Canada Doubles Penalties for Employers Abusing the Temporary Foreign Worker Program

In a decisive move to protect temporary foreign workers and uphold the integrity of the Temporary Foreign Worker Program (TFWP), Canada has doubled penalties for non-compliant employers. With higher fines, extended bans, and stricter inspections, the government is ensuring that employers adhere to program rules and provide a safe, fair environment for all workers.

On This Page You Will Find:

• Overview of New TFWP Penalties: Details about doubled fines, extended bans, and per-worker penalties for non-compliant employers.
• Key Changes to LMIA Compliance: Updates on stricter oversight, elimination of attestations, and proactive LMIA suspensions.
• Results of Enhanced Inspections: Insights into increased fines, bans, and compliance inspections from April to September 2024.
• Examples of Employer Violations: Specific cases of non-compliance in industries like seafood processing, farming, and janitorial services.
• Worker Protections and Reporting Mechanisms: Information on the confidential tip line, public accountability, and collaborative enforcement efforts.
• Government Commitment: Statements from officials emphasizing the importance of worker rights and program integrity.

This initiative is part of Employment and Social Development Canada’s (ESDC) ongoing efforts to combat program abuse, enhance transparency, and maintain fairness in the Canadian labour market.

New Penalties for Non-Compliance

Starting in the fall of 2024, employers found to be violating TFWP conditions face harsher penalties:

• Increased Fines: Penalties now reach up to $45,000 per violation, a significant rise from the previous $15,000 cap.
• Extended Bans: Employers who violate rules can now be banned from the TFWP for up to five years, compared to shorter bans in the past.
• Per-Worker Penalties: Non-compliant employers who fail to meet business operations requirements are fined $15,000 for each negatively affected worker, rather than a flat fine of $15,000 per incident.

These penalties target employers who refuse inspections, fail to retain proper records, or engage in illicit business practices.

Enhanced Oversight and Stricter LMIA Compliance

To strengthen program integrity, ESDC has implemented rigorous measures to monitor Labour Market Impact Assessment (LMIA) compliance:

1. Targeted Oversight: High-risk applications are scrutinized more carefully during LMIA processing and inspections.
2. Elimination of Attestations: Employers can no longer use attestations from accountants or lawyers as proof of business legitimacy. This ensures job offers are genuine.
3. Proactive Suspensions: Ministerial Instructions empower ESDC to suspend positive LMIAs when misuse or illicit activity is suspected.

These measures allow authorities to identify and address potential misuse earlier in the process, reducing the likelihood of abuse and safeguarding vulnerable workers.

A Clear Impact: Stronger Enforcement

The results of these measures are already evident. Between April 1 and September 30, 2024:

• 649 Inspections Conducted: ESDC performed compliance inspections across multiple sectors.
• $2.1 Million in Fines: Administrative Monetary Penalties more than doubled compared to the same period in 2023.
• 20 Employers Banned: Five times the number of bans issued in the same timeframe last year.

Non-compliant employers faced significant consequences, including:

• A seafood processing company fined $365,750 and banned for two years after failing to retain records, comply with hiring laws, and provide proper compensation.
• A janitorial services company fined $124,000 and banned for five years for violating pay and working condition requirements.
• A farming operation fined $75,000 and banned for five years for failing to cooperate with inspectors and provide documentation.

Worker Protections and Reporting Mechanisms

To protect the rights of temporary foreign workers, the government has enhanced safeguards:

• Confidential Tip Line: Workers can report mistreatment anonymously through a 24/7 tip line. Multilingual live agents provide support in over 200 languages during extended hours.
• Public Accountability: A list of non-compliant employers is maintained on Immigration, Refugees and Citizenship Canada’s (IRCC) public website.

These measures empower workers to report abuse and ensure employers are held accountable.

Employment Minister Steven MacKinnon said: “Workers in Canada deserve and expect to feel safe and protected in the workplace. That’s why we’re taking steps to further protect temporary foreign workers and hold bad actors accountable. Today’s compliance report clearly demonstrates that our enhanced inspection practices, stronger enforcement measures, and tougher penalties are working. Employers must follow the rules, and we will continue to take decisive action to protect workers’ rights and well-being while growing our economy.”

Why the Changes Are Necessary

The TFWP plays a critical role in filling labour shortages across Canada, allowing businesses to hire temporary foreign workers when qualified Canadians are unavailable. However, program misuse undermines its objectives by exploiting vulnerable workers and displacing Canadian employees.

Misuse also damages public trust in the program and the broader immigration system. These stricter penalties and inspections aim to restore that trust and ensure that Canada’s economy benefits from ethical and fair practices.

Collaborative Efforts for Greater Integrity

The enforcement of TFWP regulations involves partnerships across multiple government agencies, including:

• IRCC: Oversees immigration compliance and publishes lists of non-compliant employers.
• Canada Border Services Agency (CBSA): Monitors border activities to detect program misuse.
• Royal Canadian Mounted Police (RCMP): Investigates fraudulent and criminal activities.

Together, these organizations share information to identify and prevent violations.

Looking Ahead

The Canadian government remains committed to ensuring the TFWP operates as intended—supporting economic growth while protecting worker rights. By enforcing stricter penalties, enhancing inspections, and improving collaboration across agencies, Canada sets a global example for maintaining a fair and ethical labour market.

These measures demonstrate that protecting vulnerable workers and maintaining program integrity are top priorities for Canada. Employers who fail to comply with the rules will face significant consequences, ensuring a more equitable system for everyone involved.

FAQ: TFW Program and New Penalties