Work Permit Verification: Canadian Employer Compliance

Every employer in Canada that hires a foreign national on a work permit has legal obligations to verify the worker's authorisation and comply with the conditions of employment. Failing to meet these obligations can result in administrative monetary penalties of up to $1 million per violation, a ban from the Temporary Foreign Worker Program (TFWP), and publication on the Government of Canada's non-compliant employer list. This guide sets out the current legal framework, the employer's verification obligations, record-keeping requirements, and practical answers to the questions Canadian employers ask most frequently.

This article is for informational purposes only and does not constitute legal, financial, or regulatory advice. Regulatory references are accurate as of the publication date. Consult a qualified professional for guidance specific to your situation.

This article is for HR professionals, compliance officers, and business owners responsible for hiring and onboarding. It is informational only and does not constitute legal or immigration advice.

What is work authorisation verification and why is it required?

Work authorisation verification is the process of confirming that a prospective or current employee is lawfully entitled to work in Canada. For Canadian citizens and permanent residents, the right to work is inherent. For foreign nationals, the right to work is conditional on holding a valid work permit or being exempt from the work permit requirement.

The legal basis is the Immigration and Refugee Protection Act (IRPA) and the Immigration and Refugee Protection Regulations (IRPR), which establish that no foreign national may work in Canada without authorisation. Employers who employ a foreign national in a capacity or for a duration other than that authorised by the work permit are in violation of IRPA, Section 124.

Under the Temporary Foreign Worker Program and the International Mobility Program (IMP), employers have specific compliance obligations enforced by Immigration, Refugees and Citizenship Canada (IRCC) and Employment and Social Development Canada (ESDC) through the employer compliance regime.

Employers must ensure they do not discriminate based on citizenship, place of origin, or ethnic origin when applying verification procedures. The Canadian Human Rights Act and provincial human rights legislation prohibit discrimination in employment on these grounds.

Categories of work authorisation in Canada

Understanding the categories of work authorisation is essential for determining which verification steps apply.

Canadian citizens and permanent residents

Canadian citizens and permanent residents have an unrestricted right to work in Canada. Employers are not legally required to verify citizenship or permanent resident status in the same way they must verify work permits for foreign nationals. However, for positions requiring security clearances or for compliance with specific programme requirements, employers may request proof of status.

Work permit holders (employer-specific)

An employer-specific work permit — often obtained through a Labour Market Impact Assessment (LMIA) — authorises the foreign national to work for a specific employer, in a specific occupation, and at a specific location. The employer must verify:

• The work permit is valid and has not expired
• The employer name on the work permit matches the hiring employer
• The occupation and location match the terms of the work permit
• Any conditions on the work permit are being met

Open work permits

An open work permit authorises the foreign national to work for any employer in Canada, in any occupation, subject to limited exceptions (e.g., businesses listed as non-compliant). Open work permits are issued to spouses of skilled workers, certain International Experience Canada participants, and Post-Graduation Work Permit (PGWP) holders, among others.

Work permit-exempt categories

Certain categories of foreign nationals are authorised to work without a work permit under the IRPR, including business visitors, foreign representatives, and certain emergency service providers. Employers should document the exemption category relied upon.

Employer compliance obligations

The Employer Compliance Regime

IRCC and ESDC conduct employer compliance inspections for employers who hire foreign workers through the TFWP or the IMP. The compliance regime verifies that employers are meeting the conditions set out in the LMIA, the offer of employment, and the work permit.

The Employer Compliance Regime requires employers to maintain records demonstrating compliance for at least six years from the date the work permit is issued. Inspections may be triggered randomly, as a result of a complaint, or following a compliance review.

Employers must demonstrate:

• Wages, working conditions, and occupation match those specified in the LMIA or offer of employment
• The workplace is free of abuse and the foreign worker's rights are respected
• The employer has made reasonable efforts to provide a workplace free of physical, sexual, psychological, and financial abuse
• The employer is actively engaged in the same business as declared in the LMIA application

Record-keeping obligations

Records must be retained for at least six years from the date the work permit was issued, regardless of whether the employment relationship has ended. Required records include:

• A copy of the foreign national's work permit
• Evidence of wages paid (pay stubs, direct deposit records)
• Evidence of working conditions provided (housing, transportation if committed to in the LMIA)
• The LMIA or offer of employment number
• Any correspondence with IRCC or ESDC

Penalties for non-compliance

The penalty framework for employer non-compliance is significant and escalating:

Employers found non-compliant are published on the Government of Canada's list of employers who have been found non-compliant, including the business name, address, violation type, and penalty. Publication carries significant reputational consequences.

Practical verification steps for employers

Step 1: Verify the work permit

Obtain a copy of the worker's work permit and confirm:

• The permit has not expired
• The employer name matches (for employer-specific permits)
• The occupation and National Occupational Classification (NOC) code match the position offered
• The work location matches
• Any conditions are noted and can be complied with

Step 2: Verify identity

Confirm the identity of the person presenting the work permit using a government-issued photo identification document (passport, permanent resident card, or provincial driver's licence).

Step 3: Set calendar reminders for expiry

For workers with time-limited permits, set reminders at 90, 60, and 30 days before expiry to allow time for renewal applications or transition planning. An expired work permit means the worker must stop working — there is no automatic extension except where an application for renewal was submitted before expiry (implied status under IRPR Section 186(u)).

Step 4: Document and retain

Store copies of all verification documents in a secure file, accessible for potential IRCC or ESDC inspections, and retain for a minimum of six years.

Anti-discrimination requirements

Work authorisation verification must be applied consistently and without discrimination. The Canadian Human Rights Act prohibits discrimination in employment on the basis of race, national or ethnic origin, colour, and citizenship. The Employment Equity Act provides additional protections in federally regulated workplaces. Provincial human rights codes contain equivalent protections.

The practical safeguard is a written procedure that specifies:

• That verification is required for all employees identified as requiring a work permit
• Which member of staff is responsible for carrying out verification
• How records are stored and for how long
• That verification procedures are applied consistently regardless of the worker's national origin or appearance

The IRCC Hire a Temporary Foreign Worker page provides guidance for employers on their obligations and the compliance process.

Integrating work authorisation into a wider compliance framework

Work authorisation verification is one component of a broader hiring compliance process. Employers in regulated sectors — financial services, healthcare, transportation — are also subject to professional credential verification, security clearance requirements, and sector-specific background checks.

CheckFile supports compliance teams in automating document verification across identity, immigration, and employment documents, reducing processing time per file and producing a timestamped audit trail suitable for regulatory inspection. The platform integrates with HR and onboarding systems via API. See our security infrastructure for data protection standards, or review pricing options for teams of different sizes.

For organisations with KYC obligations running in parallel with employment onboarding, our KYC 2026 requirements guide covers the regulatory landscape for identity verification. Employers conducting due diligence on contractors may also find our due diligence checklist for businesses a useful reference.

For a comprehensive overview, see our document compliance complete guide. Our platform processes over 180,000 documents per month with 98.7% OCR accuracy and a 94.8% fraud detection rate, reducing manual review time by 83%.

Frequently Asked Questions

Do I need to verify work authorisation for every employee?

You must verify work authorisation for every foreign national you employ. Canadian citizens and permanent residents have an inherent right to work and are not subject to work permit verification, though you may verify identity for other compliance purposes. If you are hiring through the TFWP or IMP, the compliance regime applies and you must maintain records demonstrating the worker's authorisation.

What happens if a worker's permit expires while they are employed?

If the worker submitted a renewal application before the permit expired, they may continue working under "implied status" (IRPR Section 186(u)) until a decision is made on the renewal. If no renewal was submitted, the worker must stop working immediately. Employing a worker without valid authorisation exposes the employer to penalties under the compliance regime.

Can I rely on a Social Insurance Number (SIN) to verify work authorisation?

A SIN beginning with "9" indicates a temporary resident, but the SIN alone does not confirm work authorisation. It confirms eligibility to receive a SIN for tax purposes but does not replace verification of the work permit itself. Always verify the actual work permit.

Do I need an LMIA to hire every foreign worker?

No. The International Mobility Program (IMP) covers categories of workers who are LMIA-exempt, including intra-company transferees, CUSMA (USMCA) professionals, spouses of skilled workers with open work permits, and PGWP holders. However, employers hiring under the IMP must still submit an offer of employment through the IRCC Employer Portal and pay the employer compliance fee.

What should I do if I receive a notice of inspection from IRCC or ESDC?

Cooperate fully with the inspection. Gather all records relating to the foreign worker(s) identified in the notice, including work permits, pay records, LMIA documentation, and evidence of working conditions. You have the right to legal representation. Non-cooperation with an inspection is itself a basis for a finding of non-compliance.

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This article is informational only and does not constitute legal or immigration advice. Immigration law and employer compliance requirements are subject to change; employers should verify current requirements at canada.ca/immigration and seek specialist immigration law advice where necessary.