Top 5 Mistakes Employers Make When Hiring Foreign Workers in Canada

Canada’s labor market depends heavily on skilled foreign workers. From tech companies to construction firms, employers often turn to international talent to fill critical roles. But hiring foreign workers in Canada isn’t as simple as extending a job offer. Employers must navigate complex immigration, compliance, and recruitment requirements, especially when a Labour Market Impact Assessment (LMIA) is involved. Even well-meaning companies often make costly mistakes that lead to delays, refusals, penalties, or even bans from hiring foreign workers in the future. Here are the top 5 mistakes employers make when hiring foreign workers in Canada—and how to avoid them.

1. Failing to Follow Proper LMIA Recruitment Requirements

If you’re hiring a foreign worker under the Temporary Foreign Worker Program (TFWP), you’ll usually need a positive LMIA. To get one, you must prove there are no qualified Canadians available for the job—and this means following strict advertising rules.

Common mistakes include:

- Using incorrect job titles or NOC codes in job postings

- Not advertising on the required job platforms for the full duration

- Omitting mandatory job details like wages, hours, and benefits

- Ending recruitment too early or changing the ad mid-process

These errors often lead to LMIA refusals—even if the foreign worker is truly needed.

How to avoid it:

Work with an experienced immigration professional to ensure your recruitment campaign meets Service Canada’s exact requirements.

2. Assuming LMIA-Exempt Work Permits Don’t Require Documentation

Many work permits are LMIA-exempt under the International Mobility Program (IMP), such as:

- Intra-Company Transfers- CUSMA (formerly NAFTA) professionals, investors, and traders

- Significant benefit work permitsBut “LMIA-exempt” doesn’t mean no paperwork.

Employers must still:

- Submit an offer of employment through the Employer Portal

- Pay the $230 compliance fee

- Provide the foreign worker with a valid offer of employment number

Failing to meet these steps can result in the foreign worker being denied entry at the border or refused a work permit.

How to avoid it:

Even if no LMIA is needed, treat LMIA-exempt hiring just as seriously and stay compliant with IRCC’s requirements.

3. Misclassifying the Job or Selecting the Wrong Work Permit Category

Another common mistake is assuming “any work permit” will do. For example:

- Assigning a job title that doesn’t match the actual duties

- Using the wrong National Occupation Classification (NOC) code

- Trying to apply for a CUSMA professional permit for a role not listed under the agreement

- Choosing an LMIA when an LMIA-exempt option would have been faster

Misclassification can result in work permit refusals, wasted time, and financial loss.

How to avoid it:

Have an immigration lawyer review the job duties, NOC code, and potential work permit options before starting the process.

4. Ignoring Employer Compliance Obligations After Hiring

Hiring doesn’t end once the foreign worker arrives. Employers must remain compliant with post-hire obligations, including:

- Ensuring the worker performs only the duties listed in the LMIA or work permit application- Paying the exact wage rate promised in the application

- Keeping detailed records of employment, wages, and recruitment for at least six years

- Informing Service Canada or IRCC of any material changes in the worker’s role

Random employer compliance inspections can occur at any time. Non-compliance can result in fines, bans from hiring foreign workers, and reputational damage. How to avoid it:Maintain thorough employment records and conduct internal compliance reviews to ensure you’re meeting all program requirements.

5. Waiting Until the Last Minute

One of the biggest mistakes employers make is leaving the process too late. LMIA applications can take weeks to months, and even LMIA-exempt work permits require careful preparation. If the foreign worker has a tight start date or needs to travel urgently, rushing the process often leads to incomplete applications and refusal.

How to avoid it:

Plan well in advance. Ideally, consult an immigration lawyer before making a job offer so you know which process to follow and how long it will take.

Bonus: Not Considering Permanent Residence Options Early

Many employers focus only on temporary work permits, forgetting to plan for long-term retention.Some foreign workers may be eligible for Provincial Nominee Programs (PNPs) or Express Entry pathways that lead to permanent residence. Helping your worker obtain PR can reduce turnover and provide long-term stability for your workforce.How to avoid it:Discuss permanent residence strategies at the start. A well-planned approach can benefit both the worker and the company.

What Happens if Employers Don’t Comply?

Canadian immigration authorities take employer compliance seriously. If your company is found non-compliant with LMIA or LMIA-exempt hiring requirements, you could face:

- Monetary penalties – Fines ranging from $500 to $100,000 per violation, up to a maximum of $1 million per year

- Hiring bans – Temporary or permanent bans from hiring foreign workers under the Temporary Foreign Worker Program (TFWP) or International Mobility Program (IMP)

- Revocation of LMIAs or work permits – Existing work permits can be canceled if the employment conditions are not being met

- Public disclosure – Your company’s name could appear on a public non-compliance list, damaging your reputation

- Increased inspections – Non-compliant employers may face more frequent audits and inspections

These penalties can disrupt your workforce, harm your business reputation, and even trigger future immigration refusals for your company.

Why Work with an Immigration Lawyer?

Hiring foreign workers in Canada involves multiple government departments, strict documentation, and ongoing compliance obligations.

At Tchern McCallum Immigration Law, we help Canadian employers by:

- Advising on the best hiring strategy (LMIA vs. LMIA-exempt)

- Preparing accurate LMIA applications with compliant recruitment efforts

- Submitting LMIA-exempt offers through the Employer Portal

- Guiding you on employer compliance obligations and record-keeping

- Exploring permanent residence pathways for key employees

With proper planning and guidance, you can build your team with the talent you need—without risking delays or penalties.

Hiring Foreign Workers? Let’s Do It Right.

Whether you need an LMIA, an Intra-Company Transfer, or a CUSMA work permit, we’ll help you navigate the process with confidence.

Contact Tchern McCallum Immigration Law today to book a consultation and ensure your foreign hiring process is smooth, compliant, and stress-free.

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