LMIA Fraud and Abuse are all the fraudulent activities and unethical practices surrounding the Labour Market Impact Assessment (LMIA) Read more about What is an LMIA? These practices usually involve both employers and employees and are having  serious consequences for the Canadian immigration system, employers, and workers as I write this article today.

Different types of LMIA Fraud and Abuse In the Canadian Labour market :

1. Fake Job Offers
• Some employers or agents issue fraudulent job offers to foreign workers in exchange for money. In these cases, no real job exists, but applicants may unknowingly submit applications based on false promises.
• Ghost employers: In some cases, fake companies or non-existent employers issue job offers to foreign workers to make them eligible for immigration, exploiting both the workers and the Canadian immigration system.
2. Selling LMIAs
• Some unscrupulous employers or recruiters charge foreign workers large fees for an LMIA approval, which is illegal in Canada. Employers are prohibited from asking workers to pay for LMIA-related costs, but some may engage in this to profit from vulnerable immigrants.
3. Misrepresentation of Job Duties or Wages
• Employers may misrepresent the nature of the job or underreport wages in LMIA applications, promising one set of working conditions but offering another once the foreign worker arrives.
• Workers may be given positions at a lower skill level or paid below the prevailing wage rate required by the LMIA.
4. Non-compliance with LMIA Conditions
• Employers may violate the terms set in the LMIA after hiring foreign workers such as:
• Not paying the required wage
• Changing the job duties without proper notification
• Providing inadequate or unsafe working conditions
• Unfair working hours, and not adhering to employment standards (e.g., overtime pay, break periods)
5. Fake Recruitment Efforts
• Employers are required to demonstrate that they made genuine efforts to hire Canadian citizens or permanent residents before seeking foreign workers. In some cases, employers fabricate or falsify recruitment efforts to meet this requirement when, in reality, no such efforts were made.

 

What could be the possible consequences of LMIA Fraud and Abuse?

1. For Employers
• Fines and penalties: Employers found guilty of LMIA fraud can face significant fines (up to CAD $1 million) and criminal charges.
• Ban from hiring foreign workers: Employers can be banned from participating in the Temporary Foreign Worker Program (TFWP) or hiring foreign workers for a period of time.
• Revocation of LMIA: Positive LMIA approvals can be revoked if the employer is found to have committed fraud.
• Public Blacklisting: Non-compliant employers may be publicly listed on the government’s website.
2. For Workers
• Risk of deportation: Foreign workers involved in LMIA fraud, knowingly or unknowingly, may have their work permits cancelled, resulting in deportation.
• Exploitation: Foreign workers may be left in precarious situations, including poor working conditions or being trapped in debt after paying illegal fees. You can report work abuse from your employer here as a foreign worker : https://www.canada.ca/en/employment-social-development/services/foreign-workers/report-abuse.html
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3. For Immigration Integrity
• LMIA fraud undermines the integrity of Canada’s immigration and labor systems. It allows people to bypass proper procedures, which negatively affects the Canadian labor market and public confidence in the immigration system.
• Report Fraud here ; https://antifraudcentre-centreantifraude.ca/index-eng.htm

 

How to Identify and Report LMIA Fraud

1. For Workers:
• Know your rights: Workers should understand that they are not required to pay for an LMIA and should be aware of fair wages and working conditions.
• Check job offers: Verify job offers, contracts, and the legitimacy of employers through proper channels (e.g., contact Employment and Social Development Canada or seek legal advice).
2. For Employers:
• Avoid unethical recruiters: Employers should only work with accredited and trustworthy recruitment agencies to avoid being part of fraudulent schemes.
• Follow LMIA guidelines: Adhering to the LMIA rules and ensuring transparency in recruitment and hiring processes is essential.
3. Reporting Fraud:
• Individuals can report LMIA fraud to the Canada Border Services Agency (CBSA) at https://www.cbsa-asfc.gc.ca/security-securite/bwl-lsf-eng.html or Employment and Social Development Canada (ESDC) anonymously.
• Report Fraud here ;
• https://antifraudcentre-centreantifraude.ca/index-eng.htm
• https://www.canada.ca/en/employment-social-development/services/foreign-workers/report-abuse.html

 

Recent Measures to Combat LMIA Fraud- Year 2024

Recently there has been stringent measures and policy changes to the LMIA program. The Canadian government is further strengthening its enforcement by :

• Increasing inspections of employers participating in the Temporary Foreign Worker Program (TFWP) – Expect regular audits to be conducted with the changes in the LMIA regulations and policies post September 2024.
• Imposing hefty fines and lengthy bans for those found guilty of violating LMIA rules
• Using random audits and compliance reviews to ensure that employers adhere to the terms and conditions of LMIAs.

These measures help protect both the foreign workers and the integrity of Canada’s labor market.

Read more about LMIA process here: https://www.canada.ca/en/employment-social-development/services/foreign-workers.html

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