Temporary Foreign Worker Program Sets Low-Wage LMIA Rules

Temporary Foreign Worker Program requirements for low-wage positions require Canadian employers to meet detailed rules on recruitment, wages, job conditions, fees, housing, transportation and workplace protections before hiring a foreign worker through a Labour Market Impact Assessment.

Temporary Foreign Worker Program Update

Under the Temporary Foreign Worker Program, the offered job must be full time, meaning at least 30 hours of work per week. Employers must also demonstrate that the business and job offer are legitimate and that reasonable efforts were made to hire or train Canadians and permanent residents first.

Who is considered the employer under the program

Employment and Social Development Canada says the employer is the person, business, corporation or organization that hires the temporary foreign worker, sets the working conditions and directly pays the worker.

When assessing an LMIA application, Service Canada may consider who benefits from the work, who decides where and how the work is performed, who pays wages, who defines job duties, who monitors performance and who has the authority to dismiss the worker. It may also examine who signs the employment agreement and how the parties handle payroll deductions and statutory benefits.

This employer-employee relationship must be reflected in the employment agreement signed by both parties on or before the worker’s first day. Staffing or employment agencies that recruit workers for another business are not considered the employer for the purposes of hiring a temporary foreign worker for that business.

Independent contractor classification is not permitted

Employers cannot reclassify a temporary foreign worker as an independent contractor after hiring or structure the relationship to avoid payroll, compensation or Temporary Foreign Worker Program requirements.

Service Canada says misclassification can weaken wage protections, avoid required deductions and violate federal or provincial employment laws. Employers that fail to comply may face administrative monetary penalties, a ban from the program or public naming on government websites.

Prioritized occupations do not override refusal rules

Under the Temporary Foreign Worker Program, the low-wage stream prioritizes certain occupations considered essential across most provinces and territories. The list includes numerous health-care occupations, butchers and meat cutters, cleaners, agricultural workers, fish and seafood plant workers and food-processing labourers.

Quebec has a separate list of occupations specific to the province. The government also states that any refusal-to-process rule takes precedence over prioritization. Being in a prioritized occupation therefore does not guarantee that an LMIA application will be processed.

LMIA processing fee and representative rules

Employers generally must pay a processing fee of $1,000 for each position requested in an LMIA application. The fee is not refundable if the application is withdrawn, cancelled or receives a negative decision. A refund is issued only when the fee was collected in error.

The processing fee cannot be paid by or recovered from the temporary foreign worker. Employers also cannot recover the cost of a paid third-party representative from the worker.

Paid representatives must be authorized to provide immigration advice or collect payment for their services. They may include members in good standing of a Canadian law society, the Chambre des notaires du Québec, the Law Society of Ontario as a paralegal or the College of Immigration and Citizenship Consultants.

Unpaid representatives may assist employers but cannot charge or receive payment for those services. Employers using a representative must identify that person in the LMIA application, and Service Canada may contact the employer directly to verify information.

Recruitment requirements for low-wage positions

Before applying for an LMIA, employers must advertise on the Government of Canada’s Job Bank unless they provide a written explanation for using another method. They must also demonstrate recruitment efforts aimed at youth aged 15 to 30.

Employers must use at least two additional recruitment methods consistent with the occupation. Each method must target a different underrepresented group, such as Indigenous peoples, newcomers to Canada, persons with disabilities, vulnerable youth or asylum claimants with valid work permits.

Using a provincial or territorial counterpart to Job Bank may count as a recruitment method, but it does not satisfy the separate requirement to target an underrepresented group.

Job Match and Direct Apply obligations

When advertising on Job Bank, employers must use the Job Match service and select the default or basic matching option. For a low-wage position, employers must invite job seekers matched during the first 30 days of the advertisement to apply when they receive a rating of two stars or more.

Job Bank’s Direct Apply function allows authorized job seekers in Canada to submit resumes directly. Employers must consider applications received through Direct Apply. Disabling the feature or failing to consider applicants may mean the employer has not met the recruitment requirements.

Advertising duration and records

The advertisement must have appeared during the three months before the LMIA application and must run for at least eight consecutive weeks within that period. At least one of the three recruitment activities must remain ongoing until Service Canada issues a positive or negative LMIA decision.

Employers must retain recruitment and advertising records for at least six years. They may also be asked to provide recruitment results, copies of advertisements, information about where and when the job was advertised and proof that the advertising reached an audience with the required skills or experience.

Wages must meet the prevailing wage

Employers must offer a wage similar to what Canadian and permanent resident employees receive for the same job and work location when they have comparable skills and experience.

For the Temporary Foreign Worker Program, the prevailing wage is the higher of the Job Bank median wage or the wage within the range paid to the employer’s current employees in the same job and location with similar skills and experience.

Employers should use Job Bank’s wage comparison tool and search by the job title or National Occupational Classification code that best matches the position. If a local median wage is unavailable, the employer may need to consult the provincial or territorial wage and, if necessary, the national wage.

Only guaranteed wages are considered for the wage rate. Overtime, tips, benefits, profit sharing, bonuses, commissions and other forms of compensation are excluded. Unionized positions must offer the wage rates and compensation established under the applicable collective agreement.

An employer offering less than the prevailing wage will not meet the wage factor for the assessment and will receive a negative LMIA decision.

Low-wage worker caps and refusal-to-process rules

There is generally a 10% cap on the proportion of temporary foreign workers in low-wage positions at a specific work location. Applications above the applicable cap may not be processed.

A 20% cap applies to certain sectors and occupations, including construction, food manufacturing, hospitals, nursing and residential care facilities and specified in-home caregiver positions.

Employers with fewer than 10 employees at a work location must complete the cap section of the LMIA application. Under the calculation method described by the government, such an employer may employ a maximum of one low-wage temporary foreign worker under a 10% cap or two under a 20% cap.

Some positions have no cap. These include specified on-farm primary agriculture positions, certain caregiving positions in health-care institutions, positions supporting permanent residence applications where no work permit is requested, qualifying short-duration or highly mobile jobs and certain seasonal low-wage positions lasting no more than 270 calendar days.

Separate refusal-to-process rules apply to certain low-wage positions in census metropolitan areas with an unemployment rate of 6% or higher. The rule applies where the wage is below the applicable provincial or territorial hourly wage threshold, subject to listed exemptions.

Recruitment fees cannot be charged to workers

Employers must ensure that neither they nor anyone recruiting on their behalf charges or recovers recruitment fees from temporary foreign workers, directly or indirectly. These costs may include representative services, advertising, assistance finding employment or advice related to hiring foreign nationals.

A failure to meet this requirement can result in a negative LMIA decision. Employers are also responsible for the actions of recruiters working on their behalf and must comply with any additional provincial or territorial rules governing recruiters.

Other employer responsibilities

Employers that have not employed a temporary foreign worker during the previous six years will be subject to a review to determine whether they made reasonable efforts to provide an abuse-free workplace and were not affiliated with an ineligible employer or an employer that is in default of an administrative monetary penalty.

The full low-wage position requirements under the Temporary Foreign Worker Program also address transportation, housing, health insurance, workplace safety, employment agreements, language of work and unionized positions. Employers should review each requirement that applies to the specific job, location and worker before filing an LMIA application.

The rules do not guarantee an approved LMIA or a work permit. Service Canada assesses each application against the applicable program requirements and may request supporting documents, including payroll records and recruitment evidence.

Frequently Asked Questions

Fact-Checked: Fact-checked against Employment and Social Development Canada’s official low-wage Temporary Foreign Worker Program requirements page accessed September 22, 2026.

Disclaimer: This article summarizes federal program requirements and is not legal advice. Requirements may vary by occupation, location and application circumstances.