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Foreign workers coming to Canada under the Temporary Foreign Worker Program (TFWP) often ask whether employers are allowed to charge them LMIA (Labour Market Impact Assessment) fees.?The answer is clear and strict under Canadian law: employers are not allowed to pass LMIA costs to workers.
Understanding this rule is critical to avoid exploitation, illegal recruitment practices, and potential immigration violations.
1. What Is an LMIA Fee?
An LMIA is a document issued by Employment and Social Development Canada (ESDC) that allows an employer to hire a foreign worker when no Canadian or permanent resident is available.
• The standard LMIA processing fee is CAD 1,000 per position
• The fee is paid to the Canadian government
• It is non-refundable, even if the application is refused
2. Can Employers Legally Charge LMIA Fees to Workers?
No.
Canadian immigration law strictly prohibits employers from recovering LMIA costs from foreign workers.
This includes:
• Direct charges
• Salary deductions
• Reimbursement requests
• Hidden fees included in contracts
• Payments demanded through recruiters or agents
If a worker is asked to pay LMIA fees, it is considered non-compliance.
3. Who Must Pay the LMIA Fee?
The employer alone is responsible for paying:
• LMIA application fees
• Advertising and recruitment costs
• Compliance-related expenses
Workers should never be asked to cover these costs.
4. What About Recruitment or Placement Fees?
In most Canadian provinces, employers are also prohibited from charging workers:
• Recruitment fees
• Placement fees
• Processing fees
• Documentation or “job securing” fees
Some provinces have additional protections that strictly ban all worker-paid recruitment costs.
5. What Happens If an Employer Charges LMIA Fees?
Employers found charging workers LMIA fees may face:
• Administrative monetary penalties
• LMIA refusals or revocations
• Temporary or permanent bans from hiring foreign workers
• Public listing on Canada’s non-compliant employer registry
Workers may also face complications if authorities discover fee payments during inspections.
6. What Should Workers Do If Asked to Pay LMIA Fees?
If you are asked to pay LMIA-related fees:
1 Do not make any payment
2 Request clarification in writing
3 Keep records of communications
4 Verify the job offer and employer legitimacy
5 Seek advice from official or trusted verification services
Paying illegal fees does not guarantee approval and may put your immigration status at risk.
7. Common LMIA Fee Scams to Watch For
• “Refundable LMIA fee” requests
• Claims that payment speeds up approval
• Requests to pay through agents or third parties
• Demands for cash payments before contract issuance
These are common indicators of fraud.
Key Takeaway
Employers cannot legally charge foreign workers LMIA fees under Canada’s TFWP.?All LMIA-related costs must be paid by the employer.?Any request for payment is a red flag and should be treated with caution.
Disclaimer
This article is for informational purposes only and does not constitute legal advice.?Rules may vary by province and program stream. Always consult official Canadian immigration authorities for confirmation.
December 17, 2025
