LMIA and Employer Compliance Issues
Understanding employer obligations when hiring temporary foreign workers and worker rights.
Last verified: 2026-04-03
What the Law Says
IRPA s.209.2 establishes the vulnerable worker open work permit program for workers in exploitative situations. IRPR s.203 requires employers to obtain a Labour Market Impact Assessment (LMIA) or use an exemption. Section 209.3 provides safeguards for vulnerable workers. IRPR s.206 specifies employer obligations including maintaining employment records, providing pay stubs, and ensuring minimum employment standards compliance. These provisions protect temporary foreign workers from exploitation.
What This Means for You
If you are a temporary foreign worker, your employer must comply with significant obligations under Canadian immigration law. These include employing you according to the terms approved in the LMIA, maintaining accurate records, providing proper pay, and adhering to provincial employment standards. If your employer breaches these obligations, you may have options to address the breach, including filing complaints with employment standards authorities or IRCC, or obtaining an open work permit if you are in a vulnerable situation.
If your employer violates LMIA conditions, withholds pay, subjects you to workplace abuse, or restricts your freedoms, you are not required to remain with that employer. You may be eligible for an open work permit that allows you to work for other employers. Additionally, exploitative working conditions may entitle you to recover lost wages or compensation.
Real Example
A temporary foreign worker was hired under an approved LMIA for a position in hospitality. The LMIA approved wages of $18/hour. However, the employer paid the worker $15/hour, withheld pay under the pretense of "deductions," and threatened to report the worker to immigration if they complained. The worker documented the pay stubs showing the reduced rate, the wage theft over six months, and the threats. The worker contacted IRCC and described the exploitative conditions. Based on the vulnerability circumstances, the worker applied for an open work permit under IRPR s.209.2. While the application was pending, the worker also filed a complaint with provincial employment standards authorities regarding wage theft. The worker pursued recovery of lost wages through employment standards arbitration. IRCC's investigation may also result in the employer's future LMIA applications being denied or the employer facing compliance sanctions.
What Options Exist
- 1Document all employment details including job offer, LMIA approval (if applicable), pay stubs, hours worked, and conditions of employment.
- 2Report wage theft or failure to pay minimum wage to provincial employment standards authorities. These agencies can investigate and order restitution.
- 3File a complaint with IRCC's Foreign Worker Program integrity branch if you believe your employer is violating LMIA conditions or recruiting conditions.
- 4Contact settlement services, immigrant support organizations, or legal aid clinics for guidance on your rights and next steps.
- 5Apply for an open work permit under the vulnerable worker provisions if you are experiencing exploitation or abuse. This requires documenting the exploitative conditions.
- 6Pursue civil claims against the employer for wage theft, unpaid overtime, or breach of contract through small claims court or civil litigation.
- 7Contact local police if you are experiencing trafficking, forced labor, or physical abuse. These are criminal matters that require law enforcement.
- 8Seek a stay of removal or other immigration remedies if facing removal while your LMIA or employment dispute is ongoing.
Employer Obligations
When an employer has obtained an LMIA, the employer must:
Violations of these obligations may result in IRCC issuing sanctions, denying future LMIA applications, or referring the employer to law enforcement for wage theft or trafficking offenses.
Where to File
Provincial Employment Standards
File complaints about wage theft, unpaid overtime, or violations of employment standards. Each province has an employment standards authority.
IRCC Foreign Worker Program Branch
Report employer breaches of LMIA conditions, recruitment violations, or vulnerable worker exploitation. Report online or through local office.
Provincial Labour Board
File for wage recovery or arbitration of employment disputes. Available in all provinces.
Canadian Labour Program
For federally regulated industries, report violations to Labour Canada's Foreign Worker Program.
Key Statutes
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Cite This Page
MyImmigrantRights.ca. "LMIA and Employer Compliance Issues." Accessed April 3, 2026. https://myimmigrantrights.ca/issues/lmia-employer-compliance
Written by the MyImmigrantRights.ca team, based on comprehensive research of Canadian immigration law, IRPA, the Citizenship Act, and IRCC policy guidance.