Verdict: FalseLast verified 2026-05-19

Can you buy a Canadian LMIA from an employer?

Buying an LMIA is criminal fraud. ESDC issues LMIAs to employers based on labour-market evidence — they cannot be sold. Both buyer + seller face permanent bans + criminal charges.

The truth

A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) to a Canadian employer demonstrating that no qualified Canadian or PR was available to fill a specific job. The employer pays a $1,000 processing fee, advertises the role in Canada for 4+ weeks, documents the recruitment process, and submits the application. An approved LMIA enables a foreign worker to apply for a closed work permit AND adds 50-200 CRS points in Express Entry. Selling LMIAs — i.e. employers extracting payment from foreign workers in exchange for LMIA support — is illegal under the Immigration and Refugee Protection Act + the Criminal Code. Both the employer and the worker face serious consequences: 5-year ban from the Temporary Foreign Worker Program, public posting on the ESDC blacklist, criminal prosecution for misrepresentation, permanent ban on future Canadian immigration applications for the worker. IRCC + ESDC + CBSA actively investigate LMIA fraud. The 'LMIA Mill' scandal of 2023-2024 led to ~150 Canadian employers being suspended and ~3,000+ workers facing PR application refusals.

Why this rumour persists

Genuine employer-paid LMIAs (the employer pays the $1,000 ESDC fee) are common — predatory consultants and unethical employers exploit this by demanding worker reimbursement or kickbacks under the table.

What to actually do

  • If an employer or recruiter asks YOU to pay any amount for an LMIA, it's fraud — report to ESDC Tip Line (1-866-602-9448) or CBSA Border Watch Line
  • Legitimate LMIA: the employer pays the $1,000 fee, advertises the role on Job Bank + 2 other Canadian sites for 4+ weeks, demonstrates genuine recruitment
  • Verify employer compliance history on the ESDC public list — check whether they've had recent LMIA approvals or violations
  • Use an RCIC (Regulated Canadian Immigration Consultant) or immigration lawyer — not unregulated 'agents' or 'recruiters'
  • For pre-paid LMIA scams, you can apply for restoration of immigration status + report the employer — IRCC has provisions for victims of LMIA fraud

Sources

This entry is general information, not legal advice. Immigration rules change. Verify against the destination's official immigration authority before making any decision. Sources last reviewed 2026-05-19.

Spot something wrong? Email contact@visavu.com with a source URL.

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