LMIA Rejected: What to Do Next?

If your business applied for an LMIA and it was rejected, don’t panic. It won’t help. There are a few steps to figure out your next move.

What to do next and when depends on the reasons for the refusal and how urgently your business needs to fill the position.

There are six of the most common reasons for LMIA refusals:

1. Lack of Active Business Engagement: The employer is not actively operating their business.
2. No Genuine Employment Need: There isn't a legitimate requirement for a foreign worker to fill the position.
3. Inability to Meet Job Offer Terms: The employer is unable to fulfill the conditions of the job offer.
4. Outstanding Compliance Issues: The employer has unresolved compliance problems.
5. Substandard Working Conditions: The offered working conditions for the foreign national do not align with Canadian standards.
6. Insufficient Efforts to Hire Canadians/Permanent Residents: The employer has not made reasonable attempts to hire or train Canadian citizens or permanent residents.

If an LMIA Refusal Letter is too vague and unclear, request the notes through ATIP to understand the grounds. This will help in preparing a stronger application for reapplying for the LMIA.

If it becomes evident through an LMIA process or an LMIA Refusal Letter that the issue is a poorly prepared application due to insufficient documents, lack of information, or an incorrect strategy altogether, the entire approach needs to be reassessed to develop the correct plan.

Very often, we see employers making mistakes that could be reversed with the proper guidance. These include a lack of explanation regarding business activities and why there is a need to fill a particular role in line with the business operations.

Common errors also involve the wrong selection of the NOC code that matches the job description, which results in not meeting other LMIA requirements, such as choosing the wrong stream, improper advertising, and inadequate recruitment efforts.

Furthermore, there is often a failure to clearly understand the options to prove financial capacity through attestation when business financial documents are insufficient.

In cases where an officer's mistake occurs, a decision could be appealed at the Federal Court, provided there are justified grounds.

As soon as your LMIA application is refused, consult an immigration lawyer to navigate the various unique scenarios involved. To prepare effectively for the meeting, have the following documents: 

• LMIA Decision (refusal letter)
• LMIA Summary (which can be uploaded from the LMIA Online Portal and contains all the information about the business and job description submitted with the application)
• Supporting documents submitted, especially if this was a concern
• Notes, if obtained (most of the time, this would not be necessary)

The good news is there is no limit on the number and timing of LMIA applications, except when the employer has been found non-compliant and is serving a ban.

It is, however, absolutely essential to understand whether to reapply immediately due to correctable mistakes or if more preparation is needed to address the concerns.

For example, if the stream was wrongly selected or the job advertisement did not meet the requirements, this could be corrected with the lawyer’s advice, review of the job post, and re-advertising. Although it will take time, it can be properly planned and initiated without further delay.

In other cases, longer-term planning would be necessary, involving a clear action plan. For instance, improving the financial position of the business, obtaining additional documents, cap reduction, etc.