LMIA-Exempt Work Permits in Canada | Using Japan’s CPTPP Advantage

An LMIA (Labour Market Impact Assessment) is a document that a Canadian employer must obtain when hiring a foreign national — essentially a “permit to employ a foreign worker.” After an assessment by Employment and Social Development Canada (ESDC), it confirms that hiring the foreign national will have only a positive or neutral impact on the Canadian labour market — in other words, no negative impact.

On the other hand, under international agreements, foreign nationals who meet certain conditions may be able to obtain a work permit without an LMIA.

Traders

A trader is “a person who intends and is able to carry on trade in goods or services between Canada and the country of their nationality.” For this type of work, foreign workers with the following nationalities can be employed without an LMIA.

• United States
• Mexico
• Colombia
• Chile
• South Korea
• Peru

These countries have special LMIA-exempt frameworks based on several international agreements concluded with Canada, such as the Canada–United States–Mexico Agreement (CUSMA).

The Canada–United States–Mexico Agreement (CUSMA) replaced the North American Free Trade Agreement (NAFTA), and US citizens are exempt from obtaining a Temporary Resident Visa (TRV). However, since February 29, 2024, Mexican citizens travelling to Canada, including those who wish to work in Canada, must obtain a TRV unless they are eligible for an eTA by meeting all three of the following criteria set out by Immigration, Refugees and Citizenship Canada (IRCC).

• You are entering Canada by air, or entering Canada in transit to another destination.
• Your stay is short-term (usually a stay of 6 months or less).
• You have held a Canadian visitor visa, work permit or study permit within the past 10 years, or you hold a valid US non-immigrant visa of any kind at the time of application and at the time of travel.

Investors

An investor is a person who can show that they have made a substantial investment in a Canadian business and are involved in developing and directing that business. Investors with the following nationalities can work in Canada without an LMIA.

• United States
• Mexico
• Colombia
• Chile
• South Korea
• Peru
• European Union (CETA member states)
• United Kingdom
• Some member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), including Japan

Professionals

The definition of a professional differs depending on the international agreement. For example, under the agreement with Mexico (CUSMA), it is “a person who has pre-arranged employment or a contract with a Canadian enterprise and works in an eligible occupation.” Under the CPTPP, only people working in occupations at skill level TEER 0 or 1 who also meet the education and work experience requirements and the requirements for their nationality are eligible.

Eligible nationalities include the following:

• United States
• Mexico
• Colombia
• Chile
• Panama
• Peru
• Member countries of GATS (General Agreement on Trade in Services)
• Some CPTPP member countries, including Japan (same as the list in the Investors section above)

Technicians

Technicians with certain nationalities can also work in Canada without an LMIA. The eligible nationalities are as follows:

• Colombia
• Panama
• Peru
• CPTPP member countries, including Japan

Intra-Company Transferees (ICT)

Intra-company transferees (ICT = Intra-Company Transfers) are employees of a foreign company who are temporarily transferred to a related company or subsidiary in Canada. The intra-company transfer work permit is open to all nationalities, but certain international agreements set conditions specific to each country.

• Executives or senior managers: United Kingdom, CPTPP member countries including Japan, CETA member states, Peru, South Korea, Chile, Colombia, United States, Mexico
• Specialized knowledge workers: United Kingdom, CPTPP member countries including Japan, CETA member states, Peru, South Korea, Chile, Colombia, United States, Mexico
• Management trainees: United Kingdom, CPTPP member countries including Japan, Peru, South Korea, Colombia
• Graduate trainees: CETA member states

Foreign workers who meet certain conditions can work in Canada without an LMIA under international agreements. Here are some examples, grouped by occupation and by country.

Special Work Situations

If you fall under one of the following occupations, you can work in Canada without an LMIA.

• Airline personnel (flight operations, technical and ground staff)
• US government officials

Spouses of Foreign Workers

Under some international agreements, spouses of foreign workers can also work in Canada without an LMIA. The eligible nationalities are as follows:

• Colombia
• South Korea
• CPTPP member countries, including Japan
• European Union (CETA) – spouses of intra-corporate transferees
• United Kingdom – spouses of ICTs

Special Provisions by Country and Agreement

Under certain international agreements, people may also be employed without an LMIA. The eligible countries and conditions are as follows:

• South Korea: contractual service suppliers or independent professionals
• European Union (CETA): contractual service suppliers, engineering technologists, scientific technologists and independent professionals
• United Kingdom: independent professionals, contractual service suppliers, engineering technologists and scientific technologists

Since September 26, 2024, the Government of Canada has refused to process certain LMIA applications (for example, low-wage positions in census metropolitan areas with an unemployment rate of 6% or higher), and many employers and applicants who were considering a work permit have been affected. This makes it more important than ever to consider these “LMIA-exempt work permits.”

Fortunately, as a CPTPP member, Japan has several routes that are exempt from the LMIA. If you think you may qualify for one of these, or would like to explore them, please consult our firm first.