terms of employment, language of work, wage including any raises or bonuses, benefits if applicable, work location, and contact information. A wage range may be used, but the minimum of the range must meet the prevailing wage. Keep all recruitment records for at least 6 years, and be ready to provide the results of the recruitment effort, including who applied and why Canadians or permanent residents were not hired.
Step 4: Check the low-wage cap and the refusal-to-process rules before filing
Low-wage hiring is capped by work location. The general cap is 10 percent of the workforce at a specific work location. For construction, food manufacturing, hospitals, and nursing and residential care facilities, and for specific in-home caregiver positions, the cap is 20 percent. Some positions have no cap, including listed on-farm primary agriculture positions, caregiving positions for health care institutions in listed occupations, positions in support of permanent residence only, short-duration positions of generally 120 calendar days or less that meet the stated conditions, and low-wage positions in seasonal industries of no more than 270 calendar days used once per year per work location. Employers with fewer than 10 employees at a work location complete the cap section on a workforce size of 10, which allows a maximum of 1 low-wage temporary foreign worker under a 10 percent cap or 2 under a 20 percent cap. Complete the cap section on the application form and be ready to support it with payroll records.
Separately, certain low-wage LMIA applications for work locations in a census metropolitan area with an unemployment rate of 6 percent or higher will not be processed. The refusal-to-process pages state the exemptions that may apply. Check both the cap and the refusal rules before paying the fee, because an application above the cap or inside a refusal area may not be processed at all. Temporary measures for rural areas outside census metropolitan areas in participating provinces and territories can affect the proportion for some low-wage positions, and the rural measures page states which positions and regions they cover.
Low-wage employment must also be full-time, meaning at least 30 hours of work per week. The low-wage program requirements page states the further conditions for wages, job duties and working conditions, transportation, housing, health insurance, workplace safety, the employment agreement, the language of work, and unionized positions. Read that page in full for the position being filed. This guide does not reproduce its wage, transportation, or housing conditions, because they turn on the occupation and work location.
Step 5: Apply through LMIA Online, pay the fee, and handle Quebec correctly
Submit the application through LMIA Online. Processing starts when a complete application is submitted: all required documents for the stream, all required documents signed by the employer, and the processing fee paid where one applies. An incomplete application will not be processed and the fee will not be charged. Apply as soon as possible and up to 6 months before the expected job start date, allowing for the advertising period that must already be complete.
The processing fee is $1,000 for each position requested. It can be paid by Visa, MasterCard, American Express, certified cheque, money order, or bank draft payable to the Receiver General for Canada. A pilot for online banking payment exists for applications of 6 positions or more, by emailed invitation. The fee is not refunded on withdrawal, cancellation, or a negative LMIA, and refunds are issued only if a fee was collected in error. As noted above, the fee cannot be paid by or recovered from the worker, and no recruitment fee may be charged to or recovered from the worker.
If a paid third-party representative acts for the employer, complete the third-party representative section of the application. A paid representative must be a member in good standing of a provincial or territorial law society, the Chambre des notaires du Québec, the Law Society of Ontario as a paralegal, or the College of Immigration and Citizenship Consultants. The employer must not recover the representative's cost from the worker, and the representative cannot demand or recover the processing fee or other recruitment costs from the worker. The employer remains responsible for the actions of anyone who recruits on its behalf, and some provinces and territories have their own recruiter requirements.
For a position in Quebec with an employment period of more than 30 consecutive days, submit the application at the same time to Service Canada and to Quebec's Ministère de l'Immigration, de la Francisation et de l'Intégration, in the format the province requires. Failure to submit to both at the same time can affect processing.
Step 6: After the decision, hand over the right documents and keep the file
Service Canada issues a positive or negative LMIA in the form of a decision letter. On a positive LMIA, give the worker a copy of the decision letter and Annex A, which the worker needs to obtain a work permit. Keep Annex B for the employer's records only and do not share it with the worker. Ensure the employment agreement is signed by the worker and a mutually signed copy is provided in the worker's chosen official language, English or French, before or on the first day of work. Tell the worker to apply for a work permit or permanent residence before the LMIA expiry date, and tell the processing centre at once about any change or error on the positive LMIA or its annexes. Keep every document used to support the application for at least 6 years from the worker's first day of work.
To add, remove, or change a worker's name on a positive LMIA, send the completed request form to the processing centre that handled the application, at least 15 business days before the LMIA expiry date. Names cannot be added, removed, or changed for permanent residence or dual-intent applications, Seasonal Agricultural Worker Program applications, applications where the work permit application has been submitted or the permit issued in the case of removal or change, or an expired LMIA. For Quebec positions, the name-change request must also go to the Ministère at the same time.
On a negative LMIA, the processing fee is not reimbursed. Service Canada may also suspend LMIA processing where there is reason to suspect non-compliance that would put the health or safety of temporary foreign workers at serious risk, while the matter is investigated. Employer compliance obligations continue after hiring, including inspections, and the employer must inform the Employer Contact Centre at once of changes the compliance pages list. Voluntary disclosure of possible non-compliance before an inspection is launched is a separate published step.
The Global Talent Stream, in brief
The Global Talent Stream is the faster route for uniquely skilled talent and in-demand workers. Category A covers employers referred by a designated referral partner who are hiring a person with unique and specialized talent to help the business scale up and grow. Category B covers hiring in an occupation on the global talent occupations list, with no referral required. Employers hiring through the stream must develop a Labour Market Benefits Plan showing employer-specific commitments with lasting, positive effects on the Canadian labour market, and progress reviews of that plan are separate from compliance activities. The September 2026 average processing time for the stream was 9 business days. Read the stream requirements page before assuming a position qualifies, because the referral, occupation-list, wage, and benefits-plan conditions are all stated there.
Figures this guide does not state
This guide states no advertising duration for high-wage positions, because the Employment and Social Development Canada pages state the low-wage 8-week rule and a 14-day to 8-week range across streams without fixing the high-wage period. It states no maximum employment duration for high-wage or low-wage positions, no transition-plan contents for high-wage positions, and no wage, transportation, or housing figures beyond the threshold table and the full-time rule, because those figures turn on the stream, occupation, and work location and must be read on the stream requirements page for the position. It states no LMIA-exempt occupation list, because exemptions are stated on the IRCC exemption pages and change without notice. Where a figure was cut, the guide names the official page that owns it.
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