LMIA (LMO) – Audits and Compliance

Prior to 2013, inspections by Citizenship Immigration Canada (CIC), Employment Social Development Canada (ESDC) or the Canada Border Service Agency (CBSA) to companies’ Temporary Foreign Worker Program (TFWP) were rare, and on-site visits were practically non-existent.

Now, by the government’s own acknowledgement, this will change dramatically. “In addition to massively increasing the number of inspections,” per an official ESDC paper, “the Government has recently significantly expanded the authority of inspectors to better catch employers who are breaking the rules.”[1]

Besides increasing the number of inspections, the Government has increased the scope to include “warrantless on-site visits” and “immediate” investigation of “complaints” (thanks to the creation of a new publicly accessible hotline). They have introduced a battery of fines and sanctions against employers “who break the rules” (see a non-exhaustive list below).

In addition, ESDC has introduced a whopping 18 additional criteria for examination on approved LMIA applications (and their renewals) all revolving around prior agreed-to “commitments” about the hiring of Canadians, job retention targets, training or the development of skills to Canadians, including skills transference.

Sample Employer Fines and Sanctions:

• Immediate LMIA (LMO) suspensions or revocations
• Ban on an employer’s eligibility for future LMIA applications
• Shaming of an employer by publically publishing the corporate name on a “blacklist”
• Fines of up to $100,000 for employers who break rules of the foreign worker program
• Criminal fines in breach of the Immigration Refugee and Protection Action (IRPA)

In short, Canadian employers will be heavily scrutinized and held accountable when allowed to hire a foreign worker. If a company did not “hold up to the bargain” when requesting a foreign worker, it will be asked to show cause.

Let our firm respond and, where required, “do the explaining” when it comes to audits and inspections on any aspect of your company’s temporary foreign worker program (TFWP).

We can also review your existing LMIA commitments and hiring policies (with respect to foreign workers) and assess if you meet the new TFWP requirements.

Firm deliverables for TFWP-related audits and inspections include:

• Representation on the employer’s behalf on all official correspondence
• Coordination with company stakeholders to deliver an acceptable response to ESDC/CIC or the CBSA with the aim to mitigate fines and sanctions – especially criminal sanctions
• Preparation of adjusted commitments and supplemental filings
• Interview preparation should a government agency contact an authorized company representative (owner, HR manager, recruiter)
• Review of existing LMIA (LMO) commitments for ESDC/CIC compliance with a “report card” or report of areas to work on or revise (in descending order of urgency)

[1] See the scary Overhauling the Temporary Foreign Worker Program: Putting Canadians First (Employment Social Development Canada, June 2014) p. 17.