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To work in Canada, many internationals require a Positive LMIA (Labour Market Impact Assessment): this is a permit granted by the government to companies to hire foreigners after demonstrating that there are no Canadians available.
This process is often cumbersome and also lends itself to labor fraud because some employers, taking advantage of the worker's need, try to transfer administrative costs that by law are solely their responsibility.
In this blog, I will tell you what is happening with the positive LMIA process in Canada and the seriousness of accepting a "good faith agreement" to pay for the LMIA. Read on to the end and learn about a case in Alberta that led to the imprisonment of three employers.
When an employer processes a positive LMIA, they must pay ESDC an official administrative fee of CAD 1,000. If, once the process is complete, they ask the worker to "reimburse" the amounts invested, they are committing what is known as a breach. breach, that is, a breach of their legal obligations.
A breach is not a simple administrative error; it is a risky breach of the legal contract that the employer signed with the Canadian government when applying for the permit.
The fraud becomes evident when the employer attempts to charge not only the CAD 1,000, which is already fraudulent, but also amounts exceeding CAD 20,000, arguing that they must cover attorneys' fees, consultants' fees, and other "operating expenses."
Legally, this is a sham. All those costs, from government fees to legal representation, are solely and exclusively the responsibility of the company.
Important: No international worker, no matter how desperate they are for the job, should agree to cover this payment.
Not only is this against the law, it also violates your rights as a foreigner, and even if you are unaware of this, it encourages employers to feel they have the authority to transfer their obligations to their employees.
Many immigrants believe that signing an "amicable agreement" to pay for the LMIA is the only way to enter the labor market. Although you may feel that this is an opportunity to "get ahead," you should know that this thinking is not only misguided, but also legally invalid.
In Canada, no private contract has the power to override the protections of the IRPA (Immigration and Refugee Protection Act).
This federal law is the basis that guarantees that immigrants are not treated as commodities. The IRPA includes mechanisms specifically designed to prevent exploitation, recognizing that there is an unequal power relationship between employer and employee. The need to maintain their status or pay their monthly expenses should not put them at risk of becoming "slaves" to a corrupt system that only survives thanks to ignorance of the law.
You should know that your rights as an international worker are inalienable. Regardless of your country of origin, you are protected by a system in cities such as Ottawa or Calgary that values social justice and the integrity of the labor market. Do not allow a "good faith" agreement to become a tool for your own exploitation.
A case in 2026 in Calgary, Alberta, shook up the immigration industry and marked a turning point for employers. A judge sentenced three restaurant owners to 90 days in prison for charging their workers up to CAD 24,000 for LMIA procedures.
Is it worth evading the payment of CAD 1,000 directly to the government in exchange for going to prison? Is it fair to transfer the (exaggerated) LMIA payment to foreigners who come with the desire to contribute their labor to grow the country's economy?
These are questions that need to be considered, since Canada is a country with strong laws and open arms for immigrants, with no room for injustice due to the vulnerability of foreigners.
This precedent demonstrates that the system protects immigrants from exploitation and abuse of trust.
If you want to know the details of this story, watch the video: Labor abuse: employers in prison, on our YouTube channel.
Furthermore, fraud does not only occur in payment; it also exists when the employer alters the conditions of the applicable FTA (Free Trade Agreement) or closed work permit.
Attention: If you are hired for a technical position but are forced to perform cleaning tasks or work overtime without the legally required pay, your employer is in breach of their obligations to the government.
Do you need to know if your LMIA process is being conducted under the correct parameters, or do you feel that your employer is taking advantage of your situation? At Immiland Law Professional Corporation, we can assist you.
At Immiland Law Professional Corporation, we are Canadian lawyers and CICC-regulated consultants specializing in the processing of immigration documents.
If you are an employer and need to obtain permits, assistance, and evaluations for foreign workers, you can log in as an Employer and request a quote for our services.
If you are a foreign employee in Canada and feel that you are being exploited, do not hesitate to request employment advice from our team.
I hope this topic is useful and keeps you informed about your employment rights and responsibilities in Canada.
Thank you for reading. See you in the next blog !
With love,
Immiland Law Professional Corporation
