How Canadian Employers Can Fix Immigration Non-Compliance And Reduce Audit Risk

Employer non-compliance under Canadian immigration law does not always stem from bad faith. In many cases, employers fall out of compliance due to internal misalignment, changes in business operations, or misunderstandings of IRCC and ESDC obligations. In 2026, however, IRCC takes a strict approach to compliance failures, regardless of intent.

Understanding how to identify, fix, and prevent employer non-compliance is essential for organizations that rely on foreign talent and want to preserve their ability to hire internationally.

What Counts As Employer Non-Compliance

Employer non-compliance occurs when an employer fails to meet the conditions attached to hiring a foreign worker. These conditions apply to both LMIA-based and LMIA-exempt work permits and are enforceable long after a permit is issued.

Common compliance issues include wage discrepancies, changes to job duties, unreported work location changes, missing records, and failure to follow employment standards legislation.

How Non-Compliance Is Usually Discovered

Many employers first become aware of non-compliance issues during an IRCC or ESDC audit. Others discover issues when submitting new work permit or LMIA applications and facing increased scrutiny.

Non-compliance may also come to light through employee complaints or information sharing between government departments.

Why Fixing Non-Compliance Early Matters

Unaddressed compliance issues can compound over time. What begins as a minor discrepancy may later result in administrative monetary penalties, hiring bans, or public listing on IRCC’s non-compliance registry.

Addressing issues proactively often leads to better outcomes than responding reactively during an audit.

If your organization suspects compliance gaps, contact us before IRCC initiates a review.

Steps Employers Can Take To Fix Non-Compliance

Fixing employer non-compliance usually involves a structured approach, including:

• Conducting an internal compliance audit
• Identifying discrepancies between approved conditions and actual practices
• Correcting payroll, job duty, or documentation issues
• Updating internal HR and immigration processes
• Documenting corrective actions taken

In some cases, voluntary disclosure or corrective filings may be appropriate.

Preventing Future IRCC And ESDC Audits

While audits cannot always be avoided, employers can significantly reduce risk by implementing robust compliance systems. Preventive measures include:

• Centralized record keeping for foreign worker files
• Regular compliance training for HR and payroll teams
• Clear internal escalation processes for role changes
• Legal review before material changes occur

Employers that treat immigration compliance as an ongoing obligation rather than a one-time filing are better positioned to withstand audits.

Employer Compliance And Long-Term Workforce Planning

For organizations with ongoing foreign hiring needs, compliance should be integrated into broader workforce and global mobility strategies.

Employers working with relocation partners such as MAC Furnished Residences Inc. or MAC Real Estate Services Inc. benefit from coordinated planning that aligns immigration compliance with onboarding and relocation timelines.

How Legal Support Can Reduce Risk

Legal support plays a critical role in identifying compliance risks, responding to audits, and preventing future issues. Employers who seek advice early often avoid penalties and preserve their hiring capacity.

At Zohil-Morton Law, we assist employers with compliance audits, remediation strategies, and long-term corporate immigration planning.

Still have questions? Book a consultation today with Cristina Zohil-Morton and the team at Zohil-Morton Law.

Stay Informed

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We’re here to keep you informed and empowered on your Canadian immigration journey.

This article is for informational purposes only and does not constitute legal advice. Please consult a licensed immigration professional regarding your specific situation.

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Frequently Asked Questions

Can employers fix non-compliance before an audit?

Yes. Proactive internal reviews and corrective actions may reduce audit risk and severity.

Does fixing non-compliance guarantee no penalties?

No, but early remediation often results in better outcomes than addressing issues during an audit.

How long should employers keep immigration records?

Employers are generally required to retain records for at least six years.