If a Temporary Foreign Worker (TFW) on a closed LMIA work permit resigns or “ghosts” you immediately upon arriving in Canada, you cannot force them to work or deport them. You must immediately notify Service Canada and IRCC to protect your corporate compliance record, and you may consult an employment lawyer to pursue civil remedies for breach of contract.
Securing a Labour Market Impact Assessment (LMIA) is an exhausting and expensive process. 👥 Employers in provinces like Alberta, Ontario, and Nova Scotia often spend thousands of dollars on recruitment agencies, government fees, and legal counsel to bring critical talent to Canada. It is incredibly frustrating when an employer finally gets the worker to Canada, only for the worker to resign on their first day, or worse, completely disappear without a trace.
This “ghosting” scenario happens more often than employers realize. Some foreign nationals use the LMIA system merely to gain physical entry into Canada, with secret plans to immediately seek work elsewhere or claim asylum. As a Canadian employer, your first instinct might be to cancel their visa or demand your money back. However, Canadian labour law protects foreign workers from forced labour, meaning you cannot physically make them stay. Your primary focus must immediately shift from retaining the worker to protecting your company from severe government compliance penalties.
Step-by-Step Process to Handle an LMIA Worker Resignation
Failing to report a missing or resigned Temporary Foreign Worker can trigger an unannounced inspection from Service Canada. 📈 To maintain your ability to hire foreign workers in the future, follow this strict legal and administrative process.
Step 1: Document the Resignation or Absence
If the worker explicitly resigns, demand it in writing. If they simply ghost you, carefully document all your attempts to contact them via email, phone, and text message. Wait a reasonable amount of time (usually 3 to 5 consecutive missed shifts) before officially classifying it as job abandonment. This paper trail is your primary defence during an employer compliance audit.
Step 2: Notify Service Canada (ESDC) Immediately
You have a legal obligation under the Temporary Foreign Worker Program (TFWP) to inform Employment and Social Development Canada (ESDC) of any material changes to the LMIA conditions. 📝 You must contact Service Canada immediately to inform them that the worker has resigned or abandoned their position. This officially closes your responsibility for the worker’s wages and working conditions.
Step 3: Inform IRCC via Webform
In addition to Service Canada, you should notify Immigration, Refugees and Citizenship Canada (IRCC). Use the IRCC Webform to upload a letter explaining that the individual is no longer employed by your company. This ensures that IRCC knows the worker is no longer complying with the conditions of their closed work permit.
Step 4: Cancel Health Coverage and Benefits
If you set up private health insurance for the worker upon arrival (as is required for some LMIA streams before provincial coverage kicks in), or registered them for provincial workers’ compensation boards (like WSIB in Ontario or WorkSafeBC), you must immediately notify these agencies to terminate the coverage and stop your premium payments. 💰
Step 5: Consult an Employment Law Firm
While you cannot deport the worker, you do have civil rights. An employment lawyer can review the employment contract you signed with the worker. If the contract included a “liquidated damages” clause or if you suffered severe financial losses due to the sudden breach of contract, you may be able to sue the worker in a provincial small claims court, though collecting the money is often difficult.
How Much Does it Cost in Canada?
Losing an LMIA worker on day one represents a massive sunk cost. Here is a breakdown of the typical financial losses and potential legal fees in CAD:
| Expense / Legal Action | Estimated Cost (CAD) | Details |
|---|---|---|
| Lost LMIA Government Fee | $1,000 | This fee is strictly non-refundable, even if the worker resigns on the very first day. |
| Lost Recruitment & Airfare | $2,000 – $8,000+ | Money spent on flights and agency fees cannot be legally deducted from the worker’s pay. |
| Lawyer Consultation | $300 – $600 | Meeting with a law firm to properly report the breach and assess civil litigation options. |
| Civil Lawsuit (Breach of Contract) | $3,000 – $10,000+ | Suing the worker for damages, though recovering funds is rare if they have no assets. |
How Long Does the Process Take?
You must act fast. 🕐 It is recommended to notify Service Canada and IRCC within a few days of confirming job abandonment. If you need to replace the worker, unfortunately, you are sent right back to the starting line. You cannot transfer the old LMIA to a new person; you must advertise the position again for 4 weeks and wait another 2 to 4 months for a brand new LMIA to be processed by Service Canada.
Frequently Asked Questions (FAQ)
Can I legally deport the worker for quitting?
No. Employers have no authority to cancel visas or deport individuals. Only the Canada Border Services Agency (CBSA) can remove someone from Canada. However, by notifying IRCC, the worker may face enforcement action if they work illegally.
Can the worker immediately start a job with someone else?
Legally, no. An LMIA work permit is a “closed” permit. The worker is legally prohibited from working for any other employer in Canada until a new employer secures a new LMIA and the worker is approved for a new work permit.
Can I deduct the $1,000 LMIA fee from their final pay?
Absolutely not. Under the Temporary Foreign Worker Program rules, it is strictly illegal to force the worker to pay the LMIA fee, either directly or through payroll deductions. Doing so will result in massive fines for your company.
Will Service Canada ban me from hiring again?
If the worker quit on their own accord and you promptly reported it, you will generally not be penalized. You are only banned or fined if an audit reveals you abused the worker, failed to pay them as promised, or failed to report their departure.
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