Visas and Work Permits in Canada: A Quick Guide for Employers
Suppose your organization is planning to hire or relocate employees to Canada. In that case, you’ll need to comply with all of Canada’s immigration and labor laws, to avoid potential penalties and other negative consequences.
In this quick guide, I’ll give you a crash course on the basic process of securing work permits and visas in Canada to point you in the right direction. I’ll also explain the different types of work permits and visas that are available in Canada, and answer a lot of popular questions about the application processes.
Helping your employees secure work permits and visas can be a tricky process — especially if you aren’t already familiar with Canada’s legal requirements — however, it doesn’t have to be. Working with an Employer of Record (EOR) in Canada can help minimize these risks and ensure your company is compliant in all areas.
Now, let’s dive in to get you one step closer to hiring and onboarding future staff in Canada without compliance risks.
Why is Compliance with Canadian Immigration Rules Important?
Compliance with Canadian immigration rules is critical for both employers and individuals.
For employers, compliance with immigration rules:
- Reduces the risk of hefty fines for non-compliance
- Avoids legal repercussions such as potential bans on hiring foreign workers in the future
- Removes the likelihood of damage to a company’s reputation from non-compliant business practices
- Demonstrates the organization’s commitment to legal and fair employment practices
For individuals, adherence to Canadian regulations:
- Ensures that their stay in Canada is legal
- Removes any fear of deportation or penalties
- Enhances an individual’s chances of extending their permits or applying for permanent residency
- Creates access to social benefits and rights accorded to workers, such as healthcare and employment protections
Who Can Legally Work in Canada?
In Canada, work authorization is straightforward for Canadian citizens and permanent residents — they are eligible to work without additional permits. However, for foreign nationals, the process is more complex and requires careful attention to work visa and permit requirements.
Anyone who is not a Canadian citizen or permanent resident needs a valid work permit to be employed in Canada.
These work permits are issued based on specific conditions, such as the type of work, the employer’s eligibility, and the worker’s qualifications. Knowing these criteria in advance helps ensure a smoother hiring process and helps prevent potential compliance issues down the line.
Understanding Canadian Work Permits and Visas
For HR professionals managing international hires, it’s crucial to understand the distinction between work permits and visas in Canada.
What is the difference between a work permit and a visa in Canada? In short, a visa allows a foreign national to enter Canada, while a work permit authorizes them to work within the country under specific conditions.
A visa is essentially a travel document that grants permission to enter Canada. There are different types of Canadian visas, not all of which allow for employment. For example, a Temporary Resident Visa (i.e., a visitor visa) allows entry for tourism or short stays but does not grant the right to work.
On the other hand, a work permit is not a travel document; instead, it’s a specific authorization to work in Canada, typically issued with certain limitations, such as the type of job, employer, or location. Work permits are time-limited and must be renewed or reapplied if the worker’s situation changes or the permit expires.
Types of Work Permits in Canada
Choosing the right work permit depends on the nature of the job, the qualifications of the worker, and the employer’s needs. Below is an overview of the main types of work permits available to foreign nationals in Canada, each with its own set of conditions and eligibility requirements.
Open Work Permit
An Open Work Permit allows the holder to work for any employer in Canada and does not tie them to a specific job or company.
This permit is ideal for candidates who wish to explore various employment opportunities or need flexibility, as it isn’t job-specific. However, eligibility is often limited to certain categories, such as spouses or common-law partners of skilled workers or recent graduates under the Post-Graduation Work Permit program.
Employer-Specific Work Permit
The Employer-Specific Work Permit (sometimes called a closed work permit) is restricted to a single employer, job, and location.
This permit requires that the hiring company complete specific steps before the permit is issued, often including a Labour Market Impact Assessment (LMIA) to show the need for a foreign worker. This type of permit is commonly used for international hires in specialized or skill-shortage areas.
International Mobility Program (IMP) Work Permit
The International Mobility Program (IMP) allows foreign workers to enter Canada without an LMIA when the job serves Canada’s broader economic, cultural, or competitive interests.
This permit can be used for intra-company transferees, employees of businesses with reciprocal agreements, or workers coming under free trade agreements. The IMP streamlines the process for companies hiring skilled talent that supports Canada's international commitments.
Intra-Company Transfer Work Permit
The Intra-Company Transfer (ICT) Work Permit is designed for employees of multinational companies who are being relocated to a Canadian branch, affiliate, or subsidiary, and is LMIA exempt.
This permit enables companies to transfer executive, managerial, or specialized knowledge staff to Canada without an LMIA. It’s an excellent option for companies expanding their Canadian presence or needing specific expertise in their Canadian operations.
Post-Graduation Work Permit (PGWP)
The Post-Graduation Work Permit (PGWP) allows international students who have completed a qualified program at a Canadian institution to work in Canada.
This open permit offers graduates the flexibility to work for any employer, making it an attractive option for recent graduates looking to gain Canadian work experience.
Academic Exchanges Work Permit
The Academic Exchanges Work Permit applies to foreign nationals involved in academic activities, such as researchers, professors, or guest lecturers, who wish to work temporarily at a Canadian educational institution.
This type of permit supports knowledge sharing and collaboration between Canada and other countries and may or may not require an LMIA, depending on the specifics of the exchange.
Temporary Foreign Worker Program (TFWP) Work Permit
The Temporary Foreign Worker Program (TFWP) helps fill labor shortages in Canada by allowing employers to hire foreign workers when qualified Canadian citizens or permanent residents are not available.
The TFWP requires an LMIA to demonstrate the need for a foreign worker in the specific role, making it a common choice for industries facing persistent labor shortages.
What are the Eligibility Requirements for a Canadian Work Permit?
To qualify for a Canadian work permit, applicants must meet certain eligibility requirements set by Immigration, Refugees and Citizenship Canada (IRCC). These requirements ensure that candidates have a clear intent to comply with Canadian laws and that their employment in Canada will positively contribute to the workforce.
Here are the main eligibility criteria:
- Proof of Employment Offer: The applicant must have a job offer from a Canadian employer (for employer-specific work permits) or meet eligibility for an open work permit category.
- Intention to Leave Canada: The applicant must demonstrate an intent to leave Canada once their work permit expires unless they have obtained the right to stay longer through other means.
- Proof of Financial Support: Candidates must show they have sufficient funds to support themselves and any accompanying family members during their stay in Canada.
- No Criminal Record: Applicants must provide a police clearance certificate to confirm they have no criminal record that could pose a risk to Canadian society.
- Medical Examination: Some applicants may be required to undergo a medical exam to ensure they do not have health conditions that could endanger public health or place excessive demands on Canada’s healthcare system.
- Compliance with Canadian Laws: Applicants must agree to respect Canadian laws throughout their stay.
- No Previous Violations of Immigration Laws: Candidates who have previously violated immigration laws in Canada or another country may face challenges in eligibility.
In addition to these general requirements, there are also additional requirements depending on whether the candidate is applying for a work permit from abroad or from within Canada.
Applicants applying from outside Canada may face different processing times, documentation requirements, and entry procedures.
Meanwhile, individuals already in Canada under certain permits or statuses may be eligible to apply from within the country, often simplifying parts of the process.
How to Get a Work Permit in Canada
To work legally in Canada, foreign nationals must apply for their work permits independently; the application process is not completed through the employer.
While employers play a supportive role, particularly for employer-specific work permits, the onus is on the individual to complete the work permit application.
For roles requiring an employer-specific work permit, the employer first needs to obtain a Labour Market Impact Assessment (LMIA). This document, issued by Employment and Social Development Canada (ESDC), demonstrates that the hiring of a foreign worker is necessary due to a lack of available Canadian workers for the position.
Once the LMIA is approved, the employee can include it in their work permit application, along with other required documents like proof of employment, proof of financial support, and any necessary medical or police clearances.
Submit a Labor Market Impact Assessment (LMIA)
For Canadian employers looking to hire a foreign worker, submitting a Labor Market Impact Assessment (LMIA) is a key requirement.
The LMIA is a document that demonstrates to the Canadian government that there are no qualified Canadian citizens or permanent residents available to fill a specific position. By submitting an LMIA, the employer shows a genuine need for international talent to meet business demands.
To obtain an LMIA, the employer must provide evidence that efforts were made to recruit Canadian workers, including job advertising and interviewing Canadian candidates, if possible. This process helps ensure that hiring foreign workers is a last resort, aligning with Canada’s commitment to prioritize local talent.
Once the LMIA is approved, it can be provided to the foreign worker to support their work permit application.
Completing the LMIA accurately and thoroughly is crucial, as it is a significant step in enabling a foreign worker to legally work in Canada.
Types of Visas to Enter Canada
When hiring or relocating international talent, it’s essential to understand the different types of visas that may apply, as not all are related to employment.
Here’s an overview of the main types of visas that allow individuals to enter Canada:
Temporary Resident Visa (TRV)
A Temporary Resident Visa (TRV), also known as a visitor visa, is required for foreign nationals from non-visa-exempt countries who wish to enter Canada for short stays. While this visa does not permit the holder to work, it allows them to visit Canada temporarily.
The TRV is ideal for foreign nationals attending business meetings, conferences, or exploring future opportunities in Canada.
Digital Nomad Visa
The Digital Nomad Visa is a new visa category for remote workers who want to live in Canada temporarily while working for a non-Canadian employer. Although this visa does not grant the right to work for a Canadian employer, it enables digital nomads to experience life in Canada while maintaining their remote work.
This visa category is particularly attractive to digital freelancers, consultants, and other remote professionals.
Study Permit
A Study Permit allows foreign nationals to study at a designated learning institution in Canada for programs longer than six months. While it primarily serves academic purposes, students with a study permit can also work part-time on or off campus.
After graduation, many students are eligible to apply for a Post-Graduation Work Permit (PGWP), enabling them to gain Canadian work experience.
Permanent Resident Visa
A Permanent Resident (PR) Visa grants foreign nationals the right to live and work in Canada indefinitely. PR status offers several benefits, including access to social services, healthcare, and the ability to apply for Canadian citizenship after meeting residency requirements.
Permanent residents do not need a separate work permit, as their status allows them to work freely within Canada.
Visa-Exempt Countries
Certain countries have exemption agreements with Canada that allow their citizens to enter without a visa for short stays, typically up to six months.
Citizens of visa-exempt countries may still need an Electronic Travel Authorization (eTA) to enter Canada by air, but they don’t require a Temporary Resident Visa (TRV) for short-term visits. However, if they plan to work, they will need a valid work permit.
Use an EOR to Avoid Immigration Compliance Stress
Navigating Canada’s immigration and labor requirements can be challenging, especially when hiring foreign employees. A practical solution I’m a big advocate of is partnering with an Employer of Record (EOR), which is a third-party service that manages the complexities of international employment on behalf of companies.
An EOR acts as the official employer of your international hires, handling critical responsibilities like immigration compliance, labor law adherence, work permit and visa applications, and global payroll processing services.
The benefits of partnering with an EOR service include:
- Ongoing Compliance Monitoring: The EOR continuously monitors immigration and labor laws, ensuring that your company stays updated with any regulatory changes that could affect your employees’ status.
- Misclassification Insurance Coverage: An EOR helps protect against misclassification risks, offering coverage and support if worker classifications are challenged. This is especially valuable for companies unfamiliar with Canadian employment classifications.
- Global Hiring Expertise: EORs are experts in international hiring and bring valuable insights into local employment practices, taxes, and compliance. By leveraging their expertise, companies can focus on core business activities without the added stress of navigating immigration compliance.
Using an EOR not only simplifies the hiring process for foreign employees but also provides peace of mind, knowing that all immigration and labor laws are handled by experts. Essentially, they are a powerful ally in ensuring compliant, streamlined, and efficient international hiring.
If you’re new to the idea of using an EOR service, our detailed reviews of service providers such as Deel and Oyster HR can clarify more details about the process.
Or, if you’re ready to dive into the next step, here’s my list of the best EOR services in Canada based on my careful research and knowledge of Canadian work permit requirements.
Frequently Asked Questions
Here are answers to some common FAQs about Canadian work permits and hiring foreign employees.
Do US citizens need a work permit to work in Canada?
Yes, US citizens need a work permit to work in Canada. Although US citizens benefit from simplified entry under agreements like the United States-Mexico-Canada Agreement (USMCA), they must still obtain the appropriate work permit to be employed in Canada legally.
Can my company sponsor an employee’s Canadian work permit application?
No, companies in Canada cannot directly sponsor an employee’s work permit application. Instead, employers may support the process by obtaining a Labor Market Impact Assessment (LMIA) if required, which the employee can then use to apply for their work permit independently. However, this is not technically considered sponsorship.
What’s the fastest way to get a Canadian work permit?
The fastest way to obtain a Canadian work permit is through the Global Skills Strategy (GSS), which offers two-week processing times for eligible applicants.
To qualify for a GSS work permit, you must be applying from outside Canada and either have a job offer supported by a positive Labour Market Impact Assessment (LMIA) under the Global Talent Stream or be LIMA exempt under a specific international agreement.
What documents are required for a Canadian work permit application?
Applicants typically need to provide a completed application form, proof of job offer (such as a copy of the employment contract or LMIA if required), a valid passport, recent photographs, proof of financial support, and, in some cases, a police clearance certificate and medical examination results.
How much does it cost to get a Canadian work permit?
The cost of obtaining a Canadian work permit varies based on the type of permit and individual circumstances.
As of November 2024, the standard application fee for a work permit is $155 CAD. If you’re applying for an open work permit, there’s an additional fee of $100 CAD, bringing the total to $255 CAD. Additionally, if biometrics are required, there’s a fee of $85 CAD per person.
Employers may also need to pay a compliance fee of $230 CAD, depending on the specific program and circumstances.
For up-to-date information on permanent resident and work permit fees, please refer to the IRCC website.
How do you renew your Canadian work permit?
To renew a Canadian work permit, work permit holders should submit an extension application at least 30 days before the current permit expires. Renewal applications can be completed online through Immigration, Refugees and Citizenship Canada (IRCC), and applicants may need to provide updated documents, such as proof of continued employment, a new LMIA if required, and any additional fees. Until a decision is made, applicants can generally continue working under “implied status.”
Is there a limit on the number of times you can apply for a Canadian work permit?
No, there is no strict limit on the number of times you can apply for a Canadian work permit. However, each application is reviewed individually, and applicants must continue to meet eligibility requirements for each renewal or new permit.
However, some types of permits, like the Post-Graduation Work Permit (PGWP), have specific eligibility criteria that prevent reapplication.
How much does an Employer of Record charge in Canada?
The cost of employing an EOR in Canada varies based on the provider and services offered. Typically, fees range from $200 to $800 USD per employee per month.
It’s important to note that these fees can fluctuate depending on factors such as the complexity of services required, the number of employees, and the specific EOR provider.
Some providers, like Skuad, offer services starting at $199 USD per employee per month, whereas other EOR providers, like Velocity Global, don’t actually disclose their pricing publicly.
What are the risks of using an Employer of Record service?
While an EOR service simplifies international hiring, potential risks include limited direct control over employee management, reliance on the EOR’s compliance accuracy, and possible differences in employment standards across regions.
Choosing a reputable EOR with proven expertise in local labor laws can help mitigate these risks, ensuring compliance and a positive experience for both employer and employee.
The Bottom Line
Hiring or relocating talent to Canada can be a rewarding opportunity for companies expanding their global workforce, but it also requires a careful approach to compliance and immigration requirements.
The best approach is to stay informed and seek expert support when needed. Partnering with an EOR can offer peace of mind, especially when navigating the complexities of Canadian immigration and employment laws. This way, you can focus on bringing in the best talent without the added stress of compliance challenges.
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This content is for informational purposes only, and should not be relied upon as legal advice. We recommend always following the advice of an employment lawyer or EOR partner before making any decisions to hire employees in Canada.