Canada Implements New LMIA Rules to Curb Fraud and Strengthen Recruitment Standards
As of September 2025, the Canadian government has rolled out stricter regulations for the Labour Market Impact Assessment (LMIA) process. These changes are designed to reduce fraudulent job offers, ensure fair recruitment practices, and give Canadian workers priority access to job opportunities before employers turn to the Temporary Foreign Worker Program (TFWP).
At the core of this reform is a mandatory requirement for employers to use the Job Bank Direct Apply feature when posting LMIA-related job advertisements. This change aims to create more accountability and transparency in the hiring process.
Addressing Past Concerns in LMIA Recruitment
Previously, some employers were accused of posting jobs on Job Bank as a formality without genuinely engaging with Canadian applicants. This practice fueled concerns that certain postings were primarily meant to justify hiring foreign workers instead of providing real opportunities to domestic job seekers.
With the new rules:
- Employers must now actively review resumes submitted through Job Bank within 21 days.
- Failure to do so could result in the removal of their job postings, delays in LMIA approval, or even application refusals.
- Employers are also required to provide at least one additional application method (email, website, or in-person) alongside Direct Apply to ensure broader accessibility.
This reform ensures that domestic talent is given a fair chance before employers are permitted to hire temporary foreign workers.
Step-by-Step: How Employers Must Comply
- Post on Job Bank with Direct Apply enabled (mandatory).
- Add another method of application such as email or website form (required).
- Review all applications received through Direct Apply within 21 days.
- Document recruitment efforts to support LMIA compliance.
- Retain records of recruitment activities for at least six years in case of government audits.
For employers in low-wage streams, the rule continues to require at least three recruitment methods, including targeted outreach to underrepresented groups.
Impacts on Employers
- Opportunities:
- Access to a centralized pool of job seekers.
- Reduced risk of fraudulent or superficial postings.
- Easier record-keeping with Job Bank’s resume storage system.
- Challenges:
- Administrative burden due to the 21-day resume review requirement.
- Potential delays in LMIA approval if domestic candidates are ignored.
- Small businesses may need additional HR resources to stay compliant.
Impacts on Canadian Job Seekers
For Canadian workers, this change is a significant win:
- Direct Apply ensures faster and easier applications.
- Employers are legally required to review resumes, reducing the chances of being overlooked.
- Job seekers get more clarity and transparency about how applications are handled.
Implications for Temporary Foreign Workers (TFWs)
While the reform prioritizes Canadian workers, it does not eliminate the role of TFWs. Instead, it ensures that LMIAs are only approved when there is a clear labour shortage. This strengthens the integrity of the program and protects foreign workers from being used in exploitative or fraudulent job arrangements.
Special Note: Agriculture Advertising Rules Returning in 2026
A related update impacts Canada’s agriculture sector. Since January 2022, advertising requirements for primary agriculture LMIA applications were temporarily suspended due to pandemic-related labour shortages. That suspension will end on December 31, 2025.
From January 1, 2026, employers in agriculture will once again need to follow full recruitment rules, including posting jobs on Job Bank with Direct Apply enabled. This will ensure greater efforts to hire locally before relying on temporary foreign workers for seasonal positions.
Why These Changes Matter
- Strengthens fairness in recruitment.
- Protects Canadian workers by ensuring they are considered first.
- Reduces fraudulent LMIA job offers and exploitation.
- Ensures foreign workers are hired only when no Canadian is available.
- Builds a more transparent, efficient, and accountable hiring system across Canada.
This reform is not just about regulatory compliance — it represents a stronger commitment to building a fairer labour market and protecting both Canadian and foreign workers.
For a consultation about Immigration options, reach out to the CAD IMMIGRATION today!
