After Approval: LMIA Compliance and the 6-Year Audit Rule (2025)

Getting an LMIA approved is a win, but it’s not the finish line. For HR teams, the true compliance challenge begins after the foreign worker is hired. As of 2025, penalties for post-approval violations have doubled, and Service Canada is expanding audits on employers years after the LMIA decision.

In this article, we explain what your company must do after receiving a positive LMIA, what to document, how long to keep it, and what triggers inspections.

LMIA Approval Is Just the Start

Once your LMIA is approved and your foreign hire starts working, your obligations as an employer shift into long-term compliance mode.

Service Canada may conduct random or targeted inspections at any time in the 6 years following employment. If you can’t provide proof of compliance, you risk:

• Fines of up to $100,000 per violation
• Temporary or permanent bans from the LMIA program
• Public listing as a non-compliant employer

Post-LMIA Employer Obligations

You must ensure the worker:

• Is paid the wage stated in your LMIA
• Performs the duties listed in the application
• Works the hours and schedule promised
• Receives benefits and housing (if applicable) as stated
• Is not moved between locations or roles without prior authorization

The 6-Year Rule: What You Must Keep on File

By law, employers must retain all records for 6 years from the first day of employment. This includes:

• LMIA decision letter & application package
• Employment contract & signed offer
• Time sheets & schedules
• Wage payment records (pay stubs, bank proof)
• Tax remittances & T4s
• Proof of benefits or housing (if applicable) 
• Recruitment records and job postings

Service Canada may request these at any time, even years after the worker has left.

What Triggers a Compliance Audit?

Your company may be selected for inspection if:

• The worker files a complaint
• You apply for multiple LMIAs in the same role
• You're in a high-risk sector (e.g., retail, construction, agriculture)
• Your file has inconsistencies (e.g., salary below market rate)

In 2024 alone, 11% of inspected employers were found non-compliant, and 20 companies were banned from the program, a fivefold increase from the previous year. 

Penalties and Public Exposure

The consequences of non-compliance are serious and long-lasting:

Once listed publicly, it becomes harder to hire foreign workers, even in other programs.

Common HR Gaps in LMIA Compliance

Even well-organized HR departments often fall short in areas like:

• Fragmented file storage across different systems or folders
• Staff turnover, leading to undocumented processes or missing case knowledge
• Inconsistent record retention between payroll, HR, and operations
• Untracked changes in roles, wages, or job locations during the worker’s stay

Tip: Use a shared compliance checklist across your HRIS, payroll, and immigration teams to stay aligned.

How to Stay Audit-Ready

HR teams should:

• Use centralized HR systems to store LMIA files
• Conduct internal compliance audits annually
• Keep payroll, time-tracking, and job descriptions synced
• Work with immigration advisors to update LMIAs when changes occur

Quick Checklist: Is Your LMIA File Audit-Ready?

• Job ads and recruitment proof saved with timestamps
• Contract and duties match the LMIA application
• Wage, hours, and schedule records are up to date
• Changes in location or role are reflected in permits
• Payroll and tax records are accessible and synced
• All documentation retained for 6 years by employee name

LMIA Compliance Is a Long Game

Your responsibility doesn’t end when the LMIA is approved, it continues for 6 years. The best way to stay safe is to treat LMIA compliance like a long-term legal obligation, not just an immigration step.

Not sure if your file would pass an audit? Book a free LMIA compliance check with AskAïa’s experts today.