In most cases, before any employer in Canada can hire a foreign worker, they have to get a Labour Market Impact Assessment (LMIA). A positive LMIA, sometimes referred to as a confirmation letter, proves that the employer tried and failed to find a Canadian Citizen or Permanent Resident to fill a position, so they need to hire a foreign national. 

Most work permit applications are closed work permits, which require a positive LMIA. When foreign nationals apply for a Canadian work permit, they need to have a positive LMIA. However, there are some exceptions. A closed work permit is issued to a foreign worker to work in a specific position and for the specific employer that is listed on the LMIA for a specific period of time. 

An open work permit, on the other hand, lets foreign workers work in any position, for any employer, anywhere in Canada. Since open work permits are not restricted to an occupation or employer, they do not require an LMIA. You also do not need to have a job offer to apply for an open work permit.

Closed LMIA-exempt allows foreign workers to work for a specific employer in a specific position, but does not require an LMIA.

LMIA EXEMPTIONS CLOSED LMIA-EXEMPT WORK PERMITS

Closed LMIA-exempt work permits authorize a foreign national to work in a specific position for a specific employer, but don’t need a positive LMIA. Usually, whether or not a closed work permit is LMIA-exempt depends on the nature of the job.

There is an extensive list of LMIA exemptions, below are some of the more common ones.

ENTREPRENEURS & SELF-EMPLOYED

Foreign nationals who want to work for themselves or operate their own business temporarily in Canada need to demonstrate that their business would generate significant economic, social, or cultural benefits for Canadian citizens or permanent residents to be granted a LMIA exemption.

INTRA-COMPANY TRANSFEREES

International companies can temporarily transfer employees to a Canadian branch without requiring an LMIA.

FRENCH-SPEAKING SKILLED WORKERS

French-speaking skilled workers who have a valid job offer in a province or territory outside of Quebec may be exempted from needing an LMIA.

SIGNIFICANT BENEFIT

The significant benefit exemption can be applied if you will bring an important social or cultural benefit to Canada.

INTERNATIONAL YOUTH EXCHANGE PROGRAMS

Canada also participates in some international youth exchange programs that allow young people to travel and work in Canada without requiring an LMIA. For instance, the Young Professionals category of International Experience Canada is for individuals with a job offer in Canada that contributes to their professional development.

INTERNATIONAL AGREEMENTS

Canada has signed some reciprocal agreements with various countries that allow citizens to work without needing an LMIA in some circumstances.

INTERNATIONAL TRADE AGREEMENTS

Some international Free Trade Agreements (FTAs) contain provisions to make it easier for business people to work temporarily in the signed countries. While foreign workers covered by an applicable FTA still usually need a closed work permit, they are exempt from the LMIA requirement. The North American Free Trade Agreement (NAFTA) and the new Canadian-European Trade Agreement (CETA) are both examples.

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