One employer given $1-million penalty for failing to provide proper wages and working conditions, not complying with labour laws, failing to provide workplace free of abuse
The government of Canada is intensifying its oversight of the Temporary Foreign Worker (TFW) Program, with a strong focus on employer compliance and worker protection.
In the 2024–2025 fiscal year, Employment and Social Development Canada (ESDC) conducted 1,435 employer compliance inspections, identifying 10% of employers as non-compliant.
During this period, penalties more than doubled—from $2,067,750 to $4,882,500—and 36 employers were banned from the program, a threefold increase from the previous year.
“The TFW Program is a last resort measure for businesses – it is no substitute for Canadian talent, and its misuse will never be permitted,” said Minister Patty Hajdu, responsible for Jobs and Families and the Federal Economic Development Agency for Northern Ontario.
“Strengthening our inspection practices to weed out employers who misuse the program puts workers at the forefront and safeguards their well-being while we build, together, one Canadian economy that will benefit all generations.”
Non-compliant employers
In September, an employer in the fish and seafood sector received a $1 million penalty and a 10-year ban—the largest ever issued by the department—for failing to provide proper wages and working conditions, not complying with labour laws, and failing to provide a workplace free of abuse, said the government.
Other examples of non-compliance include:
- An agriculture sector employer fined $212,000 and banned for two years for failing to provide proper working conditions and required documentation.
- A residential building construction employer fined $161,000 and banned for five years for failing to provide proper wages and working conditions and not complying with labour laws.
- A long-haul trucking employer fined $150,000 for not genuinely operating a business and failing to provide required documentation.
The government said it continues to enhance the TFW Program’s integrity and worker protections, including a confidential tip line available 24/7 in 200 languages and anonymous online reporting tools. ESDC also works with partners such as IRCC, Canada Border Services Agency, and the RCMP to share information on fraudulent or criminal activity.
Employers found non-compliant are listed on a public-facing website managed by Immigration, Refugees and Citizenship Canada (IRCC).
Recently, Quebec’s Minister of the French Language criticized the federal government’s approach to temporary foreign workers, calling them “too tough” in some regions: “Our regional economy is paying the price right now,” the minister said, according to a report from The Canadian Press (CP).
Reasons for non-compliance with TFWP
Employers may be found non-compliant for a range of reasons, including:
- Failing to provide proper wages or working conditions
- Not keeping required documentation
- Not showing up for inspections or providing requested documents
- Violating federal, provincial, or territorial labour laws
- Not making enough effort to hire or train Canadian citizens or permanent residents
- Failing to provide safe, abuse-free workplaces
A series of measures introduced in response to a tightening labour market in September 2024 led to a 50% overall reduction in applications to the TFW Program, with a 70% drop in the low-wage stream, said Ottawa.
Workers under the TFW Program currently make up about 1% of the Canadian workforce, mainly in sectors such as agriculture, food processing, construction, and health care.
Employers seeking to use the program must first demonstrate that they have made genuine attempts to recruit workers from within Canada and must continue recruiting while their application is pending. The government maintains that there is a “stringent process in place to ensure that Canadian workers are always prioritized first.”
With some politicians suggesting that the Temporary Foreign Worker Program (TFWP) should be put to an end, Canadians are divided on the matter, according to a recent report.
Overall, 44% of Canadians support phasing out the program, while 30% are opposed and 18% are neutral or undecided, reports Abacus Data.
