What can an employer do if Service Canada refuses an LMIA application?

When Service Canada refuses an LMIA application, it provides reasons for the refusal. Employers have a few options: they can request a reconsideration of the decision, reapply with a stronger or corrected application, or — depending on the circumstances — seek an exemption if the position is eligible for one.

Reconsideration requests are not a formal appeal process, and Service Canada is not obligated to grant them. They are more appropriate when there is a clear factual error or procedural unfairness in how the original application was assessed, rather than a difference of opinion about the outcome.

Reapplying is often the more practical path. The refusal letter should explain what was missing or deficient, and a new application can address those gaps — for example, by providing more robust recruitment records, adjusting the wage to meet prevailing wage requirements, or improving the completeness of the application.

Judicial review of LMIA decisions at the Federal Court is possible but uncommon and requires legal representation. Because LMIA refusals often have a practical fix (correcting the application), most employers address the issue through a well-prepared reapplication rather than litigation.