How to Hire Foreign Workers for Your Business in Canada

How to Hire Foreign Workers for Your Business in Canada

Bringing Foreign Workers for Your Business In Canada

The Canadian government offers several immigration programs designed for hiring foreign workers. To start the process, it is essential to be aware of all the immigration methods available to employers.  If you are a Canadian employer looking to hire foreign workers for your business, follow these 4 basic steps to hiring temporary foreign workers:

  • First, find out if your company requires an LMIA;
  • Second, get an LMIA or submit an LMIA-exempt offer of employment;
  • Third, have the worker apply for a work permit; and
  • Fourth, tell the worker what to expect from their application and ensure compliance with the conditions of employment.

1. Find Out if Your Company Requires an LMIA

Most employers need an LMIA before they can hire a temporary foreign worker. Before you start the hiring process, you must determine if you need an LMIA. In certain situations, employers are not required to apply for an LMIA but must submit an offer of employment through their Employer Portal on the IRCC’s website. Their foreign workers can then apply for a work permit based on an LMIA-exempt offer of employment. In certain cases, foreign workers are allowed to work in Canada without a work permit.

You should refer to the table below that covers some of the most common scenarios to see which procedure your company should consider. The table is not legal advice and is provided as general information only. Get in touch with us to discuss your company’s specific hiring needs.

LMIA and Work PermitNo LMIA – Work Permit OnlyNo LMIA, No Work Permit
Most jobs in Canada require LMIAIntra-company transfereesBusiness visitors
High-wage workersEntrepreneurs and self-employed individualsAthletes and team members
Low-wage workersHighly skilled professionalsAviation accident or incident inspector
Occupations in high demandCitizens of the USA, Mexico, Chile, Peru, South Korea, Columbia, Panama, Australia, Singapore, New ZealandCivil aviation inspector
Citizens of most of the European Union countriesClergy
French-speaking foreign workersConvention organizers
Religious Workers andCrew
AcademicsEmergency service providers
Examiners and evaluators
Expert witnesses or investigators
Foreign government officers
Foreign representatives and family members of foreign representatives
Health care students
Judges, referees and similar officials
Military personnel
News reporters, media crews
Performing artists
Public speakers

2. LMIAs and How to Hire a Foreign Worker with LMIA

The process for hiring foreign workers varies in length, depending on the type of job you are trying to hire for.  A work permit that requires an LMIA may take anywhere from 3 months to 6 months. Meanwhile, an LMIA-exempt work permit takes anywhere from 2 weeks to 3 months, assuming the foreign workers your business wishes to hire are on top of their paperwork. A position that doesn’t require a work permit could be faster since all it takes is a visa in good standing.

LMIA is short for Labour Market Impact Assessment, and Employment and Social Development Canada (ESDC) requires it for any position, not in an exempt category. Your company needs a positive LMIA to prove no Canadian citizen or permanent resident can fill that position. The application process is highly technical and may be complex, but in general, here is the 6-step guide on how to hire foreign workers with LMIA:

Step 1: Advertise the position

two people looking at papers

Your company must advertise the position on the Government of Canada’s Job Bank and 2 alternative sources (one national and 1 local at scope). Before the advertising being posted, it is important to carefully review the draft job advertisements to ensure that all required details are included. Your company must include proof of advertisement showing where, when, and for how long the position was advertised. Your company must continue advertising on JobBank and reviewing applicants until you get a decision on your LMIA application. Please note that there may be modifications in the process based on your company’s situation

Step 2: Follow the recruitment process

Your company must demonstrate genuine efforts to recruit Canadian citizens or permanent residents. How to do that? Follow your usual recruitment procedures (collecting resumes, screening, selecting the best candidates for the interview and interview process), but make sure to document all your efforts. Some employers produce requirement efforts reports to include with their LMIA applications, summarizing each applicant’s background and reasons for rejecting him/her for the position in question. You must keep records of your recruitment and advertising efforts for a minimum of 6 years. You will also be asked to provide the results from the recruitment efforts you undertook to fill the position.

Step 3: Submit an application to ESDC

Your LMIA application can be submitted up to six months before the expected job start date. Your application package should include the following documents:

Once you submit your LMIA application, ESDC will process your payment and issue you a letter with an LMIA file number. The LMIA processing time is different for each stream and ranges from 10 business days to several months.

Step 4: Pass an interview with ESDC

Next, you must pass a phone interview with an ESDC LMIA officer. The purpose of the conversation is to confirm the LMIA application information, review any changes that may have occurred since the submission, discuss the recruitment campaign and its results.

Step 5: Receive a decision

Following the interview, the officer will make the decision, usually within 3-5 days. Your decision will be e-mailed or mailed to you. If you wish to receive your decision by email, indicate that to the ESDC officer during the interview. If the decision is positive, your foreign worker can start the work permit application process. If the decision is negative, and you believe that it is unreasonable, you may be able to ask a Program Manager to review that decision for correctness. Contact us if you need help with it.

Step 6: Assist the worker to apply for a Work Permit

Once you receive a positive decision, the foreign workers you intend to hire can apply for work permits using the LMIA approval letter and Annex A. You should also provide the worker with a signed employment contract, and a Letter of Support for the Visa Office to support your worker’s work permit application.

In some instances, your business is exempt from the advertising and recruitment requirements. These cases are based around occupations, such as owner-operator, highest demand occupations, and short-term positions. ESDC exempts these cases based on their potential impact on the labour market in the long term.

ESDC averages anywhere from 3 to 6 months to reach an LMIA decision, unless your company position falls in one of the expedited streams. These streams include highest-demand occupations, highest-paid occupations, and shortest-duration occupations. Using one of these can return an LMIA decision in 10 days.

Incomplete LMIA applications are not processed or returned. This process can cause your company delays, which in turn affect your workforce. Your business should seek professional help to ensure this does not happen with your LMIA application.

Get in touch with us if you need assistance with your LMIA application.

person handing pen over contract

3. Get LMIA-Exempt Work Permits

Sometimes, the LMIA-exempt work permits offer a simpler and more straightforward process, so employers in Canada should consider if their company is eligible to hire foreign workers without the need of going through the lengthy and demanding LMIA process.

Here is the list of some of the most popular immigration programs that allow employers to hire foreign workers without the need to apply for an LMIA first.

Intra-Company Transferees (ICT)

Multinational companies can temporarily transfer employees to their Canadian locations without requiring an LMIA. If your company requires skilled talent from your other affiliate companies abroad, the ICT work permit category can be a good option. Only employees, who have worked for the company for at least 1 year on a full-time basis and hold specialized knowledge or an executive or managerial position may qualify under this program. ICT Specialized Knowledge worker must possess both “knowledge at an advanced level of expertise” and “proprietary knowledge of the company’s product, service, research, equipment, techniques or management”. See IRCC’s guidance below for further details.

Francophone Skilled Workers

If your business is located outside of the Province of Quebec and if your foreign worker communicates fluently in French, then you should consider applying for the Francophone Mobility Program (Mobilité Francophone Canada). To be eligible for this program, your business and your foreign worker must meet the following requirements:

  • The foreign worker is fluent in French at CLB 7 level (Canadian Language Benchmark). Test d’évaluation de français (TEF) or Test de connaissance du français (TCF) may be required, if the worker is from a country where French is not the official language.
  • The employment of the foreign national is located in a province or territory other than Quebec.
  • The job offer is in a skilled occupation (NOC 0, A or B) and the foreign worker is qualified to perform the duties of the position.

French is the official language in 29 countries, which puts it in second place behind English. The 29 countries are, in alphabetical order: Belgium, Benin, Burkina Faso, Burundi, Cameroon, Canada, Chad, the Ivory Coast, the Democratic Republic of the Congo, Djibouti, Equatorial Guinea, France, Haiti, Luxembourg, Madagascar, Mali, Monaco, Niger, Rwanda, Senegal, Seychelles, Switzerland, Togo and Vanuatu.

International Trade Agreements

Canada is a signatory to several international Free Trade Agreements (FTAs) that contain provisions to make it easier for skilled professionals to work temporarily in Canada. Most of the FTAs allow 4 categories of foreign workers to work in Canada without the need to apply for an LMIA: business visitors, professionals, intra-company transferees, and traders and investors.

If your foreign worker is a national of the following countries, you may be eligible to apply for an LMIA-exempt work permit:

International Experience & Youth Exchange Programs

Canada also participates in some international youth exchange and professional employment programs that allow young professionals under the age of 35* (for some countries under 30) to travel and work in Canada without requiring an LMIA.

If your foreign worker is under 35 and a national of the participating country, you may choose to support his/her application under the Young Professionals program. However, keep in mind that this program operates on an Expression of Interest/Invitation to Apply model. Your foreign worker must first create an IEC profile and receive an Invitation to Apply (ITA) from the IRCC before he/she may apply.

Each country that participates in the International Experience Canada program has a specific number of positions available every year and once all positions are filled, candidates can no longer apply that year. Usually, registrations open in December for the following year and positions for some countries may be filled within a few hours after the opening. That’s why it is important to check the country quotas and encourage your foreign workers to register a profile as early as possible.

Here’s the full list of participating countries in the International Experience Canada (IEC) work permit program:

  • Australia, Austria, Belgium, Chile, Costa Rica, Croatia, Czech RepublicDenmark Estonia, France Germany, Greece, Hong Kong, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, San Marino, Slovakia, Slovenia, South Korea, Spain, Swede, Switzerland Taiwan, Ukraine, United Kingdom.

Significant Benefit Work Permits

Significant Benefit Work Permits are often seen as a last resort, particularly for individuals who have no other choice than to request such a work permit due to circumstances outside of their control. To benefit from this program, your company needs to prove that a foreign worker will bring an important social, cultural, or economic benefit to Canada. This program may be a good option to bring workers with highly specialized knowledge that will contribute to the Canadian economy through their specialized skills and experience. For example, technical workers, creative and performing artists, self-employed engineers, etc. Also, keep in mind that this type of work permit is typically issued for shorter durations.

Reciprocal Employment

This exemption allows foreign workers the opportunity to work in Canada in specific industries where Canadians have similar opportunities in other countries. For example, professional athletes and coaches working with the Canadian team, professors, guest lecturers, and students participating in exchange programs.

Multinational corporations can also take advantage of this type of work permit. To qualify, the employer must demonstrate that reciprocity exists. This can be demonstrated by an employment contract (if it provides evidence of reciprocity), an HR Global Mobility Policy, and/or other documents that show that Canadian foreign workers benefit from the ability to travel abroad within the company.

Contact us for advice on whether your company can use this process.

4. Working Without A Work Permit

In several situations, your foreign talent can perform work in Canada without needing to secure a Work Permit. However, depending on the country of origin, the worker may still require an entry visa to Canada to enter Canada temporarily.

Foreign nationals may perform work in Canada without a work permit in the following scenarios:

  • Business Visitors
  • Athletes and team members
  • Aviation accident or incident inspector
  • Civil aviation inspector
  • Clergy
  • Convention organizers
  • Crew
  • Emergency service providers
  • Examiners and evaluators
  • Expert witnesses or investigators
  • Foreign government officers
  • Foreign representatives and family members of foreign representatives
  • Health care students
  • Judges, referees and similar officials
  • Military personnel
  • News reporters, media crews
  • Performing artists
  • Public speakers

Business Visitors

A business visitor is someone who comes to Canada for international business activities (looking for ways to grow business, invest or develop new business relationships), but without directly entering the Canadian labour market. For business visitors in Canada, the applicants must show the following:

  • The primary source of the worker’s compensation will remain outside of Canada
  • The principal place of employment is located outside of Canada

Activities that business visitors may conduct in Canada without a work permit:

  • Giving after-sales service (managing, not doing hands-on labour)
  • Undergoing training or training employees of a Canadian branch of a foreign company
  • Buying Canadian goods or services for a foreign business or government
  • Taking orders for goods or services
  • Going to meetings, conferences, conventions or trade fairs

After Sales Service

After-sales service providers may come to Canada to repair, service, set up, test or supervise work on specialized commercial or industrial equipment purchased or leased outside Canada.

Such services must be detailed in the related service contracts that have been negotiated as part of the original sales, lease or rental agreement, or they must be an extension of the original agreement. Individuals coming to Canada to train users or maintenance staff in the operation of specialized equipment may also qualify under this category.

Athletes and Team Members

Professional or amateur athletes may travel to Canada to participate in sports activities or events in Canada either individually or as part of a team. IRCC gives the following examples of individuals who may be eligible under this exemption:

  • amateur players on Canadian teams (includes major junior a level and lower teams)
  • foreign pet owners entering their animals in a show (e.g. dog handlers)
  • jockeys racing horses from foreign-based stables
  • racing car drivers
  • individuals attending professional team tryouts
  • foreign coaches and trainers of foreign athletes
  • other essential team members participating in events in Canada

Sobirovs Law Firm Is Here To Help

Determining which criteria your company needs to meet to hire foreign workers is challenging. There are a half dozen different types of work permits that have differing requirements. Unless your company is hiring a specific category of individuals, you should plan on going through the LMIA process until other legal advice is received.

Book Your Consultation

Hiring foreign workers to work for your company in Canada can be a complex and nuanced process. Sobirovs Law Firm is here to help with years of experience across all aspects of this business action. We can help you decide which options are best for your business and take you through the process with minimal hassles.

The contents of this page should not be used as legal advice. Please seek assistance from a registered attorney if you are considering hiring foreign workers.