Canada’s Work Permit System Needs a Rethink

Canada’s work permit system has become overly complex and increasingly burdensome for both employers and foreign workers. With over a hundred Labour Market Impact Assessment (LMIA) and LMIA-exempt categories, the current framework lacks cohesion, transparency, and efficiency. This fragmentation leads to delays, uncertainty, and vulnerability—particularly for foreign workers whose status in Canada is tied to a single employer.

At a time when Canada is looking to regain control over its immigration levels, we need a system that is both responsive and fair. The current model does neither.

The Problem: A Patchwork of Programs

There are currently too many pathways to bring in foreign workers—ranging from the Temporary Foreign Worker Program (TFWP) and International Mobility Program (IMP). Each stream has its own rules, timelines, and assessment criteria.

This complexity not only confuses employers but also creates inequities for workers. Most foreign workers arrive in Canada on employer-restricted work permits, meaning their legal right to stay in Canada is conditional on remaining employed with the same company, in the same job and location. 

In fact, it may be time to abolish the LMIA process altogether. While the original intent behind requiring a Labour Market Impact Assessment was to protect Canadian workers, the process has become bureaucratic, expensive, and inconsistent in its outcomes. A more practical solution would be to create an "in-demand occupations" category where employers could submit proof of genuine recruitment efforts directly to IRCC, bypassing Employment and Social Development Canada (ESDC) altogether. This would streamline the process, reduce duplication, and place decision-making with the same department responsible for issuing the work permit. IRCC could then evaluate whether the employer has made sufficient efforts to hire Canadians, based on predefined recruitment criteria and labour market data, ensuring both accountability and efficiency.

A Better Way Forward: A Unified, Controlled Intake System

To fix this, Canada should borrow a page from its International Experience Canada (IEC) model and create a unified Work Permit Invitation Portal (WPIP).

Here’s how it could work:

- Employer-Driven Profile Submission: Canadian employers would create a profile for the foreign worker they wish to hire, selecting the stream they are applying under.

- Biweekly Draws: Every two weeks, IRCC would conduct a randomized draw from the submitted profiles. This would allow IRCC to control intake volumes—just like in Express Entry or IEC—and ensure that the number of work permits issued aligns with Canada’s labour market and policy objectives.

- Invitation to Apply: Selected candidates would be invited to submit a full application, demonstrating they meet the requirements of the stream they were selected under.

- Fairness and Transparency: This system would maintain eligibility criteria and compliance checks while allowing IRCC to manage inventory and eliminate backlogs.

Why This System Makes Sense

- Better Control: IRCC would regain control over how many foreign workers are admitted, when, and under which categories.

- Simplification: Employers and workers alike would benefit from a clear, single-entry point into the system.

- Worker Protection: A reformed system could standardize the issuance of a two-year work permit for all foreign workers, with the first six months tied to the employer who facilitated their entry into Canada, and the remaining 18 months issued as an open work permit. This balanced approach would ensure that employers benefit from the workers they helped bring in, while also giving workers the freedom and protection to seek new opportunities after an initial adjustment period—ultimately reducing vulnerability and increasing fairness in the labour market.

- Transparency: Draws and outcomes could be published publicly, increasing accountability.

- Efficiency: Eliminates duplication and reduces administrative overhead by consolidating intake and verification processes.

A System That Reflects Modern Needs

The Canadian economy relies on foreign workers, especially in healthcare, construction, agriculture, and technology. But our current work permit system does not reflect the realities of the modern labour market—or the need to protect the rights of workers while giving employers access to global talent.

It’s time to stop patching a broken system and build a new one—one that prioritizes fairness, flexibility, and control. The proposal for a unified work permit invitation portal is not only possible—it’s necessary.