Canada’s stable economy, skilled workforce, and immigrant-friendly policies make it one of the most attractive destinations for global companies. Whether expanding operations or hiring in Canada, understanding Canada’s work authorization process is critical to staying compliant with immigration laws and ensuring smooth onboarding for non-Canadian employees. Partnering with an Employer of Record can streamline the process, allowing companies to hire quickly without setting up a local entity. This approach ensures all employment contracts meet Canadian labor standards, work permits are secured efficiently, and payroll is handled in full compliance. For businesses entering the Canadian market, it provides a cost-effective and low-risk hiring solution.
Table of Contents
- Overview of Canada’s Work Permit and Visa System
- Understanding Requirements and Eligibility
- Who Needs a Work Permit in Canada
- Key Conditions for Obtaining a Canadian Work Permit
- Employer and Employee Eligibility
- Types of Work Permits in Canada
- Comparing Work Permit Types
- Advantages of LMIA-Exempt Permits
- Application Process for Employers
- Required Documents
- Processing Timelines
- Employer Responsibilities and Compliance
- Legal Obligations
- Consequences of Non-Compliance
- Maintaining Ongoing Compliance
- Tips for a Smooth Application Process
- How an Employer of Record Can Help
- How Asanify Can Help
- FAQs
Overview of Canada’s Work Permit and Visa System
Canada regulates foreign worker employment through Immigration, Refugees and Citizenship Canada (IRCC) and the Employment and Social Development Canada (ESDC). The requirements vary depending on the worker’s nationality, skill level, and the nature of the job.
- Canadian citizens and permanent residents – Can work without restrictions.
- Foreign nationals – Must obtain a work permit before starting employment, unless exempt.
- Employer-driven process – Many permits require the employer to first secure a Labour Market Impact Assessment (LMIA).
- Two main streams – LMIA-required and LMIA-exempt work permits.
- Visa + work permit – In many cases, applicants need both a work permit and a temporary resident visa (TRV) or eTA to enter Canada.
Understanding Requirements and Eligibility
Before applying, both employers and employees should understand Canada’s work authorization framework. The correct work permit type depends on the job role, skill category, and length of stay.
- Identify whether the position falls under LMIA-required or LMIA-exempt categories.
- Confirm if the worker’s nationality allows for special agreements (e.g., CUSMA/USMCA for U.S. and Mexican citizens).
- Ensure the employer meets Canadian labor standards and is not on the ineligible employer list.
Who Needs a Work Permit in Canada
Any non-Canadian citizen or permanent resident who wants to work in Canada generally requires a valid work permit.
- Citizens and permanent residents – No work permit required.
- Unauthorized work can lead to removal from Canada and future bans.
- Short-term work (under 30 days) in some professions may be exempt.
- Most permits are tied to a specific employer and role.
- Spouses or dependents may be eligible for open work permits.
Key Conditions for Obtaining a Canadian Work Permit
Applicants generally must:
- Have a valid job offer from a Canadian employer.
- Provide proof of qualifications or experience.
- Show evidence of financial support during their stay.
- Pass medical and security checks.
Employer and Employee Eligibility
Employers must be authorized to hire foreign workers and, in LMIA cases, prove the job cannot be filled by a Canadian citizen or permanent resident. Employees must meet the qualifications and licensing requirements for their role.
Key Points:
- Employer must have a valid business number and comply with wage laws.
- Some roles require professional licensing in Canada.
- LMIA exemptions apply to intra-company transfers, international agreements, and certain research roles.
- Non-compliance can lead to bans on hiring foreign workers.
Suggested Read: Labour Laws in Canada: Everything You Need to Know in 2025
Types of Work Permits in Canada
Canada offers two primary categories of work permits:
- Employer-specific work permit – Tied to a specific job and employer.
- Open work permit – Allows work for almost any employer in Canada.
Common programs include:
- LMIA-based work permits – Most common for foreign hires.
- International Mobility Program (IMP) – For LMIA-exempt categories.
- Post-Graduation Work Permit (PGWP) – For international graduates of Canadian institutions.
- Intra-Company Transfer (ICT) – For transferring employees from foreign branches.
Comparing Work Permit Types
| Permit Type | Purpose | Duration | Notes |
| Employer-specific | Job with one employer | Up to 2–3 years | Requires new permit for employer change |
| Open work permit | Work for any employer | Varies | Some restrictions apply (e.g., non-compliant employers) |
| LMIA-based | Fill labor shortages | Varies | Requires employer to prove need for foreign worker |
| LMIA-exempt | Specialized or exempt jobs | Varies | Includes CUSMA/USMCA and intra-company transfers |
Advantages of LMIA-Exempt Permits
These permits can be faster to obtain, reduce employer paperwork, and help companies hire without a formal labor market test.
- Useful for multinational transfers, trade agreements, or high-skilled talent.
- Often processed quicker than LMIA-based applications.
- May allow spouses to obtain open work permits.
Application Process for Employers
The employer initiates the process by either obtaining an LMIA from ESDC or, if LMIA-exempt, submitting an offer of employment through the IRCC Employer Portal. The worker then applies for a work permit online or at a visa office.
Required Documents
- Job offer letter or employment contract.
- Copy of the employer’s LMIA approval or exemption proof.
- Worker’s valid passport.
- Proof of qualifications and experience.
- Medical exam results (if required).
Processing Timelines
- LMIA processing: Around 8–12 weeks.
- Work permit issuance: 2–8 weeks, depending on location and category.
- Total time: Usually 2–4 months.
Employer Responsibilities and Compliance
Employers must comply with Canadian labor law, immigration, and employment standards.
Legal Obligations:
- Pay wages at or above the prevailing wage.
- Provide safe working conditions.
- Keep detailed records for compliance inspections.
- Notify authorities of job changes or early terminations.
Consequences of Non-Compliance:
- Heavy fines and penalties.
- Public listing on the IRCC ineligible employers list.
- Temporary or permanent bans on hiring foreign workers.
Maintaining Ongoing Compliance
- Track work permit expiry dates.
- Renew permits on time.
- Conduct internal compliance audits.
Tips for a Smooth Application Process
- Start the process early to account for LMIA timelines.
- Ensure job offers meet prevailing wage and job advertisement requirements.
- Verify whether the role qualifies for LMIA exemption.
- Consider using an Employer of Record (EOR) to simplify compliance.
How an Employer of Record Can Help
An Employer of Record in Canada lets you hire foreign employees without setting up a Canadian entity. The EOR becomes the official employer for legal purposes, handling payroll, benefits, compliance, manage contracts and work permit assistance.
Benefits include:
- Avoids the cost of establishing a local subsidiary.
- Ensures full compliance with Canadian labor laws.
- Manages visa and permit processes efficiently.
- Provides localized payroll and benefits.
Suggested Read: Remote Employees Onboarding Checklist with EOR in Canada
How Asanify Can Help
Managing Canada’s work authorization process can be complex, especially for overseas companies. Asanify’s Employer of Record (EOR) solution handles every stage from securing the correct permits to processing payroll and benefits ensuring compliance without a local entity.
With Asanify, you can:
- Hire and onboard international talent quickly.
- Stay compliant with Canadian labor and immigration laws.
- Expand into Canada without the cost and complexity of setting up an entity.
If your goal is to grow your team in Canada efficiently, Asanify makes it simple to enter one of the world’s most business-friendly markets.
FAQs
Most are valid for 1–3 years, with renewals possible depending on the program.
Government fees range from CAD 155 to CAD 1,000 depending on the permit type.
Yes, but they still require legal status to live in Canada.
It’s a labor market test showing no Canadian worker can fill the role, required for most foreign hires.
Yes, except for non-compliant or restricted employers.
Yes, and many spouses can apply for an open work permit.
The worker must stop working and apply for restoration of status or leave Canada.
An EOR handles compliance, payroll, and permits, saving time and reducing risk.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
