Understanding LMIA Closed Work Permits in Canada (2025 Edition)
Canada’s economy thrives in part due to its strong immigration policies, and foreign workers play a crucial role in supporting many industries. If you're a foreign national hoping to work in Canada, or an employer looking to hire from abroad, one term you'll frequently come across is LMIA, and more specifically, a closed work permit based on LMIA approval.
This article will explain everything you need to know about LMIA closed work permits, how the application and approval process works in 2025, reasons for rejection, and finally, how income levels like the Federal Poverty Line (FPL) or LICO (Low-Income Cut-Off) factor into Canadian immigration policies.
What is an LMIA?
LMIA stands for Labour Market Impact Assessment. It’s an official document issued by Employment and Social Development Canada (ESDC) that allows a Canadian employer to hire a foreign worker when there’s no Canadian citizen or permanent resident available to fill the job.
Think of the LMIA as a permission slip from the Canadian government, confirming that the employer has a legitimate need to hire from abroad.
What is a Closed Work Permit?
A closed work permit ties a foreign worker to:
- A specific employer
- A specific job
- A specific location
In contrast to open work permits (where you can work for any employer), closed permits are restrictive but often essential for people coming to Canada through job offers.
Who Needs an LMIA-Based Closed Work Permit?
You’ll need one if:
- You’re coming to Canada for a job offer from an employer who is not exempt from LMIA requirements.
- Your job offer does not fall under an international trade agreement (like NAFTA or CETA), an intra-company transfer, or a post-graduate work permit.
LMIA Application Process: Step-by-Step in 2025
Here’s a breakdown of how the LMIA and work permit process typically goes:
1. Employer Applies for an LMIA
The employer must apply to ESDC through the Temporary Foreign Worker Program (TFWP). They must prove:
- The job offer is genuine.
- They tried to hire Canadians first (through advertising and outreach).
- They’re offering fair wages and working conditions.
The application includes details like salary, job duties, work location, and duration of employment.
2. ESDC Evaluates the Application
ESDC assesses if hiring a foreign worker will have a positive, neutral, or negative impact on the labor market. A positive LMIA means the job can’t easily be filled locally and the foreign worker is needed.
The employer also must meet compliance history requirements — meaning they must have followed labor laws and program rules in the past.
3. LMIA Result: Approval or Rejection
- If approved: The employer gets a positive LMIA letter (a.k.a. confirmation letter).
- If denied: The employer will receive reasons for the rejection.
4. Foreign Worker Applies for the Work Permit
Once the employer has the LMIA, the foreign worker can apply for a closed work permit through Immigration, Refugees and Citizenship Canada (IRCC). They'll need:
- The LMIA confirmation number
- A copy of the job offer
- Supporting documents (passport, qualifications, police certificates, etc.)
Essential Documents for a Closed Work Permit (Worker’s Side)
1. Valid Passport
- Must be valid for the entire duration of the work permit you're applying for.
- Include copies of all pages with stamps/visas (recommended).
2. Job Offer Letter / Employment Contract
- Provided by the Canadian employer.
- Must include job title, duties, salary, work hours, and conditions.
- Should match the details in the LMIA.
3. LMIA Document
- Copy of the LMIA approval letter (Confirmation Letter) from ESDC.
- Job Offer Number associated with the LMIA (issued through the Employer Portal, if applicable).
4. IMM 1295 – Application for Work Permit
- This is the official work permit application form.
- Must be filled out completely and truthfully.
5. IMM 5645 – Family Information Form
- Required for most applicants.
- Lists immediate family members, even if they’re not traveling with you.
6. IMM 5409 – Statutory Declaration of Common-law Union (if applicable)
- If you are bringing a common-law partner.
Supporting Documents
7. Proof of Work Experience
- Letters of reference from previous employers.
- Must include position, duties, duration, and employer contact info.
- Helps prove you're qualified for the job offered in Canada.
8. Educational Certificates or Diplomas
- Proof of qualifications required for the job (where applicable).
9. Resume / Curriculum Vitae (CV)
- A summary of your work and education history.
10. Language Test Results (optional, but helpful)
- Especially if the job requires English/French fluency.
- IELTS or CELPIP for English; TEF for French.
Proof of Financial Support
- You may be asked to show proof of funds to support yourself upon arrival.
- Bank statements, pay stubs, or a support letter from your employer.
Medical Exam (if required)
- A medical exam by an IRCC-approved panel physician may be necessary if:
- You’ll work in healthcare, childcare, or with vulnerable populations.
- You’ve lived in a designated country for 6+ months in the past year.
Documents to include:
- Proof of medical exam or upfront medical exam form (IMM 1017B).
Police Certificates
- Required for applicants aged 18+ from countries you’ve lived in for more than 6 months.
- Helps assess admissibility to Canada.
Digital Photo
- According to IRCC photo specifications (head and shoulders, white background, size 35mm x 45mm).
Visa Application Fees
- Proof of payment for the work permit application fee (CAD $155) and, if applicable, biometrics fee (CAD $85).
Biometrics
- After submitting your application, you'll receive a request to give fingerprints and a photo at a Visa Application Centre (VAC).
Letter of Explanation (optional but helpful)
- Explains your purpose, job role, and future plans.
- Useful if your case is unique or has any complications.
Spouse/Dependent Applications (if applicable)
If you're bringing a spouse/common-law partner or children:
- Spouse’s application form (IMM 1295)
- Marriage certificate or proof of relationship
- Child's birth certificate
- School registration (if children are school-aged)
5. IRCC Decision: Work Permit Approval or Refusal
IRCC will look at:
- The worker’s qualifications
- Whether they’re admissible (criminal record, health issues, etc.)
- If the job offer and LMIA meet Canadian standards
If all goes well, the applicant receives a work permit tied to that specific employer.
2025 Updates and Changes to the LMIA Process
In 2025, Canada introduced several important updates to the LMIA process due to economic shifts and labor market trends:
1. Restrictions Based on Unemployment Rates
If a region (like a major city) has unemployment above 6%, certain low-wage LMIA applications will not be processed. This is designed to protect local workers by prioritizing their employment first.
2. Changes to Employment Duration
- For low-wage workers, the maximum duration of employment has been reduced from 2 years to 1 year.
3. Sector-Based Caps
Some industries can only hire a certain percentage of their workforce from abroad. In 2025:
- Most sectors have a 10% cap on low-wage foreign hires.
- Exceptions (like healthcare, construction, agriculture) are allowed up to 20%.
4. Refusal to Process Rules
Employers in certain industries or who fail to meet conditions (like not advertising the job properly) may receive a refusal to process letter, even before a full review.
5. No More Work Permit Applications from Visitors
In 2024, Canada allowed visitors to apply for work permits from inside Canada (COVID-era flexibility), but this ended in September 2024. Now, foreign nationals must apply from outside Canada unless they’re already on a valid permit.
Reasons Why LMIA Applications Get Rejected
Not all applications are successful. Here are common reasons for LMIA rejections in 2025:
1. High Unemployment in the Region
If local workers are available, ESDC will deny the LMIA.
2. Employer Didn’t Recruit Properly
Failing to advertise the job for at least 4 weeks, or not using required recruitment platforms like Job Bank, will lead to rejection.
3. Job Offer Below Market Wage
Offering a wage lower than what’s common in that region or sector is a red flag.
4. Employer Non-Compliance History
If an employer was previously penalized for mistreatment or underpayment of workers, ESDC might deny future applications.
5. Position Ineligible for TFW Program
Jobs in industries like sex work, escort services, or massage parlors are not eligible.
6. Ministerial Instructions
In some cases, political or economic considerations may temporarily freeze LMIA applications in certain areas or sectors.
Work Permit Rejections: What Can Go Wrong?
Even with a positive LMIA, the foreign worker’s application can still be denied by IRCC. Why?
- Criminal history or medical inadmissibility
- Incomplete documents or false information
- Concerns about intention to leave after the work permit ends (especially if applying from a country with high overstay rates)
What Happens After LMIA Work Permit Approval?
If successful, you’ll receive:
- A Letter of Introduction (LOI) if applying from outside Canada
- The actual work permit at the port of entry, valid for the job, employer, and duration listed
Once in Canada, foreign workers can apply for extensions, permanent residency through Express Entry, or employer-sponsored PR (like Provincial Nominee Program).
FPL (Federal Poverty Line) in the Canadian Immigration Context
In the U.S., FPL is a standard measure of household income used to determine eligibility for certain programs. While Canada doesn’t officially use the term FPL, it uses similar concepts:
1. LICO (Low-Income Cut-Off)
LICO is used in programs like sponsorship to prove that a person has enough income to support a spouse or dependent.
2. Minimum Necessary Income (MNI)
This is especially relevant for:
- Parent/Grandparent sponsorship
- Startup Visa program
- Refugee or humanitarian claims
If you’re sponsoring a family member, your income must meet or exceed the Minimum Necessary Income (MNI), which is roughly aligned with the FPL concept.
These income thresholds are updated annually and vary based on household size.
Final Thoughts: Is an LMIA Closed Work Permit Right for You?
For Employers: If you're in need of a specific skillset and can’t find qualified workers locally, the LMIA process is your gateway to recruiting international talent. Just be sure to follow the rules, recruit fairly, and treat foreign workers properly.
For Workers: A closed LMIA work permit is often a stepping stone to Canadian permanent residence. It’s a great way to enter the country, gain work experience, and build a life in Canada — but it requires patience, accuracy, and a strong application.
If your application is rejected, don’t lose hope. You can reapply with better documentation or explore other pathways like Express Entry, PNPs, or LMIA-exempt options.
