YF Immigration Canada · Content sources checked 2026-10-26
Who inspects
ESDC inspects employers who hired through an LMIA; IRCC inspects employers who hired through the International Mobility Program. Inspections can be triggered by a tip, chosen at random or based on past non-compliance, and some are unannounced.
Your main obligations
Conditions vary by program, but generally include:
- Paying the wage and providing the working conditions and job duties stated in the offer
- Following federal and provincial employment and recruitment laws
- Making reasonable efforts to provide a workplace free of abuse
- Not charging workers recruitment fees
- Keeping documents that prove compliance for six years
Penalties
Penalties depend on the violation and business size. They can include warnings, administrative monetary penalties of up to $100,000 per violation (up to $1 million in a one-year period), bans from hiring foreign workers for 1, 2, 5 or 10 years or permanently, and publication of the business name on a public list.
How we help
We run pre-inspection reviews of payroll, schedules and records, help you respond to inspection letters on time, and prepare justifications where a discrepancy has a legitimate explanation.
Practical audit checklist before a notice arrives
Choose a sample of current and departed foreign workers and retrieve the same records an inspection could request. Check whether payroll, schedules, contracts, recruitment files and actual supervisor records can be reconciled. Establish where the documents are stored and whether they remain accessible if a worker or manager leaves. A folder containing only the application approval is not a complete employment-compliance file. Document the review date, responsible person, evidence gaps and steps assigned to correct them.
Review workers' permit conditions alongside actual assignments. Ask supervisors about changes in tasks, location, hours and interruptions, then compare the answers with the employer offer. Investigate discrepancies using original records rather than rewriting descriptions to make the documents agree. Keep the review factual and distinguish an administrative recording problem from a substantive employment change.
Check complaints and recruiter relationships as well as wages. A company can meet its payroll promises but still have problems with abuse safeguards or prohibited worker charges. Internal reporting must let issues reach someone who can take action. Record the investigation and response without discouraging workers from speaking to authorities.
If a notice arrives during the review, preserve all relevant versions and seek advice about the response and any disclosure. Do not delete embarrassing documents, create backdated evidence or ask workers to sign inaccurate confirmations. Missing records should be explained honestly. The goal is demonstrable compliance and an accurate response, not a paper trail manufactured after the fact.
Build an obligation register for each worker
Start with the LMIA and annexes or the submitted portal offer, employment agreement and work permit. Extract wage, duties, hours, location and program conditions into an internal register. Assign each obligation to payroll, human resources or management and identify records proving performance.
Different programs impose different obligations. Low-wage transport or housing records cannot be replaced by a generic IMP checklist. Identify the applicable conditions from government instructions and actual decisions rather than assuming all foreign employees have identical terms.
Reconcile payroll and actual work
Compare payroll, pay statements, time records and payment evidence with promised compensation. Investigate discrepancies while records and responsible people remain available. A signed agreement establishes the promise, not payment. Keep allowances and deductions clearly explained.
Review recruiter contracts, invoices and payment records to show who paid prohibited recruitment costs. An external recruiter does not remove employer responsibility. Check actual duties and locations with supervisors: correct payroll can coexist with unauthorized reassignment. Maintain a change log and assess notification or new-application requirements before implementing changes.
Worker protection and record retention
Evidence of an abuse-free workplace should include practical policy distribution, training and complaint handling, not only a policy title. Preserve responses to concerns and protect sensitive information. Workers must not be coached to provide particular answers during inspections.
Retain relevant recruitment, immigration and employment records for the applicable six-year period, including after a worker leaves or a manager changes. Ensure third-party payroll and recruiter records can be retrieved. Establish access and ownership so a departure or software change does not make compliance evidence unavailable.
Prepare an indexed response
Identify the program, workers, period, records requested and deadline in a notice. Appoint a response lead, preserve evidence and map each request to documents provided. Explain missing records and efforts to retrieve them instead of silently substituting unrelated items.
Where discrepancies exist, provide dates, factual explanations, calculations and corrective evidence. A good-faith error label alone does not establish a justification. Corrective payments or disclosure do not guarantee penalty avoidance. Use current official disclosure procedures and seek advice for complex findings. Budget staff time for retrieval and follow-up; there is no universal inspection duration that makes incomplete records safe.
Frequently asked questions
Official sources
Government rules, fees and wage thresholds change. This page is general information, not legal advice, and results vary by case.