Penalties for non-compliant employers under the Temporary Foreign Worker (TFW) Program have doubled compared to last year as the federal government intensifies efforts to combat program misuse and protect workers' rights.
Between April 1 and September 30, 2024, Employment and Social Development Canada (ESDC) conducted 649 employer compliance inspections. Inspectors found 11 percent of employers to be non-compliant. During this period, the government issued $2.1 million in Administrative Monetary Penalties (AMPs), a sharp increase from the same period in 2023. Inspectors also banned 20 employers from the TFW program, a fivefold increase compared to last year.
Several cases during the six-month period demonstrated the seriousness of violations. For example, an employer in the seafood preparation industry was fined $365,750 and banned for two years for failing to provide a workplace free of abuse and violating compensation laws. Similarly, a janitorial maintenance company faced a $124,000 fine and a five-year ban for improper pay and working conditions. In contrast, a farming sector employer was fined $75,000 and banned for failing to provide documentation and cooperate with inspectors.
ESDC has implemented stricter AMP guidelines to combat program misuse, raising penalties to $45,000 and extending bans to five years for employers who fail to provide documents, refuse inspections, or claim illegitimate business operations. Beginning in fall 2024, penalties for non-compliance will be calculated per affected worker rather than as a total fine, significantly increasing financial consequences for violations.
ESDC has also intensified its monitoring of Labour Market Impact Assessment (LMIA) processes by introducing more rigorous oversight, removing attestations from accountants or lawyers as proof of business legitimacy, and using Ministerial Instructions to suspend LMIAs in suspected misuse cases.
Steven MacKinnon, Minister of Employment, Workforce Development, and Labour, emphasized the government's commitment to safeguarding workers' rights. "The 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," McKinnon said in a statement.