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Canada Implements New LMIA Changes for Fraud Prevention

Canada Implements New LMIA Changes for Fraud Prevention

An additional rule requiring that Canada advertise its Labour Market Impact Assessment (LMIA) using the Job Bank Direct Apply feature has been formally implemented.

Such reform, designed to improve the process of hiring in regard to transparency, efficiency, and fairness through the temporary foreign worker program (TFWPs), also places on the employer the mandatory role of screening submitted resumes within a time-bound protocol.

A lack of compliance may lead to job adverts being posted and may slow down LMIA applications and business.

By September of 2025, this regulation will highlight the priority of the Canadian government to focus on domestic talent whilst simplifying the process of employers accessing global talent when required.

This article exposes the complexity of the new LMIA advertising rule, its implications, step-by-step guides to compatibility and other developments associated with this rule, such as the looming lift of the temporary advertisement requirements on primary agriculture jobs.

Need to know about the Temporary Foreign Worker Program (TFWP) as an employer, need to know what is available in Canada as a job applicant, or just want to know about immigration trends, this is the one-stop guide you need.

Full Details On New LMIA Advertising Rule

The core of the new rule is that employers use the Job Bank Direct Apply feature on their job advertisements concerning LMIA.

This is no longer optional but a part and parcel of showing good recruitment effort.

Direct Apply permits registered job applicants–who must be qualified to work in Canada–to post their resumes directly on the Job Bank platform to specific postings.

Why this change? The government focuses on increasing transparency and efficiency.

Previously, the job posters could put adverts on Job Bank without necessarily interacting with the job seekers and this has raised concerns that some of the advertisements were just formalities to justify the hiring of TFWs.

Today, with the Direct Apply requirement, ESDC can be sure that employers access and are sensitive to domestic applications to decrease the perceived discrimination against foreign workers.

Key elements of the rule include:

Default Enablement: Direct Apply has been enabled on all new job postings on Job Bank. Employers may also turn it off, but doing so (or not considering applications as received via it) may be considered not to be meeting recruitment requirements, which is likely to result in LMIA refusal.

Timeline Review: Within 21 days of receiving a resume through Direct Apply, employers are required to review those resumes. Otherwise, the job advert may be shut down or taken off Job Bank, stopping any further applications and making the LMIA process more difficult.

Several Application Methods: Although Direct Apply is obligatory, it cannot be the only application option. Employers need to offer more than one alternative, including email, Web sites, or on-paper submissions, to support a broader range of job applicants.

The rule is applicable to most streams of LMIA with a few changes to positions with high wages or to certain sectors.

Employers with low-paying jobs are still required to perform at least three separate recruitment events, such as Job Bank, and reach out to underrepresented groups in at least two ways.

We shall use a hypothetical situation as an example. Suppose a Toronto restaurant owner has to get line cooks.

They could advertise through Job bank, a local newspaper and a food industry web site using the old system.

At this point, they will have to turn on Direct Apply on the Job Bank, screen any resumes in 21 days, and record that they did so when submitting their LMIA application.

When a qualified Canadian applies through Direct Apply and is not given a chance, the employer may face audit results of inadequate domestic hiring.

Step-by-Step Guide For Implementing Direct Apply

It does not mean that compliance is not intimidating. The following is a step-by-step guide on how to add Direct Apply to the posting following official Job Bank guidelines on creating new or updating postings.

How to make a New Job Posting and directly apply.

Sign In to Job Bank as an employer: Sign into your account through the official site (jobbank.gc.ca). Newcomers: please use your business number and address.

Go to Job postings: On the dashboard, under job postings, choose the option of creating a new job posting.

Full Preliminaries: Complete Step 1 (Employer details), Step 2 (Job title), Step 3 (Target audience–Is it targeting underrepresented groups?), Step 4 (Job details, such as duties, location, and wage) and Step 5 (Requirements, such as education and experience).

Step 6: Application Instructions By Direct Apply is already selected. Make sure that you check at least one other option (e.g., “By email” or “Through website). It is a very important step–Direct Apply will not work.

Preview and Submit: Check the posting, and submit. Ad will be activated and Direct Apply will begin accepting resumes.

Adding Direct Apply to Existing Postings

Log In and View Dashboard: Click on the left menu Job postings.

Edit the Posting: Find the ad of interest and then, in the upper left corner, you need to click the word edit.

Go to Step 6: Select the box of By Direct Apply (unless it has been checked). Add or validate another mode of application.

Submit Changes: preview and submit to make updates to the posting.

The following measures make your ad comply with the new regulation. Keep in mind that the postings should last at least four weeks and that you should invite two-star or more rated candidates within the first 30 days of low-wage jobs with Job Match.

Viewing and Managing Resumes Through Direct Apply

After applications begin to roll in, effective management will be important to prevent the 21-day review penalty.

Access Dashboard: Log in and then on the left menu, press Applicants and matches.

View Resumes: In the Resumes column, there must be a button displaying the number of submissions that were made.

Preview and Download: Under Applicant resumes preview the CV (including a match score in case the applicant used Job Bank Resume Builder) or download it. Note: Previewing or downloading informs the applicant which fosters transparency.

To support LMIA applications and possible inspections employers are expected to record reviews including why candidates were shortlisted or rejected.

On Job Bank, resumes are held in a secure location to help with record-keeping during the six-year period required.

The advantages of this system are it has centralized storage, is easy to download and it gives insights into matches which can accelerate hiring.

Nonetheless, such issues as the high number of applications in the competitive markets could need specific human resources.

Impacts on Employers: Opportunities and Challenges

Canadian businesses take a two-sided view of the new rule. On the bright side, it makes access to a pool of pre-vetted job seekers easier and may decrease the cost of recruiting them.

When using small businesses, the default enablement reduces the setup time, and the match feature would find the good fits in a short time.

But the 21-day review is an administrative burden. Employers of fast-paced industries may have a hard time responding in time, which can lead to ad takedown.

Failure to comply might result in LMIA refusals, which would delay the hiring of TFW, impacting operations – consider industries with a seasonal nature such as tourism or construction where timing is paramount.

Smaller companies having strong HR systems might be able to change without need of training or external consultants, but SMEs might require them.

On the whole, this regulation promotes ethical recruitment in line with the Canadian focus on the protection of vulnerable employees and the advancement of diversity.

Economically, the rule may increase the rate of employment among Canadians, especially among those who are underrepresented, since the rule would ensure active engagement with domestic applicants.

This targeted measure is meant to close that gap, as in 2024, Indigenous peoples and persons with disabilities had lower labor force participation rates compared to the rest of the country.

Implications for Job Seekers and Temporary Foreign Workers

To the Canadian job applicants, the regulation is a victory.

Direct Apply simplifies the application process and one can apply in seconds without going to other sites.

Refinements of resumes are done by the match score. In addition, awareness that employers are required to respond within 21 days alleviates frustrations related to ghosting.

This is beneficial to TFWs indirectly because by having a stronger domestic recruitment, the issuance of LMIAs will only be when necessary, which may result in more sustainable jobs.

But tougher regulations may introduce delays in processing, which will influence visa schedules.

This may affect migration patterns at the international level. Potential immigrants may want to focus on creating their profile on the Job bank, particularly in the Express Entry pools, where employers covered by LMIA still have value despite new modifications.

The Ending of the Temporary Suspension for Primary Agriculture Positions

In a similar progression, the temporary waivers of the minimum advertising requirements to primary agriculture LMIA applications will expire on December 31, 2025.

This suspension was introduced in January 2022 to deal with acute labor shortages during the pandemic and allow employers in farming and livestock and related industries (NOC codes such as 82030 of agricultural service contractors) to forego submitting ad proofs with applications.

Advertising will resume (with Job Bank postings and Direct Apply) starting January 1, 2026.

Even when the suspension is in place, employers need to keep hiring domestically, targeting underrepresented populations, and keep documentation to help with inspections.

It is a convenient change, since the agricultural sector in Canada is currently experiencing various challenges such as climate change and disruptions in the supply chain.

The farms that will be dependent on TFWs (e.g. seasonal workers to harvest) will be forced to increase domestic outreach, which may become costly, but will lead to the creation of local jobs.

To illustrate, a grower of fruit in British Columbia could now advertise with Job Bank, local community boards, and Indigenous networks, using Direct Apply to receive resumes of vulnerable youth.

As the economy of Canada currently experiences systemic labor shortages due to the lack of workers in such areas as agriculture, healthcare, and technology, these changes are set to transform the way organizations hire.

The new LMIA advertising regulation, which has already come into action, is an important step towards a fairer and more productive labor market.

Canada can strengthen commitment to domestic workers and ensure access to talent in the global market through Job Bank Direct Apply and regular reviews.

With the farming suspension being lifted in December 2025, employers in all industries will have to be proactive.

This is not only a regulatory evolution but an opportunity to grow businesses with diverse and strong teams.

Keep updated, work hard and do your part to make Canada a great place to live.

Shubham
Author: Shubham

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