What steps should a Canadian employer take to hire a Foreign Worker

January 3, 2015 · 5:34 pmImmigration
What steps should a Canadian employer take to hire a Foreign Worker

Updated October 19, 2026. The article below was written in January 2015, and several rules it describes have changed since. Occupation codes now have five digits and TEER categories under NOC 2021 (from November 16, 2022), Citizenship and Immigration Canada is now Immigration, Refugees and Citizenship Canada, and the recruitment and cap rules for foreign workers were revised between 2024 and 2026. The current process is set out after the original article.

In light of a tough economic situation around the globe and also in Canada, our government toughened the rules for any Canadian employer who wants to bring a foreign specialist to work in Canada. The idea is to discourage them to bring a foreign worker, if Canadians are available for the position. At the same time, we recognize that Canada needs foreign specialists who can boost the economy, bring new skills and fill the labour shortage.

The reality is that today it is harder than ever to persuade Service Canada that your client, an employer, needs that foreign worker and that he or she could not find a specialist among Canadians.

Therefore, it is wise to have an immigration counsel by your side when you intend to file an application to bring a foreign professional.

The process of hiring foreign workers begins from the employer’s search for the job title for their prospective foreign employee. It is not enough to have a rough idea of whom the employer wants to bring. Let’s say, I want a manager in my department to co-ordinate staff and services. In order to be properly assessed by Service Canada and further, by the Citizenship and Immigration Canada, the employer has to look in the National Occupational Classification (NOC) coding system which can be found on both websites, Citizenship and Immigration Canada and Service Canada. Managers can be classified in different categories and levels of professions. Different categories and levels have their own specifics which in turn, influence the ability for both, employers and future foreign specialists to apply under various streams of occupations for approval of the employer by Service Canada to bring a foreign worker and approval of the foreign worker for a Canadian Work Permit.

National Occupation Classification has a detailed description of requirements and duties for each profession. Sometimes, several occupations fit for the same profession.

The employer, having a 4-digit NOC code can identify the level of the required occupation and understand is it fit for a Higher-skilled Occupation or Lower-skilled one.

Then, the employer must find what conditions and wages are appropriate for the occupation under which they intend to bring a foreigner in order to proceed with the preparation of the job advertisement in the Job Bank. The employer has to advertise the available position in their company to Canadians first, and then, if they could not find a candidate, proceed with the Labour Market Impact Assessment (LMIA) application before Service Canada for a foreign worker they intend to hire. Service Canada charges the employer for assessing their LMIA applications with a fee in the amount of $1,000 for one position (the processing fee does not apply in a case of foreign farmers).

It is a new requirement now that Canadian employers, although hiring foreigners, would be transitioning a Canadian workforce. For that, they need to submit a Transition Plan in which they agree to undertake to recruit, retain and train Canadians and to help the foreign workers that they hire to obtain a permanent residence in Canada. The requirement for a Transition Plan does not apply in a case where an employer hires a foreign specialist and pays them lower than provincial / territorial median hourly wage (average) wages. However, if low wages will be paid, the employer will be subject to a cap on the proportion of low-wage temporary foreign workers. In certain cases, Service Canada may exempt the employer from submitting a Transition Plan (if the position of a foreign worker is of a limited duration, up to 2 years or a job not one where the employer could be expected to transition to a Canadian worker).

At present time, an employer hiring a foreign worker cannot justify the position by claiming that the language other than English or French is required for the position, unless another language is necessary for the job.

List of documents (according to the requirements of Service Canada) which have to be presented to Service Canada with the LMIA:

  • Proof of recruitment;
  • Business registration or incorporation documents;
  • Provincial/territorial/municipal business license;
  • CRA documents: Schedules 100 and 125 of the T2 Corporation Income Tax Return (for corporations only – 2 most recent returns filed;
  • Business contracts for goods and/or services;
  • Provincial/territorial documents, such as: workplace safety and insurance (e.g. workers compensation board) clearance letter, or other appropriate documentation;
  • Attestation by a lawyer, notary public or chartered accountant confirming that the business exists and the main activity of the business;
  • Provincial/territorial documentation requirements:
    • Alberta – Employment Agency Business Licence (Alberta’s Fair Trading Act) if applicable.
    • British Columbia – Employment Agency Licence (British Columbia’s Employment Standards Act) if applicable.
    • Manitoba – Certificate of Registration (Manitoba’s Worker Recruitment and Protection Act).
    • Nova Scotia – Employers must, as of August 1, 2013, obtain a certificate of registration, valid for one year, from the province’s Labour Standards, if they are planning to hire a foreign worker.

Source: Citizenship and Immigration Canada and Service Canada websites

The current process, step by step

Most employers need a positive Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC) before a foreign worker can apply for an employer-specific work permit. Some positions are exempt under the International Mobility Program and need no LMIA. For a position that does, the order is:

StepWhat it involves
Classify the jobFind the five-digit NOC 2021 code and its TEER category; the duties in the job offer have to match that code
Set the wagePay at least the prevailing wage for the occupation and region, and compare it with the provincial threshold to see which stream applies
Recruit in CanadaAdvertise on Job Bank and use at least 2 other recruitment methods, within the 3 months before applying
Apply for the LMIASubmit the application with the recruitment evidence and pay the $1,000 processing fee for each position
Worker applies for the permitThe worker must apply to IRCC before the positive LMIA expires, at most 6 months after it is issued

High-wage or low-wage: the threshold decides

The stream depends on the wage, not on the job title. The threshold is the median hourly wage in the province or territory plus 20 per cent; for LMIAs received from July 17, 2026, it is $36.92 an hour in Ontario. A wage at or above the threshold makes the job high-wage, a wage below it makes it low-wage. ESDC warns that adjusting the offered wage to fit a stream or to avoid a requirement can lead to a negative LMIA.

RequirementHigh-wage positionLow-wage position
Advertising periodAt least 4 consecutive weeks within the 3 months before applyingAt least 8 consecutive weeks within the 3 months before applying, including outreach to youth aged 15 to 30
Recruitment methodsJob Bank plus at least 2 other methodsJob Bank plus at least 2 other methods, each aimed at a different under-represented group
Share of foreign workersNo capCapped at 10% of workers at the work location (20% in some sectors), with listed exemptions
Further employer costsAn annual review of the wage against updated Job Bank wagesRound-trip travel, private emergency health insurance where the province requires it, and suitable housing costing under 30% of the worker's pre-tax income

Two more rules apply to low-wage jobs. Since September 26, 2024, ESDC does not process low-wage LMIAs for jobs in a census metropolitan area where unemployment is 6 per cent or higher, apart from listed exceptions. And the job must be full-time, at least 30 hours a week. For a high-wage job the employer also files a transition plan, which stays in force for as long as the worker is employed. After the annual wage review the wage can go up, but never below the wage in the positive LMIA.

After the worker starts

The employer has to keep every record about the worker for six years from the first day of employment. ESDC inspections can be on site or virtual, announced or unannounced, and need no warrant except for a private home. Penalties reach $100,000 per violation, up to $1 million a year, and a non-compliant employer can have its name and address published on IRCC's list of non-compliant employers. The most serious violations lead to a permanent ban from both the Temporary Foreign Worker Program and the International Mobility Program. Between April 1, 2025 and March 31, 2026, the program issued over $10.2 million in penalties, against $4.5 million the year before.

What the worker needs to know

An employer-specific work permit is tied to the employer named on it. If the job ends, the worker cannot start with another employer until a new permit is issued; working before then is unauthorized work, which can lead to a removal order. Every statement in the LMIA and in the permit application has to be accurate, because an inaccurate one can be treated as misrepresentation, which carries a five-year bar. How temporary work can lead to permanent residence is covered in our article on temporary foreign worker applications.

Karb Law's legal team assists employers and workers with LMIA and work permit applications, and Angelina Shuster, a licensed paralegal, represents clients before the Immigration and Refugee Board when status is in question. A planned hire can be reviewed through a free assessment.

This article is general information, not legal advice. ESDC publishes the current thresholds and requirements, and they change.

FAQ

Frequently asked questions

How long does an employer have to advertise before applying for an LMIA?

For a high-wage position, at least 4 consecutive weeks within the 3 months before applying. For a low-wage position, at least 8 consecutive weeks in that period, with outreach to youth. In both streams the job goes on Job Bank plus at least 2 other recruitment methods.

How does an employer know whether a job is high-wage or low-wage?

By comparing the offered wage with the provincial or territorial threshold, which is the median hourly wage plus 20 per cent. For LMIAs received from July 17, 2026, the Ontario threshold is $36.92 an hour; at or above it the job is high-wage.

How long is a positive LMIA valid?

Up to 6 months, and sometimes less. The worker has to apply for the work permit before the expiry date shown on the LMIA, although the job itself can start later. If the worker does not apply in time, the employer needs a new LMIA.

What happens to an employer that breaks the program rules?

Penalties of up to $100,000 per violation and $1 million a year, publication of the business name and address on the list of non-compliant employers, and for the most serious violations a permanent ban from hiring through either foreign worker program.

Angelina Shuster — Licensed Paralegal, Karb Law
Written by

Angelina Shuster

Licensed Paralegal · Law Society of Ontario

Angelina Shuster is a paralegal licensed by the Law Society of Ontario with 25 years of experience in Canada. Based at Karb Law’s office in Richmond Hill, she represents clients across Ontario and in immigration matters throughout Canada, and has helped thousands of people with immigration and legal matters: refugee claims, appeals, admissibility and detention reviews before the Immigration and Refugee Board, and summary-conviction criminal matters.

About Angelina Shuster & her credentials →
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