Ottawa doubles TFW Program penalties to $10.2 million as rules tighten

Employers using the Temporary Foreign Worker (TFW) Program faced more than double last year's monetary penalties for non-compliance, according to Employment and Social Development Canada (ESDC).

Monetary penalties issued to non-compliant employers under the program more than doubled to over $10 million over the past year.

From April 1, 2025, to March 31, 2026, the TFW Program completed 1,488 compliance inspections, with officers concentrating on sectors identified as having the highest risk of potential non-compliance. Of the employers inspected, 12% were found to be non-compliant with program requirements.

Non-compliant employers were collectively issued more than $10.2 million in monetary penalties, compared with $4.5 million the previous year, according to the department. A further 30 employers were banned from accessing the program entirely.

Tightening measures around TFWP

The increases follow tightening measures ESDC says were introduced in September 2024, with additional ones added more recently to reinforce compliance and protect the domestic labour market. The department's release did not specify the exact date of the newest measures.

"Workers in Canada deserve safe workplaces where their rights are protected, and strong economies depend on employers being able to find the workers they need to keep businesses operating and communities thriving,” said Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario.

“The TFW Program is a last resort measure for businesses – it is no substitute for Canadian talent, and its misuse will never be permitted. By strengthening our inspection practices to weed out employers who misuse the program, we are putting workers at the forefront and safeguarding their well-being as we build, together, one Canadian economy that will benefit all generations."

Enforcement cases detailed

Employment and Social Development Canada's release outlined several enforcement cases from the past year:

• A long-haul trucking employer in Manitoba was fined $240,000 and banned from the TFW Program for five years after failing to provide proper working conditions, failing to comply with federal and provincial labour laws, and failing to provide required documentation to inspectors.
• A management, scientific and technical consulting services employer in Quebec was fined $122,000 and banned for five years for failing to employ the worker in the occupation described in the job offer, providing inaccurate information in its LMIA application, and failing to make reasonable efforts to provide a workplace free of abuse.
• A restaurant employer in Nova Scotia was fined $126,000 and banned for two years for failing to provide proper wages and working conditions and for non-compliance with federal and provincial labour laws. Non-compliant employers are also named on a public-facing list maintained by Immigration, Refugees and Citizenship Canada (IRCC).

The full list of employers that have been penalized for violations of TFWP rules is available here.

Previously, a temporary help agency and its director were fined a combined $150,000 after failing to comply with wage repayment orders under Ontario’s Employment Standards Act, 2000 (ESA), the provincial government said.

New low-wage stream requirements

Employers seeking to hire a temporary foreign worker in the Low-Wage stream must now advertise the position for eight consecutive weeks before submitting a Labour Market Impact Assessment (LMIA) application, up from four weeks previously. Employers must also demonstrate adequate efforts to target youth in their recruitment for those positions.

ESDC said coordination between Job Bank and the TFW Program has been strengthened, giving processing officers more detailed and current information to assess an employer's recruitment efforts and the availability of domestic jobseekers, including Employment Insurance recipients.

The LMIA assessment process has also been enhanced with stricter reviews for high-risk sectors, which the department identified as those with high youth employment, along with retail, food services, accommodation, and trucking. Advanced analytics, combined with information from tips, allegations, and inspections, are now used at the LMIA processing stage to flag employers at higher risk of program misuse and to direct inspection resources accordingly, ESDC said.

Federal work permits set to expire for thousands for international workers in Manitoba are being extended, according to a release from Manitoba MPs Terry Duguid (Winnipeg South) and Kevin Lamoureux (Winnipeg North). Ottawa is extending the permits for 2,700 foreign workers until Dec. 31, 2027.