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Canada Tightens Oversight of Temporary Foreign Worker Program Amid Rising Employer Penalties

by Prabhjot Singh
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Canada is intensifying its enforcement of the Temporary Foreign Worker (TFW) Program as part of efforts to build lasting economic resilience and protect workers’ rights.

According to the Employment and Social Development Canada (ESDC), in fiscal year 2024–2025, the department conducted 1,435 employer compliance inspections, finding 10 per cent of employers non-compliant. During the same period, penalties more than doubled from $2.07 million to $4.88 million, and 36 employers were banned from the program—a threefold increase from the previous year.

In one of the most significant enforcement actions to date, a fish and seafood sector employer was fined $1 million and banned for 10 years for failing to provide fair wages and safe working conditions, violating labor laws, and maintaining an abusive workplace environment. The ESDC said it was the largest penalty ever issued under the program.

Other notable cases include a $212,000 fine and two-year ban for an agriculture employer that failed to meet working condition standards, a $161,000 fine and five-year ban for a residential construction employer that violated wage and labor laws, and a $150,000 fine against a long-haul trucking company that was found not to be operating a legitimate business.

The ESDC stated that “Canadians are always first in line. To be clear, the Temporary Foreign Worker Program is a last resort option for employers who cannot find qualified Canadians and permanent residents to fill job vacancies.”

The department emphasized that employers must demonstrate genuine efforts to recruit Canadian workers before turning to the TFW Program and must continue those efforts while applications are pending. Temporary foreign workers represent about 1% of the national workforce, serving key industries such as agriculture, food processing, construction, and healthcare.

In September 2024, the government introduced measures to reduce reliance on temporary foreign labor, leading to a 50 per cent drop in overall applications to the program and a 70 per cent decline in the low-wage stream.

ESDC reiterated that employers must provide safe, healthy, and dignified working conditions, warning that violations can result in penalties of up to $1 million per year and temporary or permanent bans.

Minister of Jobs and Families Patty Hajdu said, “Building a stronger Canada means protecting those who work tirelessly, day in and day out. Workers in Canada deserve safe workplaces where their rights are protected from bad actors.”

Hajdu added, “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.”

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