For HR professionals managing international recruitment, the LMIA process often feels like a balancing act, between hiring urgency and federal compliance. And yet, 2025 marks a turning point: LMIA refusal rates are rising, especially in sectors facing labour shortages.
Recent audits from Employment and Social Development Canada (ESDC) indicate that employers are increasingly penalized not for malicious intent, but for documentation errors, missing proof, or unjustified contract terms.
This article outlines the five most common LMIA mistakes and gives HR teams a strategic roadmap to avoid them. Whether you’re hiring a cook, an engineer, or a warehouse manager, these insights apply across NOC codes and industries.
Between April and September 2024, Service Canada audited hundreds of employers. 11% were found non-compliant, and penalties exceeded $2.1 million CAD. In nearly every case, the initial red flags could have been spotted earlier, during the LMIA application itself.
Why? Because ESDC has redefined its priorities. Incomplete recruitment documentation, wage discrepancies, or vague role descriptions are now interpreted as signs of insufficient labour market testing.
HR Insight: If your LMIA is denied, it can delay onboarding by 6–9 weeks, disrupt operations, and raise red flags for future applications, especially if tied to a work permit already in process.
If your job ads are missing required elements (like median wage, hours, or exact job location) your application risks immediate rejection. Reusing internal HR templates or forgetting to specify the NOC code is common but costly.
HR Fix: Use Job Bank templates. Confirm NOC alignment. Publish on at least 3 distinct platforms for 28 days.
Posting ads is only half the battle. You must also submit screenshots, links, dates, and full ad text as part of your LMIA file. Omitting any element is viewed as a failure to meet the labour market test.
HR Fix: Create a digital recruitment folder. Save timestamped screenshots with publication and closing dates for each platform.
For roles paying above the regional median, employers must submit a transition plan explaining how they’ll reduce reliance on foreign workers. Generic statements like “We’ll train Canadians” are insufficient.
HR Fix: Detail mentorship plans, upskilling strategies, and internal succession targets in year-by-year format.
If the offered salary is below Job Bank median, or the contract omits guaranteed hours or end dates, your file will be flagged. Part-time roles and variable wages require strong business justification.
HR Fix: Use Job Bank Wage Lookup. Add an explanatory letter for non-standard offers, especially in seasonal industries.
Frequent errors include: unsigned contracts, missing employer IDs, and use of expired LMIA forms. These aren't just admin issues, they can void your entire submission.
HR Fix: Run a pre-submission compliance review. Assign a second reviewer or engage an RCIC.
A refused LMIA doesn’t just delay recruitment, it undermines your compliance record and can complicate future audits or applications.
For the foreign worker, the stakes are even higher:
HR Note: If the worker’s permit depends on your LMIA, the clock starts ticking the moment your application is denied.
Before you submit your LMIA, confirm the following:
Missing any of these could lead to rejection, audits, or delays.
Your first step is to request the refusal rationale from ESDC. Then, conduct a gap analysis with your HR/legal team:
AskAïa can support your review process or refer you to an RCIC for case strategy.
A rejected LMIA isn’t just paperwork; it can trigger compliance reviews, delay hiring, and put your work permit pipeline at risk. In 2025, immigration audits are increasing across all sectors.
Need to protect your hiring process?
Download the Work Permit Risk Playbook or book a free Immigration Audit Call with AskAïa to assess your risks and activate your centralized immigration tracker.