Canada | New employer eligibility guidelines for Labor Market Impact Assessment applications

Employment and Social Development Canada published an update clarifying employer eligibility requirements under the Temporary Foreign Worker (TFW) Program, emphasizing that only entities with a genuine employer-employee relationship with a foreign national may be considered employers for Labor Market Impact Assessment (LMIA) purposes.

Key takeaways:

According to the updated guidelines, eligible employers may include individuals, businesses, corporations and organizations. An employer for LMIA purposes is the entity that:

• Hires the temporary foreign worker
• Establishes the worker’s terms and conditions of employment
• Directly pays wages and compensation
• Maintains responsibility for the employment relationship

When assessing LMIA applications, Service Canada may consider factors including:

• Who is responsible for complying with TFW Program requirements under Canada’s immigration laws and regulations
• Who directly benefits from the worker’s services
• Who determines where, when and how the work is performed
• Who pays wages and other compensation
• Who assigns job duties, sets expectations and monitors performance
• Who has authority to hire, discipline or terminate the worker
• Which entity the foreign national recognizes as their employer

The guidance notes that “Staffing or employment agencies who recruit workers for other businesses aren’t considered employers under the TFW Program. They can’t be approved to hire a temporary foreign worker for other businesses since an employer-employee relationship doesn’t exist.”

Employers can review specific TFW hiring stream requirements on the program webpage and are encouraged to consult with their BAL attorney for case-specific guidance.

This alert has been provided by the BAL Global Practice Group.

Copyright © 2026 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.