Yes, Canadian employers hiring foreign workers under LMIA-exempt Free Trade Agreements must pay a $230 CAD employer compliance fee. This fee must be paid online through the IRCC Employer Portal before the foreign worker submits their work permit application.
Navigating Canadian corporate immigration can be tricky, especially when deciphering which government fees apply to which pathways. 🏲 When a Canadian business hires a foreign national using a Free Trade Agreement (such as CUSMA, CETA, or the Canada-Colombia FTA), they are utilizing the International Mobility Program (IMP). The primary advantage of the IMP is that it exempts the employer from the arduous and expensive Labour Market Impact Assessment (LMIA) process.
However, bypassing the LMIA does not mean the employer is completely free of federal oversight. To ensure that Canadian companies are treating foreign workers fairly and adhering to labour laws, Immigration, Refugees and Citizenship Canada (IRCC) introduced a mandatory employer compliance regime. Central to this system is the employer compliance fee, a critical step that must be completed accurately to prevent the worker’s application from being rejected.
Step-by-Step Process for Employers in Canada
The rules surrounding the employer compliance fee are strictly enforced by IRCC, alongside potential inspections by Service Canada. 📋 Regardless of whether your business is headquartered in Manitoba, Nova Scotia, or Quebec, this federal procedure must be followed precisely.
Step 1: Creating an IRCC Employer Portal Account
Before an employer can pay the fee, they need access to the federal government’s secure online system. The business representative must create a GCKey and enroll in the IRCC Employer Portal. If this is the company’s first time hiring a foreign worker under the IMP, they will need to provide their Canada Revenue Agency (CRA) business number and basic corporate information to establish the primary account.
Step 2: Drafting the Offer of Employment
Once logged into the portal, the employer must submit a detailed electronic Offer of Employment. 💼 This is not just a standard job letter; it is a legally binding federal declaration. The employer must outline the job title, the specific National Occupational Classification (NOC) code, the expected duties, and the exact wage. The wage must align with the prevailing wage for that specific municipality, ensuring the foreign worker is compensated fairly according to Canadian standards.
Step 3: Paying the Employer Compliance Fee
Before the Offer of Employment can be officially submitted into the federal system, the portal will prompt the employer for payment. The employer must pay the $230 compliance fee online using a corporate credit card or debit card. It is critically important to keep the digital receipt, as this payment triggers the final processing of the employment offer.
Step 4: Transmitting the A-Number to the Employee
Immediately after the $230 fee is paid and the offer is submitted, the Employer Portal generates a unique 7-digit alphanumeric code known as the Offer of Employment ID (often called the A-number). 🔎 The Canadian employer must provide this exact A-number to the prospective foreign worker. The worker cannot complete their work permit application (Form IMM 1295 or IMM 5710) without entering this specific code into their application.
How Much Does the Total Process Cost?
While hiring through an LMIA-exempt pathway saves the company the $1,000 LMIA processing fee, there are still federal fees involved. 💰 These amounts are set by the Canadian government in CAD.
| Fee Description | Amount (CAD) | Who is Legally Responsible? |
|---|---|---|
| Employer Compliance Fee | $230 | The Canadian Employer (Strictly) |
| Work Permit Application Fee | $155 | The Employee (or paid by employer) |
| Biometrics Collection Fee | $85 | The Employee (or paid by employer) |
| Open Work Permit Holder Fee (Spouses) | $100 | The Employee’s Spouse |
It is legally prohibited under the Immigration and Refugee Protection Regulations (IRPR) for an employer to ask the foreign worker to reimburse the $230 compliance fee. Deducting this from their paycheque is considered a severe violation of Canadian labour standards.
What are the Consequences of Non-Compliance?
Canadian authorities take the IMP rules very seriously. ⚠️ After the work permit is issued, the employer may be subjected to an unannounced compliance inspection by federal investigators. If an employer is found to have provided false information, failed to pay the correct wage, or illegally charged the worker the compliance fee, the penalties are severe. Fines can range from $500 to $100,000 per violation, and the company may be permanently banned from hiring foreign workers in the future.
Frequently Asked Questions (FAQ)
Is the $230 compliance fee refundable if the work permit is refused?
Yes. If the foreign worker’s permit application is officially refused by IRCC, or if the employer withdraws the offer of employment before the work permit is issued, the $230 employer compliance fee is automatically refunded to the credit card used for payment.
Can an immigration lawyer pay this fee for us?
Yes. A licensed Canadian lawyer or registered consultant who is set up as an authorized representative on the employer’s portal account can facilitate the submission and pay the fee on behalf of the company.
Are any employers exempt from paying the compliance fee?
Yes, but exceptions are extremely rare. They generally only apply to certain religious organizations, charitable groups, or research chairs. Corporate employers utilizing Free Trade Agreements for standard B2B transfers or professional hires are never exempt.
What happens if I submit the application without the A-number?
If the foreign worker attempts to submit their work permit application without the specific Offer of Employment ID (A-number) generated after the compliance fee is paid, IRCC will refuse the application outright or return it as incomplete.
Do we have to pay this fee again for a work permit extension?
Yes. Every time you submit a new offer of employment to either extend a current worker’s stay or hire a new LMIA-exempt worker, the Canadian employer must log into the portal, create a new offer, and pay the $230 compliance fee again.
How long does it take for the A-number to be generated?
Once the portal forms are completed and the $230 credit card payment goes through successfully, the system generates the Offer of Employment ID immediately. You can then instantly email this code to your prospective employee.
Does paying this fee guarantee the work permit will be approved?
No. Paying the employer compliance fee only satisfies the employer’s requirement. The foreign worker must still prove to an IRCC officer that they meet the educational, professional, and security requirements of the specific Free Trade Agreement.
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