Hiring a caregiver with a Labour Market Impact Assessment (LMIA) is a big step for Canadian families. But what happens if, after approval — or even after the caregiver arrives — things don’t go as planned?
Here’s what families need to know in 2025.
1. Before the Caregiver Applies for a Work Permit
If your LMIA is approved but the caregiver has not yet submitted a work permit application, you may:
- Request a name change on the LMIA by filing Form ESDC-EMP5661 with Service Canada (at least 15 business days before expiry).
- Choose not to proceed — though the $1,000 LMIA fee is non-refundable.
2. If the Caregiver’s Work Permit Is Already Approved
Once the work permit is issued, the caregiver is tied to your family as their employer. If you change your mind:
- You may end the employment relationship according to provincial labour standards (notice or termination pay).
- You cannot simply transfer the LMIA to another caregiver — you will likely need to apply for a new LMIA.
3. If the Caregiver Arrives But It Doesn’t Work Out
Sometimes the fit isn’t right after the caregiver starts. In that case:
- Employers must respect employment standards for termination.
- Caregivers may seek another employer with a valid LMIA to apply for a new work permit.
- Employers may need to apply for a fresh LMIA if they still need a replacement caregiver.
4. Employer Compliance and Inspections
Even if the arrangement ends early, Service Canada may review whether the employer:
- Paid the caregiver the promised wage.
- Provided the required working conditions.
- Honoured the contract while the caregiver was employed.
Failure to comply can result in fines or bans from hiring foreign workers in the future.
Key Takeaways
- If the caregiver hasn’t applied for a work permit yet, you can request a name change or simply not proceed.
- If the work permit is already approved or the caregiver has started, you must follow labour standards to end the employment.
- A new LMIA is usually required to hire a replacement.
- Employers should treat the LMIA as a serious commitment, but they are not permanently stuck.
👉 Families should carefully plan before applying, but know there are options if things don’t work out.