A Canadian employer hires a foreign worker by first defining the job precisely, then choosing between two systems: the Temporary Foreign Worker Program, which requires a Labour Market Impact Assessment, and the International Mobility Program, which covers LMIA-exempt work permits. The employer completes its own step first, either an LMIA application or an offer of employment in the IRCC Employer Portal. Only then does the worker apply for a work permit. Compliance obligations continue for years after the first day.
Key Takeaways
- Check LMIA-exempt options before assuming you need an LMIA. Many hires qualify under the International Mobility Program.
- A worker who already holds a valid open work permit generally needs no new employer-side authorization at all.
- The LMIA application fee is generally $1,000 per position and is non-refundable. The employer compliance fee under the International Mobility Program is generally $230.
- Employer obligations under IRPR ss. 209.2 to 209.4 continue throughout employment, with six-year recordkeeping and possible inspections.
Which system applies to your hire?
Everything starts here, and getting it wrong costs months. Canada runs two parallel systems for foreign workers. The Temporary Foreign Worker Program requires a Labour Market Impact Assessment from Employment and Social Development Canada, a document confirming that no Canadian or permanent resident was available for the role. The International Mobility Program covers work permits that are exempt from that requirement, usually because the hire delivers a broader economic, cultural, or reciprocal benefit to Canada.
The practical difference is enormous. The LMIA route involves advertising, recruitment reporting, a $1,000 per position fee, and a wait. The LMIA-exempt route often skips all of it. So the sequence matters: identify the role, then test it against the exemption categories, and only fall back to the LMIA if nothing fits.
Step 1: Define the role, the occupation, and the wage
Write the job description before you talk to anyone about immigration. You need the duties, the location, the hours, and the pay, because every downstream decision keys off those four facts.
Then identify the correct occupation under the National Occupational Classification 2021. This is not a formality. The NOC occupation you select determines which streams are open to you, which wage applies, and whether the job description you drafted actually matches what you file. A mismatch between the stated duties and the chosen occupation is one of the more common reasons an application runs into trouble.
Finally, check the prevailing wage for that occupation in that specific location on Job Bank. Wage drives the stream selection later, and underpaying against the prevailing wage creates a compliance problem that surfaces during an inspection years afterward.
Step 2: Check LMIA-exempt options first
This is the step most employers skip, and it is the one that saves the most time and money. Before you commit to the LMIA process, run the role through the International Mobility Program categories.
Common exemption routes include intra-company transferees moving executives, managers, or specialised-knowledge staff into a Canadian affiliate. Free trade agreement professionals and traders, including under CUSMA, cover a defined list of occupations for citizens of partner countries. Significant-benefit work permits apply where the work delivers clear social or cultural gain to Canada. Francophone Mobility supports French-speaking hires outside Quebec. International Experience Canada handles reciprocal youth mobility.
And here is the one worth checking before all the others. If your candidate already holds a valid open work permit, such as a post-graduation work permit or a spousal open work permit, they can generally start work with no employer-side authorization whatsoever. No LMIA, no portal submission, no fee. Confirm the permit is valid and unrestricted, document what you saw, and hire.
In our experience, a meaningful share of employers who arrive convinced they need an LMIA turn out to have a candidate who was already authorized to work. Ask the question early. Our overview of LMIA-exempt work permit categories walks through the main routes in more detail.
What does the LMIA route involve?
If no exemption fits, you are in the Temporary Foreign Worker Program, and the LMIA becomes the gating document. The essentials, briefly.
You select a stream based on the offered wage measured against the provincial or territorial wage threshold, which splits applications into high-wage and low-wage streams with different requirements. Specialised streams sit alongside these, including the Global Talent Stream for certain in-demand tech and specialist roles, and the agricultural streams.
You then advertise and recruit as required by ESDC. This generally includes a posting on the national Job Bank plus other recruitment platforms, run for a minimum period set by ESDC. You must pay the prevailing wage for the occupation and location. The application fee is generally $1,000 per position requested, and it is not refunded if the application is refused.
Processing times vary considerably by stream and change often, so check the current ESDC posting rather than relying on what a colleague experienced last year. The advertising and wage mechanics have real depth to them, and we cover them properly in our step-by-step LMIA guide for employers.
How does the employer portal offer of employment work?
Under the International Mobility Program the employer still has a filing obligation, just a much lighter one. You submit an offer of employment through the IRCC Employer Portal, and you must do this before the worker applies for their permit. The portal generates an offer of employment number that the worker uses in their own application.
You then pay the employer compliance fee, which is generally $230. Fees change, so verify the current amount on the IRCC posting before you pay.
The content of that offer matters more than employers expect. The wage, the duties, the occupation, and the working conditions you enter into the portal become the benchmark you will be measured against if you are inspected. Enter what you will actually deliver, not an aspirational version of it.
What does the worker do next?
The worker applies for the work permit, usually online. Depending on nationality, the length of the intended stay, and the occupation, they may need to give biometrics and complete an immigration medical examination. Medicals commonly come up for healthcare work, childcare, and longer stays.
Some visa-exempt nationals and certain trade-agreement applicants may instead apply at a port of entry on arrival. That can be faster, but it also means an officer decides on the spot with no chance to supplement the file, so it suits clean, well-documented cases.
Most LMIA-based work permits are employer-specific. The permit names the employer, the occupation, and the location, and the worker is authorized only for that combination. Work in Quebec adds a separate layer: a Quebec Acceptance Certificate, the CAQ, applies in addition to the federal steps.
What are your obligations on day one?
On or before the worker’s first day, three things need to happen.
Give the worker a signed employment agreement in the language of their choice, English or French, setting out the same wage, duties, and conditions you filed. Provide the most recent government information document on temporary foreign worker rights. And confirm the worker is genuinely authorized to work before they start, meaning you have seen the permit and it covers this employer, this job, and these dates.
One more rule, and it is absolute. You cannot charge the worker recruitment fees, and you cannot recover them indirectly through deductions or repayment arrangements.
What compliance obligations continue after hiring?
Employer obligations run under IRPR ss. 209.2 to 209.4, and they last for the duration of the employment and beyond. In substance, you must provide wages, working conditions, and an occupation substantially the same as what you offered. You must make reasonable efforts to provide a workplace free of abuse. You must comply with the applicable provincial or federal employment law.
You must keep records for six years, and you may be inspected. Inspections are not rare events reserved for bad actors, and they can be triggered randomly.
The quiet trap is the employer-specific permit. Because the permit names the employer, a worker who moves to a different company normally needs a new work permit before starting. Promotions and location changes need thought too, since a genuine change of occupation may fall outside what the permit authorizes. If your business restructures, review the permits before the org chart goes live. We cover the ongoing duties in more depth in our guide to employer immigration compliance in Canada.
From temporary worker to permanent resident
Many employers eventually want to retain the worker permanently, and Canadian work experience is valuable currency in the permanent residence system. The main general routes include Express Entry, the Provincial Nominee Programs, and the Rural Community Immigration Pilot. Each has its own criteria, and some involve an employer role while others do not.
Raise this early rather than at the eleventh hour. Permit expiry dates arrive faster than permanent residence processing does, and a worker who starts planning eighteen months out has options that a worker with sixty days left may not.
Frequently asked questions
Do I need an LMIA to hire any foreign worker?
No. The LMIA applies under the Temporary Foreign Worker Program, but the International Mobility Program covers a wide set of LMIA-exempt work permits. Check the exemption categories first, including intra-company transfers, CUSMA professionals, and Francophone Mobility, before starting an LMIA.
My candidate has a post-graduation work permit. What do I need to file?
Generally nothing. A worker holding a valid open work permit, including a post-graduation or spousal open work permit, can usually work for most Canadian employers without any new employer-side authorization. Confirm the permit is valid and carries no employer or occupation restriction, then document what you verified.
How much does it cost the employer?
Under the LMIA route the application fee is generally $1,000 per position and is non-refundable. Under the International Mobility Program the employer compliance fee is generally $230. These are government fees only, and they change, so verify current amounts before filing.
Can my foreign worker switch to a different role in my company?
Not automatically. Most LMIA-based work permits are employer-specific and tie the worker to a named employer, occupation, and location. A genuine change of occupation may require a new work permit, and changing employers normally does. Assess the change before it takes effect.
How long do I have to keep employment records?
Six years. Employers must retain documents showing compliance with their obligations under IRPR ss. 209.2 to 209.4, and inspections can occur during that window. Keep payroll, the signed employment agreement, the rights information you provided, and evidence of the duties actually performed.
The bottom line
Hiring a foreign worker in Canada is a sequence, not a single application. Define the role and occupation carefully, test the hire against the LMIA-exempt categories before assuming you need an LMIA, complete your employer step, and only then hand off to the worker. Then treat compliance as an ongoing operating requirement rather than a closing task, because the six-year recordkeeping window and inspection powers are real.
Policy in this area changes frequently, and 2026 has been no exception. Verify fees, wage thresholds, and stream requirements against the current government postings before you commit. If you are hiring your first foreign worker, or your last one raised questions you could not answer, book a consultation and we can map the route before you spend anything.
Disclaimer: This article is for general information only and is not legal advice. Immigration law and IRCC/ESDC policy change frequently, and every case turns on its own facts. Reading this article does not create a lawyer–client relationship. Obtain advice tailored to your situation before you act.
Talk to a Canadian immigration lawyer. BridgePoint Law advises individuals and businesses across Canada — and on Canada–US–China cross-border matters — on hiring foreign workers and work permits. Book a consultation with our team in Toronto and Kingston. We work in English, Mandarin, and Cantonese.
