Canadian employers who hire foreign workers on work permits face an increased likelihood of being audited by immigration authorities. The risk of an inspection grows with every new work permit issued to an employee. It is essential for businesses to be prepared for the specific requirements of an immigration audit to avoid penalties.
Compliance reviews often focus on whether an employer has followed the terms set out in an initial work permit application. These audits ensure that the conditions under which an employee was hired are being maintained throughout their employment in Canada.
How the audit process begins
When an employer brings an employee to Canada on a Labour Market Impact Assessment (LMIA) exempt work permit, they must submit an offer of employment through the government’s online Employer Portal. In this application, the employer indicates the specific conditions of the job.
This includes the salary, company benefits, and the duties the employee will perform under a specific National Occupational Classification (NOC) code. The application also lists the physical location where the employee will work. Immigration authorities use this recorded information as the baseline for their inspection.
What documents are required during an audit
An immigration audit has very specific requirements and usually focuses on a set period of time, such as a four-month window. During an inspection, the government mandates that the employer provide documentary evidence to prove they are abiding by the terms of the offer of employment.
Employers must provide payroll documents to prove the employee is being paid the amount indicated in the original application. Authorities also request human resources documents to verify benefits and confirmation that the employee is performing the actual duties described. This prevents situations where a worker is brought in for one role but is actually working in a different capacity.
Why legal support matters during an inspection
The employer is typically given a set number of days to provide all requested information. While gathering documents is one part of the process, the more challenging task is reviewing payroll and duty information to ensure total conformity with the original conditions.
It is common for an employer to find they have accidentally neglected a specific requirement. For example, an employee’s salary might vary slightly from the exact amount written into the offer of employment. In these cases, a legal response is required to argue that such a variance is not significant enough to warrant a penalty. Successfully navigating an audit allows a company to continue its operations without facing fines or other immigration penalties.
Summary of employer obligations
If a company is selected for an audit, whether randomly or otherwise, they must be ready to justify their hiring practices with clear documentation. Ensuring that internal records align with the information submitted to the Employer Portal is the most effective way to pass an inspection.
