Penalties doubled compared to last year for non-compliant employers using the Temporary Foreign Worker Program

The Temporary Foreign Worker (TFW) Program plays an important part in supporting Canada’s economy, by allowing employers to hire foreign workers temporarily when they cannot find qualified Canadians to fill jobs. Although most follow the rules, there are employers in Canada who misuse or abuse the TFW Program. Not only does this misuse impact the health and safety of temporary foreign workers, but it also hurts Canada’s economy and sets Canadian workers back.

Delivering on its responsibility to ensure that the health and safety of temporary foreign workers is protected, the Government of Canada monitors employer activity through a strict employer compliance regime. It has taken additional steps in recent years to combat program misuse, improve the quality and reach of inspections, and increase penalties for non-compliant employers.

Recent inspection data highlights the reach and impact of these improvements. Between April 1 and September 30, 2024, Employment and Social Development Canada (ESDC) conducted 649 employer compliance inspections, of which 11 percent were found to be non-compliant. Penalties for non-compliant employers have increased in comparison to the previous year. During this six-month period, ESDC issued $2.1 million in Administrative Monetary Penalties (AMP), more than double the amount in the same period in 2023. Inspections during this time resulted in 20 employers being banned from the TFW Program, a fivefold increase from the same time span last year.

From April 1 until September 30, 2024, non-compliance violations included:

• An employer in the seafood product preparation and packaging industry was fined $365,750 and banned from the program for two years after violating several requirements and conditions, including failing to retain necessary records, non-compliance with hiring and recruiting laws, not compensating foreign workers properly, and not providing a workplace free of abuse.
• An employer in janitorial maintenance was fined $124,000 and prohibited from participating in the TFW Program for five years for improper pay and working conditions.
• An employer in the farming sector was fined $75,000 and banned from the TFW Program for five years for failing to provide required documentation to inspectors, being absent from a scheduled meeting with inspectors, and failing to demonstrate they were operating a legitimate business.

To combat program misuse and increase worker protections, ESDC has implemented stricter guidelines for AMPs. In 2023, penalties increased from $15,000 to $45,000 and a 5-year ban for employers who do not provide documents and who are found to be claiming a business that does not exist or exists illicitly. Beginning in fall 2024, the same penalties also apply to employers who refuse to meet with inspectors and who do not attend inspections. Additionally, employers who are not actively engaged in their business operations now face penalties of $15,000 for each negatively affected temporary foreign worker, rather than a total fine of $15,000 for non-compliance.

ESDC also significantly expanded its efforts to monitor and combat Labour Market Impact Assessment (LMIA) misuse, implementing the following key changes:

• more rigorous oversight in high-risk areas, when processing LMIAs and conducting inspections;
• eliminating attestations from professional accountants or lawyers as proof of business legitimacy to help ensure job offers are genuine; and
• increased use of Ministerial Instructions to suspend positive LMIAs in cases of suspected Program misuse or illicit activity, preventing employers from hiring additional workers.

These changes have allowed ESDC to prevent suspected Program misuse or illicit activity at an earlier stage and to apply stricter application standards.

The Government of Canada continues to work closely with provinces and territories, industry stakeholders, labour organizations, and migrant worker support organizations to ensure the TFW Program supports compliant employers with genuine labour market needs, while prioritizing the health and safety of temporary foreign workers in Canada.