Can an employer transfer an LMIA to a new employer if the business is sold or restructured?

An LMIA is specific to the employer who applied for it and is not automatically transferred if that employer sells their business, changes their legal name, restructures, or is acquired. This is an important consideration for both employers and foreign workers when a business changes hands.

If a business is sold and the purchaser becomes the foreign worker's new legal employer, the existing LMIA may no longer cover the employment relationship because the named employer has changed. In that case, the new employer would generally need to apply for a new LMIA (unless an exemption applies), and the worker would need to apply for a new work permit naming the new employer.

There may be some flexibility in situations involving internal corporate restructuring (such as a name change or amalgamation) where the substance of the employment relationship has not changed, but this requires careful legal analysis to confirm.

Workers caught in a business transition should understand that their work permit may be affected by a change in employer and should seek immigration legal advice as early as possible when they become aware of a sale or restructuring.