What happens to temporary foreign workers when you buy a business?

A buyer may find that some staff hold employer-specific work permits, which may depend on a labour market impact assessment (LMIA). This page reports what IRCC and ESDC say on their pages, read on 4 November 2026. It does not say what will happen to any worker. Deavo is not an immigration adviser, and each worker’s situation turns on the permit, the LMIA and how the deal is structured. See temporary foreign worker for the term.

What IRCC says about a takeover

IRCC’s help-centre answer on mergers and takeovers says the new company takes responsibility for temporary workers at the business locations included in the merger if conditions it lists are met. The list names two items: that it becomes the successor in interest by taking over the old company’s assets and liabilities, and that it takes over the portion of the business that employs the workers. Read the page itself for how the two items combine. IRCC adds that the new employer does not need to submit a new offer of employment, and the worker does not need a new work permit, if both companies run the same type of business and none of the work permit conditions change, including wages, job duties and work location. If the type of business, the wages, the job duties or the work location changes, affected workers will need new work permits and cannot keep working until they get them. In that case, IRCC says the new employer will need to submit a new offer of employment for each worker or get an LMIA, if the job is not LMIA-exempt. IRCC tells both companies to keep their merger or takeover documents in case of a compliance inspection.

The permit names the employer

ESDC lists a change in employer among its examples of material changes that do not respect the terms of the positive LMIA letter and annexes, and says the employer is responsible for determining whether a modification is minor or material. For the worker’s side, see employer-specific work permit. Ask the seller for each permit, the LMIA behind it and its expiry date.

Employer compliance to check

ESDC’s employer compliance page says employers must keep relevant records, including documents related to the LMIA, and must inform ESDC right away of any changes or errors with an approved LMIA. It says that during an inspection ESDC verifies whether the employer follows the conditions set out in the offer of employment, the LMIA decision letter, its annexes and the Immigration and Refugee Protection Regulations. It lists consequences of non-compliance, including a permanent ban from the program for the most serious violations and publication of the business name and address (not when the sanction is a warning). Ask the seller whether any inspection has happened, and ask your lawyer how a share or asset purchase affects exposure.

For who may advise on these questions, see who can give immigration advice.