The Temporary Foreign Worker (TFW) Program plays a critical role in supporting Canada’s economy by allowing employers to hire foreign workers temporarily when qualified Canadian workers are not available. However, program misuse by some employers has led to concerns over worker safety and fair employment practices. In response, the Government of Canada has implemented stricter enforcement measures, tougher penalties, and expanded monitoring efforts to protect temporary foreign workers (TFWs) and ensure compliance with program regulations.
Increased Inspections and Tougher Penalties
Between April 1 and September 30, 2024, Employment and Social Development Canada (ESDC) conducted 649 employer compliance inspections, with 11% of employers found non-compliant. Enforcement actions included:
- $2.1 million in Administrative Monetary Penalties (AMPs)—more than double the penalties issued in the same period in 2023.
- 20 employers banned from the TFW Program—a fivefold increase from the same timeframe last year.
Notable cases of non-compliance included:
- A seafood processing employer fined $365,750 and banned for two years for failing to retain records, violating hiring laws, and failing to provide a safe workplace.
- A janitorial maintenance employer fined $124,000 and banned for five years for improper wages and working conditions.
- A farming sector employer fined $75,000 and banned for five years for failing to provide required documentation and failing to attend inspections.
Stricter Rules for Employers
To combat program misuse, ESDC has introduced tougher penalties and enhanced enforcement, including:
- Higher fines—Employers failing to provide required documents, claiming a fraudulent business, or refusing inspections now face up to $45,000 per violation and a five-year ban.
- Penalties for worker mistreatment—Employers who neglect business operations now face fines of $15,000 per affected worker, instead of a flat $15,000 fine.
- Stronger oversight of LMIAs—The Labour Market Impact Assessment (LMIA) process now includes:
- Increased scrutiny in high-risk industries.
- Removal of lawyer and accountant attestations as proof of business legitimacy.
- Ministerial Instructions allowing the suspension of positive LMIAs for suspected fraudulent activity.
These changes allow the government to detect program abuse earlier and ensure that only legitimate businesses participate in the TFW Program.
Safeguarding Temporary Foreign Workers
To protect the rights of TFWs, the government has implemented several additional measures:
- Public transparency—Non-compliant employers are listed on a public website managed by IRCC.
- 24/7 confidential tip line—Workers can report mistreatment or abuse anonymously in over 200 languages.
- Stronger inter-agency collaboration—ESDC works with IRCC, CBSA, and RCMP to detect fraud, criminal activity, and labor rights violations.
The Government of Canada is taking decisive action to ensure that temporary foreign workers are treated fairly, paid properly, and protected from exploitation. By increasing inspections, strengthening penalties, and enhancing LMIA oversight, Canada is holding employers accountable while ensuring that the TFW Program serves its intended purpose—filling genuine labor shortages without harming Canadian workers or the economy.
Employers and foreign workers must stay informed about these new compliance measures. If you need assistance with LMIA applications, compliance requirements, or work permits, our expert immigration consultants can help. Contact us today for personalized guidance and legal support.
