New Canada LMIA Rules Are Now In Effect To Curb Fraud

Last Updated On 3 September 2025, 10:40 AM EDT (Toronto Time)

A new rule mandating the use of the Job Bank Direct Apply feature for Canada’s Labour Market Impact Assessment (LMIA) advertising has officially come into force.

This change, aimed at enhancing transparency, efficiency, and fairness in the hiring process via temporary foreign worker program (TFWPs), also requires employers to actively review submitted resumes within a strict timeframe.

Failure to comply could result in the removal of job advertisements, potentially delaying LMIA applications and disrupting business operations.

As of September 2025, this rule underscores the Canadian government’s commitment to prioritizing domestic talent while streamlining the pathway for employers to access global skills when needed.

This article delves deep into the intricacies of the new LMIA advertising rule, its implications, step-by-step guides for compliance, and related developments, including the impending end to the temporary suspension of advertising requirements for primary agriculture positions.

Whether you’re an employer navigating the Temporary Foreign Worker Program (TFWP), a job seeker eyeing opportunities in Canada, or simply interested in immigration trends, this comprehensive guide provides everything you need to know.

Full Details On New LMIA Advertising Rule

At the heart of the new rule is the requirement for employers to utilize the Job Bank Direct Apply feature in their LMIA-related job advertisements.

This isn’t optional; it’s now a fundamental component of demonstrating genuine recruitment efforts.

Direct Apply allows registered job seekers—who must be authorized to work in Canada—to submit their resumes directly through the Job Bank platform to specific postings.

Why this change? The government aims to improve transparency and efficiency.

In the past, employers could post jobs on Job Bank without necessarily engaging with applicants, leading to criticisms that some postings were mere formalities to justify hiring TFWs.

Now, by mandating Direct Apply, ESDC ensures that employers receive and consider domestic applications, reducing the perceived bias toward foreign workers.

Key elements of the rule include:

• Default Enablement: Direct Apply is automatically activated for all new job postings on Job Bank. Employers can disable it, but doing so—or failing to consider applications received through it—may be viewed as non-compliance with recruitment requirements, potentially leading to LMIA denials.
• Review Timeline: Employers must review resumes submitted via Direct Apply within 21 days of receipt. If not, the job advertisement could be suspended or removed from Job Bank, halting further applications and complicating the LMIA process.
• Multiple Application Methods: While Direct Apply is required, it cannot be the sole application option. Employers must provide at least one additional method, such as email, website forms, or in-person submissions, to accommodate diverse job seekers.

This rule applies across most LMIA streams, with some variations for high-wage positions or specific sectors.

For low-wage roles, employers must still conduct at least three distinct recruitment activities, including Job Bank, and target underrepresented groups with at least two methods.

Let’s explore a hypothetical scenario to illustrate. Imagine a restaurant owner in Toronto seeking to hire line cooks.

Under the old system, they might post on Job Bank, a local newspaper, and a food industry website.

Now, they must enable Direct Apply on Job Bank, review any resumes within 21 days, and document these actions for their LMIA application.

If a qualified Canadian applies via Direct Apply and is overlooked, the employer risks audit findings of insufficient domestic recruitment.

Step-by-Step Guide For Implementing Direct Apply

Compliance doesn’t have to be daunting. Here’s a detailed walkthrough based on official Job Bank procedures for creating or editing postings to include Direct Apply.

Creating a New Job Posting with Direct Apply

1. Sign In to Job Bank for Employers: Access your account via the official website (jobbank.gc.ca). If you’re new, register using your business number and contact details.
2. Navigate to Job Postings: From the dashboard, select “Job postings” and then “Create a new job posting.”
3. Complete Initial Steps: Fill in Step 1 (Employer details), Step 2 (Job title), Step 3 (Target audience—specify if targeting underrepresented groups), Step 4 (Job details like duties, location, and wage), and Step 5 (Requirements such as education and experience).
4. Step 6: How to Apply: Here, “By Direct Apply” is pre-selected. Ensure you check at least one other method (e.g., “By email” or “Through website”). This step is crucial—Direct Apply alone won’t suffice.
5. Preview and Submit: Review the posting for accuracy, then submit. Your ad will go live, and Direct Apply will start accepting resumes.

Adding Direct Apply to Existing Postings

1. Log In and Access Dashboard: Sign in and click “Job postings” from the left menu.
2. Edit the Posting: Locate the desired ad, click “Edit” in the upper left.
3. Go to Step 6: Check the “By Direct Apply” box if it’s not already selected. Add or confirm another application method.
4. Submit Changes: Preview and submit to update the posting.

These steps ensure your ad meets the new rule. Remember, postings must run for at least four weeks, and you need to use Job Match to invite two-star or higher rated candidates in the first 30 days for low-wage positions.

Viewing and Managing Resumes Through Direct Apply

Once applications start flowing in, efficient management is key to avoiding the 21-day review penalty.

1. Access Dashboard: Sign in and click “Applicants and matches” on the left menu.
2. View Resumes: In the “Resumes” column, click the button indicating the number of submissions.
3. Preview and Download: Under “Applicant resumes,” preview the CV (which may include a match score if the applicant used Job Bank’s Resume Builder) or download it. Note: Previewing or downloading notifies the applicant, promoting transparency.

Employers should document reviews—note why candidates were shortlisted or rejected—to support LMIA applications and potential inspections.

Resumes are stored securely on Job Bank, aiding record-keeping for the required six years.

Benefits of this system include centralized storage, easy downloading, and match insights, which can speed up hiring.

However, challenges like high volume of applications in competitive markets may require dedicated HR resources.

Impacts on Employers: Opportunities and Challenges

The new rule presents a mixed bag for Canadian businesses. On the positive side, it simplifies access to a pool of pre-vetted job seekers, potentially reducing recruitment costs.

For small businesses, the default enablement means less setup time, and the match feature helps identify strong fits quickly.

However, the 21-day review requirement adds administrative burden. Employers in fast-paced industries might struggle with timely responses, risking ad takedowns.

Non-compliance could lead to LMIA refusals, delaying TFW hires and affecting operations—think seasonal industries like tourism or construction where timing is critical.

Larger firms with robust HR systems may adapt seamlessly, but SMEs could need training or external consultants.

Overall, this rule encourages ethical hiring, aligning with Canada’s emphasis on protecting vulnerable workers and promoting diversity.

From an economic perspective, by enforcing active engagement with domestic applicants, the rule could boost employment rates among Canadians, particularly in underrepresented groups.

In 2024, labor force participation for Indigenous peoples and persons with disabilities lagged behind national averages, and this targeted approach aims to bridge that gap.

Implications for Job Seekers and Temporary Foreign Workers

For Canadian job seekers, the rule is a win.

Direct Apply streamlines applications, allowing quick submissions without navigating multiple sites.

The match score provides feedback, helping refine resumes. Moreover, knowing employers must review within 21 days reduces ghosting frustrations.

TFWs benefit indirectly: stronger domestic recruitment means LMIAs are issued only when truly needed, potentially leading to more stable positions.

However, stricter rules might slow processing times, affecting visa timelines.

Internationally, this could influence migration patterns. Aspiring immigrants might prioritize building profiles on Job Bank, especially those in Express Entry pools, where LMIA-backed offers remain valuable despite recent changes.

The Ending of the Temporary Suspension for Primary Agriculture Positions

In a related development, the temporary suspension of minimum advertising requirements for primary agriculture LMIA applications is set to end on December 31, 2025.

Introduced in January 2022 to address acute labor shortages during the pandemic, this suspension allowed employers in farming, livestock, and related fields (NOC codes like 82030 for agricultural service contractors) to skip submitting ad proofs with applications.

Starting January 1, 2026, full advertising requirements resume, including Job Bank postings with Direct Apply.

Employers must continue recruiting domestically, focusing on underrepresented groups, and maintain records for inspections—even during the suspension period.

This shift is timely, as Canada’s agriculture sector faces ongoing challenges like climate change and supply chain disruptions.

Farms relying on TFWs (e.g., seasonal workers for harvesting) will need to ramp up domestic outreach, potentially increasing costs but fostering local employment.

For example, a fruit grower in British Columbia might now advertise on Job Bank, local community boards, and Indigenous networks, using Direct Apply to capture resumes from vulnerable youth.

With Canada’s economy facing ongoing labor shortages in sectors like agriculture, healthcare, and technology, these adjustments are poised to reshape how businesses recruit.

The new LMIA advertising rule, now in effect, marks a pivotal step toward a more equitable and efficient labor market.

By mandating Job Bank Direct Apply and timely reviews, Canada reinforces its dedication to domestic workers while maintaining access to global talent.

As the agriculture suspension ends in December 2025, employers across sectors must adapt proactively.

This evolution isn’t just regulatory—it’s an opportunity for businesses to build diverse, resilient teams.

Stay informed, comply diligently, and contribute to Canada’s vibrant economy.

For more details, visit canada.ca or jobbank.gc.ca.

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