Employer Penalties More Than Double Under Temporary Foreign Worker Program

A federal enforcement update released on July 9, 2026 shows a sharp rise in penalties under the Temporary Foreign Worker Program. Between April 1, 2025, and March 31, 2026, officials finalized 1,488 compliance inspections, focusing on files with the highest risk of non-compliance. Of the employers inspected, 12% were found non-compliant. Penalties exceeded $10.2 million, more than double the previous year’s $4.5 million, and 30 employers were banned from the program.

The program remains a last-resort labour measure, not a substitute for recruiting citizens and permanent residents. Employers must prove that domestic workers were considered first, recruitment and training efforts were genuine, and temporary foreign workers receive safe, healthy and dignified conditions. The responsible minister’s position was that worker protection, lawful hiring, and firm action against misuse are all necessary to support a stable economy.

Low-Wage LMIA recruitment now faces deeper review

The results build on restrictions introduced in September 2024 and newer measures intended to protect the domestic labour market. The most significant recruitment change is the requirement to advertise for 8 consecutive weeks, increased from 4 weeks, before submitting a Low-Wage Labour Market Impact Assessment application.

• Advertise the position for 8 consecutive weeks before submitting the LMIA application.
• Show adequate efforts to recruit youth for the available position.
• Provide recruitment information that can be assessed against current Job Bank data, including information about domestic job seekers and Employment Insurance recipients.
• Expect stringent review in higher-risk sectors, including retail, food services, accommodation, trucking, and industries with high youth employment.
• Keep accurate records because analytics, tips, allegations, inspections, and information identified during LMIA processing may all be used to detect misuse.

A strong Low-Wage LMIA file should include advertising dates, job postings, applicant results, interview notes, reasons for rejecting candidates, youth-focused recruitment, and evidence that the wage and duties match the position. The release does not state or change the LMIA application fee. A precise 2026 fee should therefore be verified on the official application page before filing, and prohibited recruitment or processing costs must not be transferred to a worker.

The process usually starts with the employer’s LMIA application. After a positive decision, the foreign worker normally uses the LMIA and job offer to apply for an employer-specific work permit. Approval does not end the employer’s duties. Wages, occupation, working conditions, workplace protections, and records may later be examined during an inspection.

Penalty examples show the cost of non-compliance

A long-haul trucking employer in Manitoba received a $240,000 penalty and a 5-year ban for improper working conditions, labour-law breaches, and failure to provide required documents to inspectors.

A management, scientific and technical consulting employer in Quebec was fined $122,000 and banned for 5 years. The violations included placing the worker outside the occupation described in the job offer, submitting inaccurate LMIA information, and failing to make reasonable efforts to maintain an abuse-free workplace.

A restaurant employer in Nova Scotia received a $126,000 penalty and a 2-year ban for wage and working-condition failures, labour-law non-compliance, and inadequate protection from workplace abuse. Earlier linked enforcement reporting referenced a 36% increase in penalties, while the latest results show total penalties have now more than doubled year over year.

These examples confirm that compliance continues after recruitment. A mismatch between the LMIA, job offer, payroll, actual duties, or worksite conditions can create separate violations. Employers should review every approved position before the worker starts and regularly afterward, especially when duties, locations, schedules, or wages change. This is particularly important in sectors facing targeted scrutiny.

Inspections, public listings, and worker reporting

Temporary foreign workers represent approximately 1% of the labour force and less than 10% of all non-permanent residents. Although the program is small, the compliance system can impose administrative monetary penalties of up to $1 million per year, together with temporary or permanent bans. Non-compliant employers may also appear on a public list managed by the federal immigration department.

Workers and other parties may report suspected wrongdoing confidentially by telephone or online. The telephone service operates 24 hours a day, 7 days a week. Live agents provide help in more than 200 languages from Monday to Friday, 6:30 a.m. to 8:00 p.m. EST. Information suggesting fraud or criminal conduct may be shared among employment authorities, the federal immigration department, border enforcement, and federal police.

The federal government says it will continue working with provinces, territories, industry representatives, and labour organizations while reducing employer reliance on the program. The practical lesson is that every statement in an LMIA should be treated as an ongoing compliance commitment. Stronger inspections may improve worker protection, but they also make accurate job, payroll, and work permit documentation more important.

With recruitment records, wages, duties, and workplace protections now facing stronger data review and targeted inspections, even small inconsistencies can result in serious penalties or bans. Employers and workers dealing with these difficulties may benefit from early legal review, and our immigration consultant can assist with preparing, advising on, and representing LMIA and related work permit applications.