New LMIA Regulations in Canada Aim to Prevent Fraud

As of September 2025, a new federal rule mandates the use of the Job Bank’s Direct Apply feature for all Labour Market Impact Assessment (LMIA) job advertisements under the Temporary Foreign Worker Program (TFWP).

This policy aims to promote fairness, transparency, and efficiency in the hiring process by ensuring that Canadian employers actively engage with domestic job seekers before turning to foreign workers.

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Key Highlights of the New Rule

Mandatory Use of Direct Apply

Employers are now required to enable the Direct Apply function in all Job Bank postings related to LMIA applications. This feature allows job seekers authorized to work in Canada to submit their resumes directly through Job Bank.

Resume Review Within 21 Days

Employers must review each submitted resume within 21 days. Failure to do so may result in:

• Job ad removal from Job Bank
• Delays or denials in LMIA processing
• Disruption to business operations

Multiple Application Methods Required

While Direct Apply is mandatory, employers must also offer at least one alternative application method, such as email, in-person, or a website form.

Why the Change?

Previously, some employers posted jobs without seriously engaging with applicants, raising concerns about token recruitment efforts. This update ensures:

• Genuine efforts to hire Canadian residents
• Greater accountability in the LMIA process
• Increased access to opportunities for underrepresented groups

Who’s Affected?

The new rule applies to most LMIA streams, with minor differences depending on:

• Wage level (high-wage vs. low-wage positions)
• Industry sectors

For low-wage positions, employers must also complete three recruitment activities, including:

• A Job Bank ad with Direct Apply
• Two methods targeting underrepresented groups

Example Scenario

A restaurant owner in Toronto hiring line cooks must:

1. Post the job on Job Bank with Direct Apply enabled
2. Provide at least one other way to apply
3. Review resumes within 21 days
4. Document all recruitment efforts for LMIA submission

Ignoring a qualified Canadian applicant could lead to an audit or LMIA denial.

Step-by-Step: How to Use Direct Apply

For New Job Postings

1. Log in to your employer account on Job Bank
2. Click “Create a new job posting”
3. Fill out employer and job details
4. In Step 6 (“How to Apply”), make sure Direct Apply is checked, and add one more method
5. Preview and submit your ad

For Existing Postings

1. Log in and go to “Job postings”
2. Select the ad, click “Edit”
3. In Step 6, enable Direct Apply (if not already selected)
4. Add a second application method
5. Preview and submit updates

Managing Applications via Direct Apply

1. Access “Applicants and Matches” in your Job Bank dashboard
2. View, preview, or download resumes
3. Track and document actions taken on each resume
4. Keep records for six years to comply with inspection requirements

Tip: Downloaded or previewed resumes notify the applicant, promoting transparency and reducing “ghosting.”

Impact on Employers

Opportunities

• Access to verified, local job seekers
• Automated tools like match scores for efficient screening
• Streamlined compliance with LMIA requirements

Challenges

• 21-day review rule increases administrative tasks
• Risk of job ad removal or LMIA denial if deadlines are missed
• Small businesses may need additional HR support

Implications for Job Seekers and TFWs

• Canadian job seekers gain more visibility and feedback
• Faster application process through Job Bank
• Temporary foreign workers (TFWs) benefit from fairer recruitment, though stricter screening may lengthen LMIA timelines

Coming Soon: End of Agriculture LMIA Exemption

The temporary suspension of advertising requirements for primary agriculture positions ends on December 31, 2025.

Starting January 1, 2026:

• Full recruitment rules resume, including Direct Apply on Job Bank
• Employers must again submit advertising proof
• Targeted recruitment of underrepresented groups is required
• All recruitment documentation must be kept for six years

This marks a return to pre-pandemic standards and encourages more domestic hiring in agriculture.

Conclusion

The new LMIA advertising rule represents a major shift in how Canadian employers must approach recruitment through the Temporary Foreign Worker Program. With Direct Apply now mandatory, and strict resume review timelines, the government is reinforcing its commitment to:

• Domestic hiring first
• Ethical and transparent recruitment
• Streamlined access to global talent when needed

As the agriculture exemption ends later this year, all employers—large or small—must be proactive, organized, and compliant.