Master LMIA Compliance: Best Practices for Policies and Record-Keeping

For Canadian employers, LMIA compliance is far more than securing initial approvals, it’s an ongoing obligation rooted in clear policies and rigorous record-keeping. Employment and Social Development Canada (ESDC) reports that roughly 2,100 employer inspections were carried out in fiscal 2022‑2023, with 94 % found compliant—meaning only about 6 % showed at least one infraction. Even minor lapses can lead to fines, suspension of hiring privileges, and publication on the federal list of non‑compliant employers.

Understanding LMIA Record-Keeping Requirements

Maintaining comprehensive records is the foundation of LMIA compliance. Without proper documentation, it becomes nearly impossible to prove that you’ve met your obligations as an employer.

Key Requirements:

• Retention Period: Six years from the start of employment.
• Required Documents:
  •  Recruitment efforts and advertising proofs.
  • Signed job offers and contracts.
  • Payroll records showing wage payments.
  • Copies of work permits and LMIA decisions.
•  Access: You must be able to provide records promptly.

LMIA Record-Keeping at a Glance

Developing Clear Compliance Policies

Strong compliance policies ensure that everyone in your organization understands their responsibilities. They also make it easier to maintain consistency over time, even when your team changes.

Best Practices for Policy Development:

• Assign a compliance officer or senior HR lead.
• Create a written policy manual defining who collects, stores, and audits records.
• Use a compliance calendar to track deadlines for renewals and retention.
• Review and update policies annually to reflect changes in regulations.

A Compliance Timeline to Guide Your Process

Having a clear timeline makes it easier to stay organized and avoid missing important deadlines. This timeline outlines when and how to act at each stage of the LMIA process.

LMIA Compliance Timeline

Reminder: Calendar alerts help ensure nothing slips through the cracks.

Training HR Teams Effectively

Training ensures that your policies don’t just exist on paper but actually guide day-to-day actions. When HR staff know what to do, mistakes are less likely.

Training Essentials:

• Hold annual refresher sessions.
• Develop quick-reference guides for processes and timelines.
• Run scenario-based workshops, such as mock inspections or audits.
• Include LMIA training in onboarding.

Example: A logistics firm cut compliance errors by 60% after implementing quarterly workshops and assigning a compliance officer.

Using Digital Tools to Simplify Compliance

Technology makes it easier to keep records organized, secure, and accessible when needed. Digital tools can also save time and reduce human error.

Recommended Solutions:

• Secure cloud storage for contracts and documents.
• Compliance software with automated reminders.
• Digital audit trails to prove when files were created and updated.
• Access controls to protect sensitive records.

Explore common pitfalls in Top Employer Mistakes That Lead to LMIA Refusals.

Your LMIA Compliance Checklist

Use this checklist to confirm you have every essential process in place.

1. Assign a compliance officer or HR lead.
2. Create a policy manual outlining processes.
3. Collect and store all recruitment and payroll records.
4. Schedule annual training sessions for HR teams.
5. Use a compliance calendar and digital reminders.
6. Retain all documentation for six years.
7. Conduct annual self-audits to identify gaps.

Compliance vs. Non-Compliance: What’s at Stake?

LMIA compliance isn’t just a checkbox, it’s a continuous commitment. With clear policies, engaged HR teams, and digital tools, you’ll protect your contracts, your reputation, and your employees.

Don’t leave compliance to chance. Download our free Work Permit Risk Playbook and get practical strategies to protect your business from costly mistakes.  Even reputable, well-resourced employers have faced penalties for preventable mistakes. The best defense is readiness.