Canada Work Permits & Visas: Employer Guide to Types & Sponsorship

Looking to sponsor an international hire in Canada? This guide breaks down what employers need to know — from visa types to employer obligations and timelines. Whether you're hiring locally or relocating international talent, we've got you covered.

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Sponsoring a Visa in Canada: What Employers Need to Know

Are you an employer looking to sponsor international talent in Canada? Navigating Canada’s visa and work permit process can be complex — especially without a local legal entity or dedicated HR team.

This guide breaks down everything you need to know about employer-sponsored work visas in Canada, including processing times, documentation, and local compliance rules. Whether relocating a team member or hiring locally, Playroll simplifies visa sponsorship through an end-to-end employer of record platform.

Key Takeaways

Employers or EOR providers must be registered with the Canadian immigration authorities to sponsor foreign workers.

Work permit processing times generally take 2–4 months, depending on the type and complexity of the application.

Common work visas include the Temporary Work Permit, Open Work Permit, and the Employer-Specific Work Permit, each with specific requirements.

Independent contractors follow a separate process, often not requiring employer sponsorship but must meet other criteria for self-employed work.

Work permits are typically employer-specific, and employees may require approval to change jobs or locations within Canada, especially for specific work permits tied to employers.

Who Needs a Work Permit in Canada?

In Canada, any foreign national looking to work temporarily will generally need a work permit, unless they fall into a specific exempt category. Employers hiring foreign workers must verify whether their employees require a work permit before they can start working.

Foreign nationals who are seeking employment in Canada must apply for a work permit unless they are a citizen of one of the countries under the Temporary Foreign Worker Program (TFWP) or the International Mobility Program (IMP). Certain types of workers, such as business visitors or individuals working on short-term projects, may not need a permit, but this varies depending on their specific situation.

Types of Work Visas in Canada

Canada offers a variety of work visa options depending on the type of employment and the applicant's nationality. Understanding the different visa types is essential for employers seeking to hire workers from abroad. Below is a breakdown of the key work visas available in Canada:

Visa Type Description
Temporary Work Permit Allows foreign nationals to work in Canada for a limited time in a specific occupation.
Open Work Permit Allows workers to work for any employer in Canada, with no specific job offer required.
Intra-Company Transfer Visa Enables employees of multinational companies to transfer to a Canadian branch or affiliate.
Post-Graduation Work Permit Issued to international students who have completed a program of study in Canada, allowing them to work temporarily in the country.
LMIA-Based Work Permit Requires an employer to obtain a Labour Market Impact Assessment (LMIA) to demonstrate the need for a foreign worker.

Choosing The Right Hiring Path In Canada

When hiring talent in Canada, employers typically choose one of three pathways depending on the role, duration, & legal requirements. Below are the most common models.

1. Hire as an Employee (Sponsorship)

This is the most common route for companies hiring full-time foreign talent in Canada. To sponsor this visa, an employer (or Playroll as the Employer of Record) must have a registered legal entity in-country and issue a compliant offer of employment.

Key Employer Considerations:

  • Sponsorship is required — contractors or freelancers cannot apply under this visa.
  • Employees must remain in the approved work location unless authorized to relocate or change employers.
  • Processing timelines vary (around 2–4 months on average), depending on the consulate or embassy.

This is best for: Long-term roles with in-office or hybrid presence in Canada.

2. Hire as a Contractor

Independent professionals in Canada can legally work with international clients without employer sponsorship, but must comply with local tax registration and reporting laws.

With Playroll’s Contractor Management solution, you can:

  • Draft fully compliant local contractor agreements.
  • Automate contractor invoicing and cross-border payments, in Canadian Dollar (CAD) or USD.
  • Mitigate risk of permanent establishment and contractor misclassification.

This is best for: Freelancers, consultants or project-based roles, especially if the worker already lives in Canada.

3. Relocate or Transfer an Existing Employee

Transferring an existing team member to Canada? You’ll still need to navigate the same visa and payroll setup process. Even if the employee works for you elsewhere, a local employer of record is required to stay compliant.

EOR’s, like Playroll, handle all local steps, including:

  • Work permit sponsorship and immigration paperwork,
  • Registration with local authorities and payroll systems,
  • Enrollment in mandatory benefits and statutory schemes.

This is best for: Internal transfers or remote-first companies looking to expand into North America, or talent retention offerings for global mobility programs.

Work Permit Application Process in Canada (Step-by-step)

Canada’s work permit process is structured but can vary depending on whether the role requires a Labour Market Impact Assessment (LMIA) or qualifies for an LMIA exemption. Below is a high-level, employer-focused overview of the typical steps.

  • Step 1: The employer defines the role and confirms that hiring a foreign worker is necessary. This usually involves preparing a detailed job description, salary range, and identifying whether the position falls under the Temporary Foreign Worker Program (TFWP) or an LMIA-exempt category under the International Mobility Program.
  • Step 2: The employer determines whether an LMIA is required and, if so, conducts recruitment. For LMIA-based roles, employers typically must advertise the position in Canada for a prescribed period and document efforts to recruit Canadian citizens and permanent residents before turning to a foreign national.
  • Step 3: The employer gathers supporting company documentation. This can include business registration, proof of financial capacity, tax filings, and, where applicable, provincial registrations or licenses to show that the business is active and compliant.
  • Step 4: The employer submits the LMIA application or, for LMIA-exempt roles, completes the employer compliance submission through the Employer Portal. This step generally includes paying government processing and compliance fees and providing detailed information about the job offer and working conditions.
  • Step 5: Once a positive LMIA or LMIA-exempt offer of employment number is issued, the employee submits their work permit application to Immigration, Refugees and Citizenship Canada (IRCC) or at a visa application center abroad. The worker provides personal forms, biometrics, police certificates, and medical exams where required.
  • Step 6: IRCC reviews the application, may request additional documents, and issues a decision. If approved, the worker receives a port of entry letter of introduction and, in many cases, a temporary resident visa or electronic travel authorization (eTA) to enter Canada.
  • Step 7: On arrival in Canada, the worker presents their documents to a border services officer. If all conditions are met, the officer issues the physical work permit at the port of entry, specifying employer, occupation, location, and validity dates.

Requirements and Eligibility for a Work Permit

Eligibility for a Canadian work permit depends on both the employer’s situation and the foreign worker’s personal circumstances. Requirements differ across programs, but there are common elements that most applicants and sponsors must meet.

Common requirments inlcude:

  • Valid job offer: The foreign worker typically needs a genuine, written job offer from a Canadian employer that meets prevailing wage and working condition standards. This helps ensure the role is legitimate and not created solely for immigration purposes.
  • LMIA or LMIA exemption: Many employer-specific work permits require a positive LMIA confirming there is a need for a foreign worker and no suitable Canadians are available. In LMIA-exempt cases, the employer must still meet specific criteria under programs such as intra-company transfers or international agreements.
  • Proof of employer compliance: Employers must demonstrate they are actively operating and compliant with employment, tax, and health and safety laws. Authorities may review payroll records, contracts, and workplace policies to confirm compliance.
  • Employee qualifications: The worker must show they are qualified for the role through education, professional credentials, and relevant work experience. In regulated occupations, proof of licensing or eligibility for licensing may be required.
  • Admissibility to Canada: The worker must be admissible on security, criminality, and health grounds. This can involve police certificates, biometrics, and medical examinations, especially for longer-term or high-risk roles.
  • Financial and intent evidence: Applicants may need to show they can support themselves and any accompanying family members and that they intend to respect the conditions of their stay, including leaving Canada when their authorization ends unless they obtain further status.

Work Permit Processing Time in Canada

Processing times for Canadian work permits vary significantly depending on the program, the applicant’s country of residence, and IRCC’s current workload. Seasonal surges and security or background checks can also affect timelines.

The typical processing time for a work permit or visa in Canada can vary depending on whether the application is made from inside or outside Canada, whether biometrics and medicals are required, and whether the case is straightforward or requires additional review. Generally, you can expect the following timelines:

  • Temporary Residence or Work Permit: Often ranges from 2 to 6 months after all documents, biometrics, and fees have been submitted, though some straightforward cases may be faster.
  • Permanent Residence: Commonly ranges from 6 to 18 months or longer, depending on the program, background checks, and the completeness and complexity of the application.
  • Short-Term Business or Work Visas: May be processed in about 2 to 8 weeks after submission, particularly for business visitors attending meetings, conferences, or short-term assignments.

Expected Processing Timeline: Employer vs Employee

While exact timelines differ by case, it is useful to think of the process in weekly phases that involve both the employer and the employee. Below is a general, illustrative breakdown.

  • Week 1–2: Employer confirms the role, determines whether an LMIA or LMIA exemption applies, and begins gathering corporate documents and job details.
  • Week 3–6: For LMIA-required roles, the employer conducts recruitment and prepares the LMIA application; for LMIA-exempt roles, the employer prepares the Employer Portal submission.
  • Week 7–10: Employer submits the LMIA or employer compliance filing and awaits a decision or confirmation number, while the employee prepares personal documents, police certificates, and medicals if needed.
  • Week 11–16: Employee submits the work permit application, provides biometrics, and responds to any IRCC document requests; employer may be contacted for verification.
  • Week 17–24: IRCC finalizes the decision, issues a port of entry letter of introduction if approved, and the employee makes travel arrangements and prepares for arrival in Canada.

Who Does What During Canada Work Permit Sponsorship?

  • Employers are responsible for: Defining the role, confirming the appropriate program (such as LMIA-based TFWP or LMIA-exempt International Mobility Program), preparing and submitting any LMIA or employer compliance filings, paying applicable government fees, and ensuring ongoing compliance with employment and immigration conditions.
  • Employee is responsible for: Providing accurate personal information and supporting documents, completing biometrics and medical examinations where required, submitting the work permit application, and complying with the specific terms of their work authorization, including employer, occupation, and length of stay.

Work Permit Renewal Periods in Canada

Many Canadian work permits can be renewed or extended, provided the underlying conditions remain valid, such as a continuing job offer, ongoing LMIA validity, or eligibility under an LMIA-exempt category. Typical employer-specific work permits may be issued for one to three years at a time, with renewals subject to program caps, maximum duration rules, and evolving immigration policies.

Employers and workers should start renewal planning several months before the current permit expires to avoid gaps in status or work authorization. Practice may vary by program and province, so it is important to review current IRCC guidance and, where relevant, provincial rules or professional licensing requirements before filing an extension.

What Are the Fees for a Work Permit or Visa in Canada?

The fees for work permits and visas in Canada can vary depending on the type of visa being applied for and the applicant's circumstances. Generally, application fees range from several hundred to over a thousand dollars, with additional fees for biometric collection or other processing requirements.

Visa Type Application Fee
Temporary Work Permit $155
Open Work Permit $255
Post-Graduation Work Permit $255
Intra-Company Transfer Visa $155
LMIA-Based Work Permit $230

Visa Requirements For Digital Nomads in Canada

Digital nomads are increasingly attracted to Canada’s diverse and vibrant cities. However, unlike other countries, Canada does not have a specific "digital nomad visa." Digital nomads wishing to stay in Canada can apply for a visitor visa, but they are not allowed to work for Canadian employers unless they meet the requirements for a work permit.

Employers looking to hire digital nomads in Canada must be aware that remote work for foreign-based companies may not require a work permit if the employee is not entering the Canadian labor market. However, if the worker is providing services to Canadian clients, a work permit may be required.

  • Requirement 1: Proof of remote employment or freelance work for a foreign company.
  • Requirement 2: Evidence of sufficient funds to support themselves during their stay in Canada.
  • Requirement 3: A valid passport or other travel documents.

Employer Compliance & Obligations in Canada

Hiring foreign workers in Canada can present challenges, such as dealing with bureaucracy, meeting specific immigration requirements, and the potential delay in processing times. Understanding the different visa options, keeping up to date with regulatory changes, and working closely with immigration consultants can help alleviate these challenges.

  • Challenge 1: Navigating complex visa requirements and documentation for various work permits.
  • Challenge 2: Waiting for processing times, which may delay the hiring or relocation process.
  • Challenge 3: Managing compliance with immigration and labor laws to avoid legal issues.

Hire Global employees without hassle with an EOR solution

Expanding your workforce across international borders is an exciting step, but it can be a logistical nightmare to hire and pay employees in different countries. That’s the advantage of using a trusted Employer of Record like Playroll. They can:

  • Handle your international payroll: An EOR will act as your payroll provider, paying your employees on your behalf in the local currency. The company will also have in-depth knowledge of local tax codes, regulatory practices, and everything else that goes into managing global payroll.
  • Alleviate compliance concerns: Different countries each have their own federal and local laws governing employee payments. An EOR helps ensure that you are compliant with the unique set of laws for any country in which your company operates. This is extremely important since a compliance slip-up can result in heavy fines or even a lawsuit.
  • Hire and pay international contractors: Sometimes a particular project or role doesn’t require hiring a full-time employee. An EOR gives employers the flexibility to also hire contractors as needed, and avoid the potential for misclassification under local labor law.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Milani Notshe

Milani is a seasoned research and content specialist at Playroll, a leading Employer Of Record (EOR) provider. Backed by a strong background in Politics, Philosophy and Economics, she specializes in identifying emerging compliance and global HR trends to keep employers up to date on the global employment landscape.

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FAQs about Work Permits & Visas in Canada

Can Playroll sponsor a visa in Canada?

We don’t currently sponsor visas in Canada — but we can still help. Our in-house compliance team supports employers through every stage of the visa process: helping you compile documentation, set timelines, and coordinate with our network of trusted local immigration advisors.

If you’re looking to hire in Canada, book a demo and we’ll help you prepare, flag potential issues, and streamline the path to compliant onboarding.

What is the difference between a work permit and a work visa in Canada?

A work permit in Canada is a document that authorizes a foreign national to work in the country. A work visa, on the other hand, refers to the visa required to enter Canada for the purpose of working. While the terms are sometimes used interchangeably, a work visa is generally needed to enter Canada, whereas a work permit is required to perform work while in the country.

How long does it take to process a work permit or visa in Canada?

Processing times for Canadian work permits and visas typically range from a few weeks to several months, depending on the program and where the applicant applies from. Employer-specific work permits often take around 2 to 6 months once all documents, biometrics, and fees are submitted. Short-term business visitor visas or eTAs can be faster, sometimes within 2 to 8 weeks. Factors such as visa office workload, completeness of the application, security and medical checks, and seasonal demand can all affect how long a particular case will take.

What are the requirements for sponsoring a work permit or visa in Canada?

To sponsor a work permit in Canada, employers generally need to provide a genuine job offer that meets prevailing wage and working condition standards and demonstrate that their business is actively operating and compliant with Canadian laws. For many roles, they must obtain a positive Labour Market Impact Assessment (LMIA), or show that the position qualifies for an LMIA exemption under programs such as the International Mobility Program or intra-company transfers. Employers are expected to keep detailed records, pay government and compliance fees, and be prepared for potential inspections or audits. The foreign worker must meet the qualifications for the role and be admissible to Canada on medical, criminal, and security grounds. Practice may vary by program and province, so companies should always check current IRCC and, where applicable, provincial guidance before proceeding.

What types of work permits and visas are available in Canada?

Canada offers a variety of work permits and visas, each with specific eligibility criteria. The main types include the Temporary Work Permit, which is for foreign workers hired for a limited period; the Open Work Permit, which allows workers to work for any employer; the Post-Graduation Work Permit for international students who have completed their studies in Canada; and the LMIA-Based Work Permit, which requires employers to obtain a Labour Market Impact Assessment.