A Labour Market Impact Assessment (LMIA) refusal can derail an employer’s hiring plans and a foreign worker’s path to Canada. But a refusal is not necessarily the end of the road. This guide covers your options after an LMIA refusal — from reconsideration requests to Federal Court review and LMIA-exempt work permit categories.
Why LMIAs Get Refused
Employment and Social Development Canada (ESDC) refuses LMIAs for a variety of reasons. Common grounds include insufficient recruitment efforts to hire Canadians or permanent residents, wages or working conditions that do not meet prevailing standards, concerns about the genuineness of the job offer, business legitimacy issues, and failure to meet the requirements for the specific LMIA stream (high-wage, low-wage, Global Talent Stream, etc.).
Option 1: Request for Reconsideration
After receiving a refusal, the employer can submit a request for reconsideration to ESDC. This is not a formal appeal — it is a request for the same office to review its decision in light of additional information or arguments. To succeed, you generally need to show that the officer made an error of fact, misunderstood the evidence, or that new information addresses the concerns raised in the refusal. Reconsideration requests should be submitted promptly and must directly address each ground of refusal.
Option 2: Federal Court Judicial Review
LMIA decisions can be challenged through judicial review at the Federal Court of Canada. The standard of review is reasonableness, meaning the Court will assess whether the officer’s decision was transparent, intelligible, and justified. Judicial review must be filed within 15 days of receiving the refusal if the employer is in Canada, or 30 days if outside Canada. This is a strict deadline. Common grounds for judicial review include failure to consider relevant evidence, procedural unfairness, applying the wrong legal test, and unreasonable interpretation of recruitment requirements.
Option 3: Re-Application
In many cases, the most practical option is to submit a new LMIA application that addresses the deficiencies identified in the refusal. This may involve conducting additional recruitment, adjusting the wage offer, providing more detailed business documentation, or choosing a different LMIA stream. A well-prepared re-application that anticipates and addresses the previous refusal reasons has a strong chance of success.
Option 4: LMIA-Exempt Work Permits
Depending on the situation, the foreign worker may qualify for an LMIA-exempt work permit category, eliminating the need for an LMIA altogether. Key LMIA-exempt categories include Intra-Company Transferees (ICT) under international agreements, C11 significant benefit work permits for entrepreneurs and owner-operators, CUSMA (formerly NAFTA) professional work permits for qualifying occupations, Francophone Mobility (C16) for French-speaking workers outside Quebec, and International Experience Canada (IEC) for eligible youth.
Strategic Considerations
The best path forward depends on the specific reasons for refusal, the urgency of the hire, and the foreign worker’s profile. In some cases, pursuing reconsideration while simultaneously preparing a new application or exploring LMIA-exempt options is the most efficient strategy.
If your LMIA has been refused, contact BridgePoint Law to discuss your options. We help employers navigate LMIA refusals and find the fastest path to bringing their workers to Canada.
