LMIA and Temporary Foreign Worker Program (TFWP)

As a trusted Regulated Canadian Immigration Consultant (RCIC), we understand the complexities of hiring temporary foreign workers (TFWs) through Canada’s Temporary Foreign Worker Program (TFWP). If your business is facing a shortage of skilled Canadian or permanent resident workers, the Labour Market Impact Assessment (LMIA) is a critical step to ensure compliance and success in hiring TFWs. We are here to guide you through the process, ensuring your application meets all requirements and supports your business needs.

What is the Temporary Foreign Worker Program (TFWP)?

The TFWP allows Canadian employers to hire foreign workers to address temporary labour and skill shortages when no Canadians or permanent residents are available. The program is designed to balance the needs of businesses with the protection of the Canadian labour market, ensuring that hiring TFWs does not negatively impact local workers.

The Role of the Labour Market Impact Assessment (LMIA)

An LMIA is a document issued by Employment and Social Development Canada (ESDC) to assess whether hiring a TFW will have a positive, neutral, or negative impact on the Canadian labour market. It is a mandatory requirement for most employers seeking to hire TFWs, and it ensures that:

The job offer is genuine and aligns with the reasonable needs of your business.
Your business is legitimate and capable of fulfilling the terms of the job offer.
You have made sufficient efforts to recruit Canadians or permanent residents first.
The employment complies with federal and provincial/territorial labour laws.

Failure to meet these requirements can result in a negative LMIA decision or consequences for non-compliance, such as penalties or bans from the TFWP.

High-Wage vs. Low-Wage Streams

The wage offered for the position determines whether you apply for an LMIA under the high-wage or low-wage stream. Below are the provincial/territorial wage thresholds effective for LMIAs received as of June 27, 2025:

High-Wage Stream: If the wage is at or above the provincial/territorial threshold, you must apply under this stream. Employers may request an employment duration of up to 3 years, with longer durations possible in exceptional cases with adequate rationale. This stream includes positions like the Global Talent Stream, caregiver roles, agricultural stream, and applications supporting permanent residency.
Low-Wage Stream: If the wage is below the threshold, you must meet the low-wage stream requirements, including a 10% cap on the proportion of TFWs at a specific work location (20% for specific sectors like construction, food manufacturing, hospitals, and caregiving). These LMIA Low-Wage rules have been in effect since November 8, 2024.

Transition Plan for High-Wage Positions

For high-wage positions, a transition plan is mandatory to outline how you will recruit, retain, and train Canadians or permanent residents to reduce reliance on TFWs. Exemptions apply for specific roles, such as in-home caregivers, health care providers, or time-limited project-based positions.

Business Legitimacy Assessment

To obtain a positive LMIA, your business and job offer must be deemed legitimate. ESDC assesses:

Goods or Services: Your business must provide a good or service in Canada.
Reasonable Employment Need: The job offer must align with your business’s operational needs.
Ability to Fulfill Terms: You must demonstrate the ability to meet the job offer’s terms, including wages and other financial obligations.
Compliance History: Your business must have no unresolved compliance issues with the TFWP.

Required Documents

Depending on your TFWP history and the type of LMIA application, you may need to submit:

A valid municipal/provincial/territorial business license.
Recent Canada Revenue Agency (CRA) tax documents (e.g., T4 Summary, PD7A, T2 Schedules).
Recruitment and advertisement records showing efforts to hire Canadians or permanent residents.
For trucking applications: Carrier profile, National Safety Code (NSC) certificate, and fleet insurance.
For foreign vessel applications: Coasting Trade Act letter of authority.
For private household employers: Proof of address and income (e.g., CRA Notice of Assessment).
For in-home caregiver applications: Proof of the individual requiring care (e.g., age or disability documentation).

If your business has received a positive LMIA in the past 2 years, some document requirements may be waived.

Recruitment Requirements

Before applying for an LMIA, you must demonstrate efforts to hire Canadians or permanent residents. This includes:

Advertising on the Government of Canada’s Job Bank.
Conducting at least two additional recruitment methods targeting underrepresented groups (e.g., Indigenous peoples, persons with disabilities, newcomers, or vulnerable youth).
Ensuring advertisements run for at least 4 consecutive weeks within 3 months prior to the LMIA application.

Note: Recruitment requirements are suspended for primary agriculture positions until December 31, 2025, though employers are still expected to prioritize Canadian and permanent resident candidates.

Employer Obligations

Once a positive LMIA is issued, employers must:

Pay Prevailing Wages: Wages must match or exceed the median wage for the occupation and location, as listed on Job Bank, or align with wages paid to similarly skilled Canadian employees.
Provide Safe Working Conditions: TFWs must receive workplace safety insurance and work in compliance with provincial/territorial labour laws.
Cover Transportation Costs: Pay for round-trip transportation for TFWs, non-recoverable from the worker.
Ensure Housing: Provide or arrange suitable and affordable housing (costing less than 30% of the TFW’s income).
Provide Health Insurance: Obtain private health insurance for emergency medical care until the TFW is covered by provincial/territorial health plans.

Compliance and Consequences

ESDC takes the integrity of the TFWP seriously. Non-compliance with program requirements, such as failing to meet wage, housing, or recruitment obligations, can lead to inspections, penalties, or bans from the program. Employers must report any changes to a positive LMIA, with minor modifications (e.g., wage increases within limits) requiring notification and material changes (e.g., occupation or employer changes) potentially necessitating a new LMIA.

How We Can Help

Navigating the LMIA process can be complex, but our experienced RCIC team is here to simplify it for you. We provide:

Comprehensive Guidance: From determining the appropriate stream to preparing a robust application.
Document Preparation: Assistance in gathering and submitting all required documents to prove business legitimacy and compliance.
Recruitment Support: Ensuring your recruitment efforts meet TFWP requirements, including targeting underrepresented groups.
Transition Plan Development: Crafting effective transition plans for high-wage positions to meet ESDC expectations.
Compliance Assurance: Helping you stay compliant with federal and provincial regulations to avoid penalties.

Let us handle the complexities of the LMIA process so you can focus on growing your business. Contact us today to discuss your hiring needs and start your LMIA application with confidence.

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