New mandatory fee hits Canadian employers hiring international workers
On This Page You Will Find:
- How the new $230 employer compliance fee affects your hiring plans
- Exact steps to pay through Canada's Employer Portal system
- Which employers can legally skip this mandatory fee
- Critical deadlines that could kill your foreign worker application
- Real costs of hiring international talent in 2026
Summary:
Canadian employers face a new reality when hiring international workers through the International Mobility Program. The $230 employer compliance fee has become mandatory for most LMIA-exempt positions, adding significant costs to recruitment budgets. This comprehensive guide reveals exactly when you must pay, how to navigate the Employer Portal system, and which exemptions could save your organization money. Understanding these requirements isn't optional—failure to comply means automatic work permit refusal for your prospective employees.
🔑 Key Takeaways:
- All employers hiring through International Mobility Program must pay $230 compliance fee
- Payment must be completed BEFORE the foreign worker applies for their permit
- Open work permit holders are exempt from this employer fee requirement
- Failed payments result in automatic work permit application refusal
- Total hiring costs now reach $385 CAD when combined with worker's permit fee
Maria Santos learned about Canada's employer compliance fee the hard way. As HR director for a Toronto tech startup, she thought hiring their brilliant software developer from Brazil would be straightforward. Then came the surprise: a mandatory $230 fee that wasn't in her budget—and strict deadlines that could derail their entire recruitment timeline.
If you're planning to hire international talent in 2026, you're facing the same challenge Maria discovered. The employer compliance fee has become a critical piece of Canada's immigration puzzle, and getting it wrong means watching your perfect candidate's work permit application get rejected.
What Exactly Is the Employer Compliance Fee?
The employer compliance fee represents Canada's way of ensuring companies hiring international workers contribute to oversight costs. Think of it as your entry ticket to the International Mobility Program (IMP)—the system that allows you to hire foreign nationals for LMIA-exempt positions.
Here's what makes this fee particularly important: it's not just another government charge. The $230 goes directly toward funding employer compliance activities and workplace inspections that protect both workers and the integrity of Canada's immigration system.
The fee applies specifically when you're hiring someone for a position that doesn't require a Labour Market Impact Assessment (LMIA). These positions include intra-company transfers, international agreements like NAFTA/USMCA, and various other categories that make up roughly 60% of all temporary foreign worker applications.
When Your Company Must Pay This Fee
The compliance fee kicks in under specific circumstances that catch many employers off guard. You'll need to pay when your organization wants to bring a foreign national to Canada for any LMIA-exempt position through the International Mobility Program.
The timing is crucial: you must submit your offer of employment and pay the fee before your prospective employee applies for their work permit. This isn't a parallel process—it's sequential, and getting the order wrong means starting over.
Consider this scenario: you've found the perfect marketing manager from the UK. They're ready to relocate, you've agreed on terms, and they're preparing their work permit application. If you haven't already paid your compliance fee and submitted the offer of employment, their application will be refused automatically. No appeals, no second chances.
The fee requirement also applies regardless of your company size. Whether you're a multinational corporation or a five-person startup, the $230 compliance fee remains the same.
Smart Exemptions That Could Save You Money
Not every employer faces this fee, and understanding the exemptions could save your organization significant money over time. The most straightforward exemption applies when the foreign worker themselves is exempt from paying work permit processing fees.
Open work permit holders represent the biggest exemption category. If you're hiring someone who already holds an open work permit—such as a spouse of a skilled worker or international student—you won't pay the employer compliance fee. This makes sense because open work permits allow holders to work for any Canadian employer without restriction.
Certain diplomatic and government-related positions also qualify for exemptions, though these apply to a much smaller pool of applicants.
Here's a practical tip: if you regularly hire international talent, maintaining relationships with workers who have open work permits can significantly reduce your compliance costs over time. A software developer with an open work permit might cost you nothing in government fees, while hiring someone requiring a closed work permit adds $230 to your recruitment budget.
Step-by-Step Payment Process Through the Employer Portal
Paying the compliance fee requires navigating Canada's Employer Portal system—a process that intimidates many first-time users but becomes routine once you understand the steps.
Creating Your Employer Portal Account
Start by registering your organization in the Employer Portal system. You'll need basic company information, including your business registration details and primary contact information. The verification process typically takes 24-48 hours, so don't wait until the last minute.
Submitting Your Offer of Employment
Once your account is active, you'll submit a detailed offer of employment for your prospective worker. This includes job duties, salary, location, and duration of employment. The system generates a unique offer number that your employee will need for their work permit application.
Completing the Payment
When you're ready to pay, select "Transmit and Pay" within the portal. The system redirects you to the Receiver General's online payment website, where you can use major credit cards or other approved payment methods.
After completing payment, print your transaction receipt immediately. Your employee needs a copy of this receipt along with the A-Number for their work permit application. Losing this documentation means delays and potential complications.
Alternative Payment Options
Some organizations, particularly government departments, may need to use Interdepartmental Settlements procedures instead of credit card payments. In these cases, contact the appropriate financial officer in your department to arrange alternative payment processing.
Critical Requirements That Make or Break Applications
The compliance fee system includes several non-negotiable requirements that determine whether your hiring process succeeds or fails. Understanding these requirements prevents costly mistakes and timeline delays.
Payment timing represents the most critical requirement. The fee and offer of employment must be submitted and processed before your prospective employee applies for their work permit. Even one day late means automatic refusal.
Documentation requirements are equally important. Your employee needs both the payment receipt showing the $230 fee and the unique offer of employment number generated by the portal. These aren't suggestions—they're mandatory components of the work permit application.
The offer of employment number comes with its own restriction: it can only be used for one work permit application. If your employee's application gets refused for other reasons, you'll need to generate a new offer and pay the fee again.
Understanding the True Cost of International Hiring
The $230 employer compliance fee represents just part of your total hiring costs when bringing international talent to Canada. Your prospective employee still pays the $155 work permit application fee, bringing the combined government fees to $385.
For companies hiring multiple international workers, these costs add up quickly. A company bringing five workers through the International Mobility Program faces $1,150 in compliance fees alone, not including the workers' individual permit fees.
However, consider the alternative costs: LMIA applications, where required, cost $1,000 per position and involve lengthy processing times. The compliance fee often represents a bargain compared to the LMIA route.
Budget planning becomes crucial when you're scaling internationally. Many successful companies build compliance fees into their recruitment budgets from the start, treating them as a standard cost of accessing global talent.
Common Mistakes That Destroy Applications
Even experienced HR professionals make critical errors with the compliance fee process. Learning from these mistakes saves time, money, and frustration.
The most expensive mistake involves payment timing. Employers who assume they can pay the fee after their employee applies discover too late that this approach guarantees refusal. The sequential nature of this process isn't negotiable.
Documentation errors create another common problem. Employers who lose payment receipts or fail to provide the correct A-Number to their employees cause unnecessary delays. Always maintain multiple copies of payment documentation.
Some employers try to reuse offer of employment numbers for multiple applications, not realizing each number works for only one work permit application. This mistake requires starting the entire process over.
Looking Ahead: What This Means for Your Hiring Strategy
The employer compliance fee represents Canada's commitment to maintaining oversight of international hiring while streamlining the process for legitimate employers. Understanding and budgeting for this fee becomes essential for any organization planning to access global talent.
For companies just starting to hire internationally, factor the $230 compliance fee into every position requiring an LMIA-exempt work permit. This upfront planning prevents budget surprises and timeline delays.
Organizations already hiring international workers should review their current processes to ensure compliance with payment timing requirements. A single missed deadline can derail carefully planned recruitment efforts.
The compliance fee system, while adding costs, actually simplifies hiring compared to the LMIA process. Companies that master the Employer Portal system often find they can move faster and more efficiently when bringing international talent to Canada.
Your success in navigating Canada's employer compliance fee requirements directly impacts your ability to access the global talent your organization needs to thrive. The $230 fee isn't just a government charge—it's your investment in building a truly international team.
FAQ
Q: What exactly is the $230 employer compliance fee and which employers must pay it?
The $230 employer compliance fee is a mandatory payment required from Canadian employers who want to hire foreign workers through the International Mobility Program (IMP) for LMIA-exempt positions. This fee funds government oversight activities and workplace inspections that protect workers and maintain immigration system integrity. All employers must pay this fee regardless of company size—whether you're a multinational corporation or a five-person startup, the cost remains $230. The fee applies to approximately 60% of temporary foreign worker applications, including intra-company transfers, positions under international agreements like NAFTA/USMCA, and various other LMIA-exempt categories. You cannot avoid this fee if you're hiring through the IMP system, and failure to pay results in automatic work permit refusal for your prospective employee.
Q: When exactly do I need to pay the compliance fee, and what happens if I get the timing wrong?
Payment timing is absolutely critical and non-negotiable. You must submit your offer of employment and pay the $230 fee BEFORE your prospective employee applies for their work permit. This is a sequential process, not parallel—getting the order wrong means automatic application refusal with no appeals or second chances. For example, if you find the perfect candidate from the UK and they're ready to apply for their work permit, but you haven't already completed your compliance fee payment and offer submission, their application will be rejected immediately. The system generates a unique offer number and payment receipt that your employee needs for their application. Plan for 24-48 hours for employer portal account verification, so don't wait until the last minute to start this process.
Q: How do I actually pay the fee through the Employer Portal system?
The payment process involves several steps through Canada's Employer Portal system. First, register your organization by providing business registration details and contact information—this verification takes 24-48 hours. Next, submit a detailed offer of employment including job duties, salary, location, and employment duration. The system generates a unique offer number your employee needs. When ready to pay, select "Transmit and Pay" which redirects you to the Receiver General's payment website where you can use major credit cards. After payment, immediately print your transaction receipt—your employee needs both this receipt and the A-Number for their work permit application. Government departments may use Interdepartmental Settlements instead of credit cards. Keep multiple copies of all documentation as losing payment receipts causes delays and complications.
Q: Are there any exemptions that could save my company from paying this fee?
Yes, several exemptions can save you the $230 compliance fee. The most common exemption applies when hiring open work permit holders, such as spouses of skilled workers or international students. Since open work permits allow holders to work for any Canadian employer without restrictions, no compliance fee is required. Additionally, if the foreign worker is exempt from paying work permit processing fees, you're also exempt from the employer compliance fee. Certain diplomatic and government-related positions qualify for exemptions, though these apply to fewer applicants. Strategic tip: maintaining relationships with workers who have open work permits can significantly reduce compliance costs over time. A software developer with an open work permit costs nothing in government fees, while hiring someone requiring a closed work permit adds $230 to your recruitment budget.
Q: What are the total costs of hiring international workers, and how should I budget for this?
The true cost extends beyond the $230 employer compliance fee. Your prospective employee pays an additional $155 work permit application fee, bringing combined government fees to $385 per hire. For companies hiring multiple international workers, costs multiply quickly—five workers mean $1,150 in compliance fees alone, plus $775 in employee permit fees, totaling $1,925. However, this often represents savings compared to LMIA applications, which cost $1,000 per position with lengthy processing times. Successful companies build compliance fees into recruitment budgets from the start, treating them as standard costs for accessing global talent. When scaling internationally, factor the $230 fee into every LMIA-exempt position to prevent budget surprises and timeline delays. The compliance fee system actually simplifies hiring compared to LMIA processes while maintaining necessary oversight.
Q: What critical mistakes should I avoid that could destroy my employee's work permit application?
The most expensive mistake involves payment timing—assuming you can pay after your employee applies guarantees automatic refusal. The sequential nature of this process is non-negotiable. Documentation errors create another major problem: losing payment receipts or providing incorrect A-Numbers to employees causes unnecessary delays, so maintain multiple copies of all payment documentation. Never attempt to reuse offer of employment numbers for multiple applications, as each number works for only one work permit application—this mistake requires restarting the entire process and paying the fee again. Some employers also fail to account for the 24-48 hour verification period for new Employer Portal accounts, creating last-minute timeline problems. Finally, don't assume company size or previous hiring experience exempts you from the fee—the $230 compliance fee applies universally to all employers using the International Mobility Program for LMIA-exempt positions.
