If you need to withdraw an approved Labour Market Impact Assessment (LMIA) before the foreign worker arrives in Canada, you must immediately notify ESDC in writing. The standard $1,000 CAD processing fee is generally non-refundable unless the withdrawal happens before processing begins.
Business needs can change rapidly. Whether you are operating a tech startup in Waterloo or a logistics company in Winnipeg, economic shifts might force you to cancel an employment offer. When this job offer is tied to a Labour Market Impact Assessment (LMIA), the stakes are higher than a standard Canadian employment contract.
Withdrawing an LMIA job offer before the foreign national receives their work permit requires specific administrative steps to avoid compliance flags. ⚠ Failing to properly notify federal authorities can lead to investigations by Employment and Social Development Canada (ESDC) or the Canada Border Services Agency (CBSA). This guide covers the correct legal approach to cancelling an international hire.
The Step-by-Step Process of Cancelling an LMIA Job Offer in Canada
Properly unwinding an international job offer protects your business from future liabilities. You must communicate clearly with both the prospective employee and the relevant Canadian government departments.
Step 1: Review Employment Agreements and Liabilities
Before contacting the government, review the signed job offer or employment contract. 📄 Even though the worker has not arrived, Canadian common law or provincial statutes (like the Alberta Employment Standards Code) might dictate that the worker is owed reasonable notice or severance if they have already incurred costs to relocate.
Step 2: Notify the Foreign Worker Formally
You must inform the candidate immediately in writing that the job offer is being revoked. Clear communication prevents the worker from travelling to a Canadian port of entry. If they arrive at the border expecting a job that no longer exists, CBSA will deny them entry, and your business may be flagged for misrepresentation.
Step 3: Send a Formal Withdrawal Request to ESDC
If the LMIA is still processing or has already been approved, you must notify Service Canada / ESDC. 💻 This is done by logging into the LMIA Online Portal or contacting the specific processing centre that handled your file. You must provide the LMIA system file number, the employer’s business details, and a clear reason for the cancellation (e.g., economic downturn, company restructuring).
Step 4: Inform IRCC if a Work Permit is Pending
If the worker has already used the approved LMIA to apply for their work permit, Immigration, Refugees and Citizenship Canada (IRCC) must also be notified. The worker’s application will be refused once the LMIA is marked as cancelled, preventing any unauthorized travel to Canada.
How Much Does a Withdrawal Cost?
The financial losses associated with withdrawing an LMIA primarily revolve around sunken government fees and potential legal disputes. 💰
- Government Processing Fees: The $1,000 CAD LMIA application fee per position is strictly non-refundable once ESDC has started assessing the file. If you withdraw the day after submitting, you lose the fee.
- Recruitment Costs: Employers typically spend hundreds or thousands of dollars on mandatory Canadian advertising (Job Bank, local newspapers) which cannot be recouped.
- Severance Liabilities: If the candidate sues for breach of contract, defending the claim through a local law firm can cost several thousand dollars in legal fees.
| Before ESDC Processing Begins | Full $1,000 CAD fee may be refunded |
| During Processing or After Approval | No refund provided by ESDC |
| After Worker Receives Work Permit | No refund; potential employer compliance audit risk |
How Long Does the Cancellation Process Take?
Notifying ESDC through the online portal is instant, but processing the formal cancellation in their internal systems usually takes 3 to 5 business days. ⌛ It is critical to keep a copy of your withdrawal confirmation email as proof that you acted proactively.
Frequently Asked Questions (FAQ)
Will cancelling an LMIA hurt my chances of getting one in the future?
Generally, withdrawing an application for legitimate business reasons (such as financial hardship or corporate restructuring) will not negatively impact future LMIA applications, provided you were transparent and followed the correct notification procedures.
What if the foreign worker has already booked their flight to Canada?
You must inform them not to board the flight. If they arrive at a Canadian airport and present a cancelled LMIA to a CBSA officer, they will be denied entry and may face a temporary exclusion order. Clear communication is the employer’s responsibility.
Can I transfer the approved LMIA to a different foreign worker instead of cancelling it?
No. Standard LMIAs are issued for a specific foreign national. If the original candidate cannot take the job, you cannot simply swap names. You must withdraw the application and submit a new one with the new candidate’s details.
Do I need a lawyer to cancel an LMIA?
While not legally required to simply notify ESDC, consulting with a Canadian employment law firm is highly recommended if the candidate has already signed a contract, to ensure you are not exposed to wrongful dismissal or breach of contract lawsuits.
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