The New Employer Compliance Reviews

  • What's New?

  • What Are The Requirements?

  • What Are The Consequences?


What's New?

Canadian employers must ensure that Canadians and permanent residents have first access to available jobs, and the Temporary Foreign Worker Program (TFWP) should only be used as a last resort to fill acute labour shortages.

What Are The Requirements?

Employment and Social Development Canada (ESDC) requires that employers meet specific requirements to hire foreign workers, and that employers uphold the conditions agreed to as part of the issuance of a labour market impact assessment (LMIA). Employers of foreign workers should also be aware of their responsibilities under the Immigration and Refugee Protection Act (IRPA), and the Immigration and Refugee Protection Regulations (IRPR).

Are You Compliant?

If you, as an employer are using, or are interested in using the Temporary Foreign Worker Program TFWP to supplement your current workforce, please contact us to learn more on how you can ensure that you are compliant with the responsibilities under the Immigration and Refugee Protection Act (IRPA), the Immigration and Refugee Protection Regulations (IRPR) and ESDC rules.

What Are The Consequences?

Failure to comply with the rules may results in:

  • LMIA suspension or revocation,

  • Penalties and significant fines

  • A ban from accessing the Temporary Foreign Worker Program (TFWP).

  • Damage to employer brand

  • Significant disruption to operations

  • Significant legal defense fees

New Employer Compliance Review Regulations

New Employer Compliance Regulations regulations have modified the requirements for employer compliance reviews (Employer Compliance Review). Employer Compliance Reviews are different from inspections, they occur as part of the LMIA assessment process, and only review the wages, occupation, and working conditions provided to foreign workers employed under previous LMIAs.

Modifications To Employer Compliance Reviews

The modification to the Employer Compliance Review criteria only apply to LMIA applications submitted for on, or after, December 31, 2013. The 2 amendments that have been made are: ESDC will have authority to review an employer's compliance for the 6 years prior to the receipt of the LMIA application (previous legislation provided only a 2 year look back); and Employers applying for and receiving LMIAs on, or after, December 31, 2013 will be required to provide the "same" occupation to foreign workers (previously "substantially the same" occupation) as that set out in the offer of employment (and confirmed in the LMIA letter and annexes) and wages and working conditions that are substantially the same—but not less favourable than—those set out in the offer of employment (and confirmed in the LMIA letter and annexes). Demonstrating Compliance – Employer Compliance Reviews and Inspections Employers will always be notified that they have been selected for a compliance review, and what type (Employer Compliance Review or inspection). They will be informed in writing of the: steps they need to take; conditions for which they need demonstrate compliance; types of documents they are required to produce; and dates by which they are required to produce them.

Best Practices For Employer Compliance Reviews

Best practices for employers to ensure they remain compliant include: Retaining all documents to demonstrate that the information on the LMIA application and the terms and conditions set out in the LMIA letter and annexes were accurate from the first day of employment of the foreign worker and up to 6 years after; Contacting ESDC before making any changes to conditions set out in the LMIA letter and annexes; Cooperating with ESDC during compliance reviews; Working with authorized third-parties. Citizenship and Immigration Canada's (CIC) has a list of authorized representatives; Regularly checking the TFWP website for updates and changes.
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