Employer-specific work permit (LMIA)

How BC law treats it

Immigration is federal law. Work permits are issued by Immigration, Refugees and Citizenship Canada (IRCC) under the Immigration and Refugee Protection Act, SC 2001, c 27 and the Immigration and Refugee Protection Regulations, SOR/2002-227. An employer-specific (closed) permit names the employer, the occupation and often the work location, and the worker cannot work elsewhere without a new permit. The usual route starts with the employer applying to Employment and Social Development Canada (ESDC) for a Labour Market Impact Assessment (LMIA). ESDC assesses whether hiring the foreign national will have a positive or neutral effect on the Canadian labour market, considering wages, recruitment efforts and working conditions. The Global Talent Stream offers faster processing for certain in-demand technology occupations and referred innovative companies. With a positive LMIA, the worker applies to IRCC for the permit. Some categories are LMIA-exempt, including intra-company transferees and professionals under the Canada-United States-Mexico Agreement (CUSMA). Employers in LMIA-exempt cases generally submit an offer of employment through IRCC's employer portal and pay a compliance fee. Employers must comply with the conditions of the LMIA or offer of employment, including wages and duties. IRCC and ESDC conduct compliance inspections, and breaches can lead to administrative monetary penalties, bans from hiring foreign workers and publication of the employer's name. Program rules, wage thresholds and processing streams change often.

What it means for your business

BC technology and growth companies often need foreign talent. An H-1B is a US authorization and is useless for working in Canada. The right Canadian route depends on the role, the worker's nationality and the company's structure. Choosing the wrong stream causes delay, and breaching permit conditions after hiring can bar the company from the program. Plan hiring timelines around LMIA and permit processing. Example: A Vancouver software startup wants to hire a senior developer from Brazil. It applies through the Global Talent Stream with a labour market benefits plan, and once the LMIA is approved the developer applies for an employer-specific work permit.

Risks and common mistakes

Assuming a US H-1B or US work authorization allows work in Canada. Letting a foreign worker start before the work permit is issued. Changing the worker's duties, wages or location without checking whether a new permit is needed. Failing to keep records that prove compliance with the LMIA or offer of employment conditions. Missing an LMIA-exempt category, such as an intra-company transfer, that would avoid the LMIA process.