How to Hire a Foreign Caregiver in Canada: The LMIA Process Explained for Families

Most Canadian families who want to hire a caregiver from abroad have never run a business and have never hired a foreign worker. The Labour Market Impact Assessment process was designed for companies — and it shows. Here's what the process actually involves, what it costs, and what the new 2026 rules mean for private families trying to hire.

The Basic Requirement: Why an LMIA Is Needed

When a Canadian employer wants to hire a temporary foreign worker, they generally need a Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC). The LMIA proves that the employer:

• Made genuine efforts to find a Canadian worker for the job
• Couldn't find a qualified Canadian or permanent resident to fill the position
• Can afford to pay the required wage
• Understands their obligations as an employer of a temporary foreign worker

For private families hiring a caregiver, the LMIA process is the same as for a corporation — with a few specific differences and exemptions designed for household employers.

The Employer Requirements: Getting a Business Number

Individual families must obtain a Business Number (BN) from the Canada Revenue Agency specifically for the purpose of hiring a foreign caregiver. This is separate from any existing personal tax filing. The BN establishes the family as an "employer" in the CRA system for payroll purposes.

If two adult children are sharing the responsibility of hiring a caregiver for an elderly parent — for example, splitting the cost of a full-time home support worker — they can act as co-employers under a single BN. They only need one number between them.

Getting a BN is straightforward and free. It can be done online at the CRA's Business Registration Online portal, or by calling CRA. The BN is required before submitting the LMIA application.

The 2026 LMIA Rules: What Changed for Low-Wage Positions

Effective April 1, 2026, ESDC tightened the requirements for hiring low-wage temporary foreign workers — which includes most caregiver positions. The changes matter if you're starting the LMIA process now:

Extended advertising requirement: Employers must advertise the position for at least 8 consecutive weeks (up from 4 weeks) within the 3 months before applying for the LMIA. Ads must run on Job Bank (required), and at least two other recruitment channels.

Youth targeting: Recruitment efforts must specifically target Canadian youth through Job Bank and at least one youth-specific job board or program.

Unemployment cap: LMIAs for low-wage positions will not be processed if the unemployment rate in the metropolitan area exceeds 6%. This can affect applications in certain cities during economic downturns.

These advertising requirements are not optional — ESDC audits the recruitment effort as part of the LMIA assessment. A weak advertising record is a common reason LMIAs get refused.

The $1,000 LMIA Application Fee — and When It's Waived

The standard LMIA application fee is $1,000 per position. The law is clear: this fee must be paid by the employer. It cannot be passed to the worker. If anyone tells you that you need to reimburse the employer for the LMIA fee, that is illegal.

However, the fee is waived in two specific situations for families hiring caregivers:

Medical care exemption: Families hiring a caregiver for a household member who requires assistance due to a medical need — confirmed by a physician's note — are exempt from the $1,000 LMIA fee.

Child care exemption: Families hiring a caregiver for a child under the age of 13 who have a gross annual household income of $150,000 or less are exempt from the fee.

For many private family employers, one of these exemptions applies. If you're not sure whether you qualify, check both criteria carefully — the income threshold for the child care exemption is the combined household gross income, not just one parent's income.

What the LMIA Application Involves

The LMIA application is submitted through ESDC's online portal. For a private household employer, it typically includes:

1. Business Number and employer identity verification
2. Job description — must match NOC 44100 (Home Child Care Provider) or NOC 44101 (Home Support Worker) with specific duties listed
3. Employment contract — specifying wages, hours, duties, and accommodation arrangements if the position is live-in
4. Proof of recruitment effort — copies of job ads, applications received, interview records, and explanation of why Canadian applicants were not hired
5. Wage confirmation — the offered wage must meet the prevailing wage for the region as published by ESDC
6. Proof of ability to pay — financial evidence that the employer can pay the stated wage

What Happens After LMIA Approval

Once ESDC approves the LMIA:

1. You receive an LMIA approval number
2. You provide this number to your intended caregiver, along with a copy of the LMIA decision letter and your employment offer
3. The caregiver uses these documents to apply for a Canadian work permit from their home country (or from within Canada if they're already here)
4. Work permit processing typically takes 2–6 months depending on the visa office processing the application

The LMIA is not a work permit — it's the employer's authorization. The worker still needs to apply for and receive a work permit before coming to Canada.

The Employer Responsibilities That Continue After Hiring

Once the caregiver arrives and starts working, the employer has ongoing obligations:

• Pay the wage specified in the LMIA and employment contract (any reduction requires a new LMIA)
• Provide a written employment contract before work begins
• Pay for the caregiver's return transportation to their home country if the employment ends before the work permit expires (unless the worker found new employment in Canada)
• Maintain records of wages paid, hours worked, and any contract variations
• Comply with provincial employment standards for minimum wage, overtime, and rest periods

ESDC conducts employer compliance inspections — including unannounced workplace visits — to verify employers are meeting their LMIA commitments. Violations can result in fines, bans on hiring TFWs, and public listing on the employer blacklist.

If You Want to Hire a Caregiver Already in Canada

If your intended caregiver is already in Canada on a valid work permit, the process can be simpler. Workers on an occupation-restricted open work permit can change employers without a new LMIA. You still need to provide an employment contract and ensure the job duties match their NOC category, but you skip the 8-week advertising requirement and the LMIA fee.

The caregiver's occupation-restricted permit allows them to work for you in the same occupational category (NOC 44101 or 44100) without additional LMIA processing. This is why many families prefer to hire caregivers already in Canada through the pilot programs rather than sponsoring someone from abroad.

For families navigating this process for the first time, the LMIA requirements are genuinely complex — not because they're poorly designed, but because they were built for corporate HR departments, not for families. The Canada Caregiver Program Guide includes a section explaining the LMIA process from the worker's perspective, including what employers are supposed to provide, what workers can check, and how to verify that an employer's offer is legitimate. See the guide here.

Key Takeaways

• Employers need a Business Number from CRA before applying for an LMIA — it's free and quick to obtain
• The LMIA fee is $1,000 per position — paid by the employer, never the worker
• Fee waived for families hiring caregivers for medical needs or for children under 13 (with household income ≤$150,000)
• As of April 2026, employers must advertise for 8 weeks (up from 4) and target Canadian youth in recruitment
• LMIAs for low-wage roles aren't processed if local unemployment exceeds 6%
• Caregivers already in Canada on occupation-restricted permits can change employers without a new LMIA

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