LMIA Compliance: How Employers Can Prepare for a Government Inspection
If your business hired a temporary foreign worker through a Labour Market Impact Assessment (LMIA), your obligations did not end when the worker arrived. Employment and Social Development Canada (ESDC) can inspect your business for up to six years after the worker started, and the penalties for getting it wrong are serious. Here is what employers need to know.
Why you might be inspected
ESDC can select your business for an inspection if:
they suspect you are not following the program rules
you have had compliance issues before
your business was chosen at random
there is a public health concern at your worksite
Being inspected does not mean you did something wrong. Many inspections are random.
What an inspection looks like
Inspections can be on-site or virtual, announced or unannounced, and do not require a warrant (except for private homes). Inspectors can interview you and your employees, including your foreign workers. They can request copies of documents, take photos or recordings, and examine your computers and devices.
What inspectors check
Inspectors compare what you promised in the job offer and LMIA with what actually happened. The key questions are:
Same job: Is the worker doing the job described in the offer?
Same pay: Are wages at least what was promised?
Same conditions: Are hours, duties and benefits no less favourable than the offer?
Same business: Are you still operating the same business?
Your commitments: Did you follow through on LMIA promises, such as hiring or training Canadians?
Accurate information: Was everything in your LMIA application true?
Safe workplace: Have you made reasonable efforts to keep the workplace free of abuse?
Employment laws: Are you following federal and provincial employment and recruitment laws?
Keep your records for six years
You must keep records for six years, starting from the first day of the work permit period. This includes your LMIA documents, the decision letter and its annexes, and proof that you met each condition.
Practical tip: keep one compliance file per foreign worker with the job offer, employment contract, pay stubs, timesheets, and proof of any training or Canadian hiring commitments. Update it every pay period, not when an inspector calls.
Report changes right away
If the job, wages or working conditions change, or you find an error in your LMIA, tell ESDC right away through the Employer Contact Centre at 1-800-367-5693. If you discover a compliance problem, ESDC has a voluntary disclosure process. Fixing and reporting a problem yourself is far better than having an inspector find it.
What happens if there is a problem
If the inspector finds an issue, you will first be asked to explain. A strong response covers why it happened, what you did to fix it, and what you changed so it does not happen again. If your explanation is not accepted, you will receive a Notice of Preliminary Finding and have 30 days to respond before a final decision is made.
The consequences
Employers found non-compliant can face:
a warning
fines of up to $100,000 per violation, to a maximum of $1 million per year
a ban from hiring foreign workers, which can be permanent for the most serious violations
publication of the business name on the government's public list of non-compliant employers
suspension or revocation of approved LMIAs
How we can help
Do not wait for the inspection letter. As a licensed immigration consultant (RCIC), Anahita Tohidi can review your compliance files, run a mock audit, and guide you through an inspection response. Book a consultation through our Book Online page.
Source: Government of Canada, Compliance information for employers hiring temporary foreign workers. This article is general information, not legal advice.
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