by Cristina Zohil-Morton
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by Cristina Zohil-Morton
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Employer Compliance Obligations Under IRCC And ESDC
Employer compliance under IRCC and ESDC has become one of the most heavily enforced areas of Canadian immigration. In 2026, employers hiring foreign workers face increased scrutiny, expanded audit powers, and stricter penalties for non-compliance. Many organizations underestimate how closely IRCC and ESDC review employer conduct, even years after a work permit is issued.
Understanding employer compliance under IRCC and ESDC is critical for businesses relying on foreign talent, particularly those using LMIA-based or LMIA-exempt work permits.
What Employer Compliance Means In Canadian Immigration
Employer compliance refers to an employer’s obligation to meet all conditions set out in the Immigration and Refugee Protection Regulations (IRPR) when hiring foreign workers. These obligations apply to both LMIA-based and LMIA-exempt work permits.
IRCC and ESDC expect employers to maintain accurate records, follow wage and job duty commitments, and comply with federal and provincial employment laws.
If your organization is unsure whether it is meeting its compliance obligations, you should contact us before issues arise.
IRCC And ESDC Roles Explained
Employer compliance under IRCC and ESDC involves two different government bodies:
- IRCC oversees immigration compliance, work permit conditions, and LMIA-exempt employer obligations.
- ESDC oversees LMIA compliance, including recruitment efforts, wages, and labour market impact.
Employers are often audited by one department and later reviewed by the other, making consistency and documentation essential.
Common Employer Compliance Obligations
Employers must meet several ongoing obligations, including:
- Paying the wage offered in the work permit or LMIA
- Providing the same job duties and work location
- Maintaining records for at least six years
- Complying with federal and provincial employment laws
- Notifying IRCC of material changes
Even minor deviations can trigger findings of non-compliance during an audit.
IRCC Employer Compliance Audits
IRCC conducts employer compliance audits both randomly and in response to red flags. Audits may occur during or after the validity of a work permit, sometimes years later.
Audits typically request payroll records, job descriptions, contracts, and proof that conditions were met throughout the employment period.
Official IRCC guidance on employer compliance can be found here: Employer Non-Compliance
Consequences Of Non-Compliance
Findings of non-compliance can have serious consequences, including:
- Administrative monetary penalties
- Bans from hiring foreign workers
- Public listing on the IRCC non-compliance website
- Revocation of LMIAs or work permits
Non-compliance can also impact current and future foreign workers employed by the organization.
Employer Compliance And Corporate Immigration Strategy
For organizations using foreign talent as part of long-term workforce planning, employer compliance under IRCC and ESDC should be integrated into corporate immigration strategy.
This includes proactive audits, internal compliance reviews, and alignment between HR, payroll, and immigration teams.
Corporate clients working with global mobility partners, such as MAC Furnished Residences Inc. or MAC Real Estate Services Inc., benefit from coordinated planning that supports both immigration and relocation.
How Employers Can Reduce Compliance Risk
Employers can reduce risk by:
- Conducting internal compliance audits
- Training HR teams on immigration obligations
- Maintaining centralized documentation
- Seeking legal advice before changes occur
Proactive compliance is significantly less costly than responding to an audit after the fact.
At Zohil-Morton Law, we advise employers on compliance reviews, audit preparedness, and long-term corporate immigration planning.
Still have questions? Book a consultation today with Cristina Zohil-Morton and the team at Zohil-Morton Law.
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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.
Frequently Asked Questions About Employer Compliance Under IRCC And ESDC
How long must employers keep IRCC and ESDC compliance records?
Employers must generally retain records for at least six years.
Can IRCC audit employers after a work permit expires?
Yes. Audits may occur during or after the validity of a work permit.
Do LMIA-exempt employers have compliance obligations?
Yes. LMIA-exempt employers are still subject to IRCC compliance requirements.
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