With the upcoming closure of the Labour Market Impact Assessment (LMIA) Low-Wage Stream, many Canadian employers find themselves scrambling to navigate the final stages of the hiring process for foreign workers. As the window to use this essential tool closes, employers must ensure that they are fully compliant with the rules and avoid common pitfalls that could jeopardize their ability to hire foreign workers.

Mistakes made during this crucial period can result in delayed or rejected applications, fines, and, in the worst cases, restrictions on future hiring of foreign nationals. In this blog, we will explore the top five mistakes employers make before the LMIA Low-Wage Stream closes, and how you can avoid them to ensure a smooth hiring process.

1. Mistake #1: Missing the Application Deadline

One of the most common mistakes employers make when the LMIA Low-Wage Stream is closing is failing to submit their applications on time. The deadline for new LMIA applications under the Low-Wage Stream is quickly approaching, and any employer who misses it will no longer be able to hire foreign workers under this program. This can have serious consequences, especially for industries that rely heavily on foreign labour to meet their staffing needs.

How to Avoid This Mistake:

To avoid missing the deadline, employers should prioritize submitting all final LMIA applications as soon as possible. Delaying the submission process increases the risk of missing the cut-off date, especially if there are any complications or errors with the application that need to be resolved.

Create a timeline to track the application process and ensure that all supporting documents are prepared in advance. Working with an immigration lawyer or consultant can also help you expedite the process and ensure that everything is in order before submission.

2. Mistake #2: Incomplete or Inaccurate Applications

A major issue that often leads to delays or outright rejection of LMIA applications is submitting incomplete or inaccurate information. Errors such as missing documents, incomplete job descriptions, or incorrect wage details can result in significant delays or even the refusal of your LMIA application.

Given that time is running out before the LMIA Low-Wage Stream closes, even minor errors can cause employers to miss the opportunity to hire foreign workers.

How to Avoid This Mistake:

Before submitting an LMIA application, carefully review all details to ensure that the application is complete and accurate. Double-check important information such as job titles, wages, working conditions, and the documents required for the application, including proof of recruitment efforts to hire Canadian workers.

Employers should also ensure that the wages offered align with the required provincial or territorial median wage levels. Discrepancies between what is stated in the LMIA and what is actually offered to the foreign worker could lead to compliance issues later on.

Consider working with an immigration professional to review your application and correct any errors before submitting it to avoid unnecessary delays.

3. Mistake #3: Failure to Meet Recruitment Requirements

One of the fundamental aspects of the LMIA process is proving that there were no qualified Canadian citizens or permanent residents available to fill the position. Many employers fail to meet the stringent recruitment requirements, either because they haven’t conducted enough recruitment efforts or because their recruitment activities are not properly documented. This can result in the rejection of their LMIA application.

How to Avoid This Mistake:

To meet the recruitment requirements for an LMIA, employers must show that they have made genuine efforts to recruit Canadian workers before turning to foreign workers. This typically includes:

• Posting the job advertisement on the Government of Canada’s Job Bank

• Advertising in at least two other sources, such as online job boards, industry-specific job sites, or newspapers

• Providing details on the recruitment efforts, including the duration of job postings, and results of interviews with Canadian applicants

Be sure to maintain clear records of your recruitment efforts, including copies of job postings, applications received, and notes from interviews. Failing to properly document these efforts can lead to complications during the LMIA assessment.

4. Mistake #4: Offering Below the Median Wage

When applying for an LMIA, particularly under the Low-Wage Stream, employers are required to offer wages that meet or exceed the median hourly wage for the province or territory in which the foreign worker will be employed. Offering wages below this level is a common mistake that leads to rejected applications.

Many employers make this mistake because they assume that the LMIA Low-Wage Stream allows for any wage level below the provincial median. However, the wage must still align with the standard for the specific job category and industry. Offering wages that are too low can result in non-compliance with Canadian labour standards.

How to Avoid This Mistake:

To avoid this error, employers should research the median wage for their province or territory and ensure that the wages offered meet or exceed this level. The wage level should also be competitive enough to attract Canadian workers, as offering below-market wages can lead to a failure in recruitment efforts.

Employers should regularly review wage data for their industry and ensure that their LMIA applications reflect the appropriate wage standards. Wage data is available on the Government of Canada’s Job Bank and can be used to determine the prevailing wage rates for specific positions.

5. Mistake #5: Non-Compliance with LMIA Conditions

After an LMIA is approved, employers are required to comply with all conditions set out in the approval. Common mistakes include failing to offer the wages promised in the LMIA application, altering the job duties without notifying the relevant authorities, or providing different working conditions than those specified.

Non-compliance with LMIA conditions can result in serious penalties, including fines, and being barred from hiring foreign workers in the future. The Government of Canada takes LMIA compliance seriously, and employers may be subject to inspections or audits to ensure that they are meeting their obligations.

How to Avoid This Mistake:

Once your LMIA is approved, make sure to closely follow all the conditions outlined in the approval. This includes:

• Offering the agreed-upon wage

• Ensuring that the job duties and working conditions match what was stated in the LMIA application

• Adhering to the timeline for the foreign worker’s employment

To avoid compliance issues, regularly review the terms of your LMIA approval and monitor your employment practices to ensure they align with these terms. Employers should also stay informed about any changes to Canadian labour laws that may affect their obligations under an LMIA.

6. Conclusion: Act Now and Avoid Costly Mistakes

With the LMIA Low-Wage Stream closure fast approaching, employers must act quickly and avoid the common mistakes that can lead to rejected applications or compliance issues. By submitting applications early, ensuring accuracy, meeting recruitment requirements, offering competitive wages, and adhering to LMIA conditions, employers can successfully navigate the final stages of the LMIA process.

If you’re unsure how to proceed or need assistance with your LMIA application, consulting with an immigration lawyer or consultant can help you avoid costly mistakes and ensure that your business remains compliant with Canadian immigration laws.

Don’t wait until it’s too late—act now to avoid these common pitfalls and secure the foreign workers your business needs.

This blog is aimed at helping employers avoid common mistakes and ensure a smooth LMIA application process as the Low-Wage Stream comes to a close. Let me know if you’d like to adjust or add anything!