How Employment Genuineness Is Assessed in LMIA Applications: Key Factors and Required Documentation

When submitting a Labour Market Impact Assessment (LMIA) application, employers must demonstrate that the job offer made to a Temporary Foreign Worker (TFW) is genuine.

Under IRPR 200(5), Service Canada assesses genuineness using four core factors. All four must be satisfied for an application to succeed.

The Four Genuineness Factors

1. Employer Is Actively Engaged in Business

The employer must prove that the business legally exists and is actively operating in Canada in a manner connected to the job being offered.

To meet this requirement, the employer should demonstrate that they:

• Operate an active and functioning business

• Provide goods or services related to the offered position

• Normally employs at least one worker

• Maintain a Canadian work location where the TFW will perform duties

First-time LMIA applicants undergo a more detailed assessment and may be required to submit:

• Business licence or municipal permit (if applicable)

• CRA T4 Summary

• CRA T2 corporate tax schedules

• Business contracts showing active operations in Canada

• PD7A Statement of Account for source deductions

• Attestation from a lawyer, notary public, or chartered accountant (where applicable)

Returning employers typically undergo a review, where officers verify that current business activities are consistent with previous LMIA applications. Significant operational changes may trigger follow-up questions.

2. Reasonable Employment Need

The job offer must reflect a legitimate and reasonable business need. Service Canada assesses whether the position aligns with the employer’s normal business activities and whether hiring a Temporary Foreign Worker (TFW) is justified based on operational requirements.

The role should be consistent with the type of work typically performed within the employer’s industry and necessary for business continuity, growth, or specialized operations.

While there is no mandatory list of documents for this factor, employers should provide a clear explanation supporting why the position is required.

Potential supporting documentation may include:

• News articles highlighting labour shortages within the industry

• Labour market statistics (e.g., Statistics Canada data) demonstrating talent shortages

• Documentation outlining the specialized or highly technical nature of the position

Providing objective, third-party evidence strengthens the rationale that the hiring need is genuine and consistent with business operations.

3. Employer’s Ability to Fulfill the Job Offer

Employers must demonstrate they can meet all terms of employment throughout the work permit period.

This includes the ability to:

• Provide full-time work consistent with the job description

• Pay wages and benefits offered in the LMIA application

• Meet program obligations (such as return transportation costs where required)

• Comply with applicable employment standards

Supporting documents may include:

• CRA T4 Summary (indicating workforce size)

• CRA T2 Schedule 100/125 (financial performance and operating income)

• CRA T215 or related financial documentation

• Workers’ Compensation clearance letter (if applicable)

Generally, Service Canada expects operating income or retained earnings sufficient to support the TFW’s wages and benefits.

4. Employer Compliance History

Employers must demonstrate compliance with all applicable federal and provincial or territorial laws.

This includes:

• Employment standards legislation in the province or territory of work

• Laws governing the recruitment of foreign workers

• Past compliance with the Temporary Foreign Worker Program (TFWP)

Best practices for employers:

• Maintain a clean compliance record

• Review past participation in the program

• Check the federal non-compliance list before applying

Examples of provincial requirements:

• Manitoba: Worker Recruitment and Protection Act (WRAPA) registration

• British Columbia: Certificate of Registration

• Saskatchewan: Certificate of Registration

• Nova Scotia: Employer Registration Certificate

Key Takeaway

A genuine job offer under the LMIA program is not determined by a single document but by a holistic assessment of the employer’s operations, business needs, financial capacity, and compliance history. Proper preparation and clear supporting evidence significantly improve application outcomes.