Employer Compliance for Temporary Foreign Workers in Canada

Whether you hired through an LMIA or an LMIA-exempt route such as an intra-company transfer or CUSMA, you must:

• Provide the job you offered: the same occupation, wages, and working conditions (or substantially the same but not less favorable) as in the LMIA or offer of employment
• Be actively engaged in the business described in the offer
• Follow federal and provincial laws on employment and recruitment in the province where the worker works
• Make reasonable efforts to provide a workplace free of abuse, including physical, sexual, psychological, and financial abuse, and reprisal
• Give the worker a signed employment agreement in English or French, matching the offer, on or before the first day of work
• Give the worker information about their rights in Canada, in the form IRCC provides
• Not charge or recover recruitment fees from the worker, directly or through a recruiter, and make sure your recruiters don't either
• Not keep the worker's passport or work permit
• Make sure the worker has health care coverage until they're covered by the provincial plan, where program rules require it
• Keep documents that show you met the conditions, for 6 years
• Cooperate with inspections and provide documents when asked

Low-wage LMIA employers have extra duties: round-trip transportation, suitable and affordable housing (under 30% of the worker's pre-tax income), and private emergency health insurance until provincial coverage begins. Global Talent Stream employers must also meet their Labour Market Benefits Plan commitments.

Who. ESDC's Integrity Services inspect employers of LMIA-based workers. IRCC inspects employers who hired through the International Mobility Program (LMIA-exempt routes, for which you paid the CAD $230 employer compliance fee).

When. Inspections can happen for up to 6 years after the work period starts. They may be triggered by a tip, past non-compliance, or random selection. Many are unannounced site visits.

What they ask for. Payroll records, time sheets, employment contracts, proof of recruitment, housing details for low-wage and agricultural workers, and interviews with workers and managers.

Justifications. Some differences can be justified, such as a change in federal or provincial law, a collective agreement, an honest administrative error corrected promptly, or a significant unforeseeable economic change. Document the reason as it happens.

Voluntary disclosure. If you find a mistake yourself, such as underpaying a worker, fix it, pay any back wages, and document what happened. Officers may take problems you corrected before an inspection into account.

Tip line. Workers and the public can report suspected abuse confidentially to Service Canada. Workers facing abuse may qualify for a vulnerable worker open work permit, which lets them leave the employer.

Penalty size depends on the violation type, the size of your business, and your history. A ban and public listing can hurt your reputation far more than the fine.

Keep these for 6 years from the first day of each worker's authorized work period:

• The LMIA application, decision, and job offer, or the LMIA-exempt offer submitted in the Employer Portal
• The signed employment agreement and any amendments
• Payroll records, pay stubs, time sheets, and records of deductions
• Recruitment proof (ads, Job Bank records, applicant lists, reasons for not hiring Canadians)
• Your transition plan or Labour Market Benefits Plan and progress evidence
• Housing and transportation records for low-wage and agricultural workers
• Health insurance policies
• Proof you gave the worker the rights information

Store them so you can produce them quickly if an officer asks.

An employer-specific work permit ties the worker to your company, the job, and usually the location.

• Wage increases are allowed and encouraged. Wage cuts below the approved rate are not.
• Promotions or new duties that change the occupation usually need a new LMIA (or new offer) and a new work permit.
• Moving the worker to a location not on the permit usually needs a new permit.
• Layoffs and reduced hours can breach conditions unless a justification applies; get advice first.
• Leaving your company. A worker who wants to change employers needs a new permit, and the new employer needs its own LMIA or exemption.

If the worker is moving toward permanent residence, see PNP employer streams, the Atlantic Immigration Program, and the RCIP.

1. Compare each worker's pay stub with the wage in the LMIA or offer every pay period.
2. Confirm duties and location still match the permit.
3. Keep signed employment agreements and the rights information on file.
4. Check your recruiters' contracts forbid charging workers.
5. Inspect housing and document rent for low-wage and farm workers.
6. Track permit expiry dates and start renewals early. See extending your status and maintained status.
7. Train supervisors on abuse prevention and how workers can raise complaints.
8. Store all records for 6 years.