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

GATINEAU, QC, Jan. 17, 2025 /CNW/ - 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.

Quotes 

"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."
– Steven MacKinnon Minister of Employment, Workforce Development and Labour

Quick Facts 

• To ensure the rights of temporary foreign workers are protected, and to uphold their health and safety under the Immigration and Refugee Protection Regulations (IRPR), the TFW Program has an Employer Compliance Regime in place, which aims to verify employers' adherence to program requirements and conditions through compliance inspections, and to issue Administrative Monetary Penalties (AMP) and bans if they are not respected.
• Employers who are found to be non-compliant with TFW Program conditions are listed on a public-facing website managed by Immigration, Refugees and Citizenship Canada (IRCC).
• To help further protect the health and safety of temporary foreign workers and prevent abuse, ESDC administers a confidential tip line available 24 hours a day, 7 days a week, with live agents offering services in over 200 languages, Monday to Friday from 6:30 AM to 8:00 PM Eastern time. These agents can help workers and anyone else with anonymously reporting situations of mistreatment or abuse. The tip line also provides services to help inform workers of their rights.
• The Labour Market Impact Assessment (LMIA) is an important tool that helps protect the Canadian labour market from possible negative impacts of hiring temporary foreign workers, such as wage suppression or displacement of Canadian workers. Employers must apply for an LMIA and receive a positive assessment before they can seek to hire temporary foreign workers.
• As part of the LMIA, all job offers made by employers must be assessed to ensure that both the business and the job offer are genuine and legitimate. Applicants must provide supporting documents, as detailed on this web page: Business legitimacy - Canada.ca.
• ESDC works with partners such as Immigration, Refugees and Citizenship Canada (IRCC), Canada Border Services Agency (CBSA) and the Royal Canadian Mounted Police (RCMP) to share information on any fraudulent or criminal activity that may be uncovered during the assessment of the employer's LMIA application, or over the course of an inspection.

Associated Links 

• Minister Boissonnault provides next steps on recent changes to the Temporary Foreign Worker Program
• Minister Boissonnault announces new measures to address fraud in Canada's Temporary Foreign Worker Program
• Government of Canada continues to take action to protect Temporary Foreign Workers, non-compliant employer penalties increased by 36%
• Government of Canada takes action to improve employer compliance and better protect foreign workers
• Backgrounder: Temporary Foreign Worker Program – Compliance Regime
• Government of Canada strengthens protections for temporary foreign workers as new regulations come into force
• Ministerial Instructions
• How to report abuse of temporary foreign workers
• Employer compliance - Canada.ca

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SOURCE Employment and Social Development Canada

Contacts : For media enquiries, please contact: Matthieu Perrotin, Senior Communications Advisor & Press Secretary Office of the Minister of Employment, Workforce Development and Labour, [email protected]; Media Relations Office, Employment and Social Development Canada, 819-994-5559, [email protected]