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.
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:
| Record Type | Retention Period | Format |
| Recruitment Records | At least 6 years after the hiring decision | Digital or hard copy |
| Employment Contracts | 6 years after employment ends | Signed originals or scans |
| Payroll Records | 6 years after payment date | Payroll system or statements |
| Work Permit Copies | While employment continues + 6 years | PDF or photocopy |
| LMIA Decision Letters | 6 years after LMIA issuance | Digital file recommended |
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.
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.
| Stage | Action Required |
| Before Hiring | Conduct recruitment, collect proofs, and submit LMIA. |
| At Start of Employment | Issue signed contract, copy work permit, set up records. |
| Year 1 | Review records for accuracy and completeness. |
| Years 2–5 | Keep records accessible and update as needed. |
| Year 6 | Prepare records for secure disposal if allowed. |
Reminder: Calendar alerts help ensure nothing slips through the cracks.
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.
Example: A logistics firm cut compliance errors by 60% after implementing quarterly workshops and assigning a compliance officer.
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:
Explore common pitfalls in Top Employer Mistakes That Lead to LMIA Refusals.
Use this checklist to confirm you have every essential process in place.
| Category | Compliant Employer | Non-Compliant Employer |
| Eligibility to Hire TFWs | Maintained | Suspended or revoked |
| Fines and Penalties | None or minimal risk | Up to $100,000 per violation |
| Insurance Premiums | Stable or minor increases | Higher premiums or exclusions |
| Contract Opportunities | Eligible for public and private bids | Disqualified for 1–5 years |
| Reputation | Positive employer brand | Public listing as non-compliant |
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.