Non-compliant employers fined $2.1 million under TFW Program

Number of of employers banned from the program also increases

Non-compliant employers fined $2.1 million under TFW Program

Ottawa has increased the fines it imposed on employers that have been found non-compliant with the rules under the Temporary Foreign Worker (TFW) Program in the past fiscal year.

During that time, Employment and Social Development Canada (ESDC) completed 2,122 inspections under the program.

From April 1, 2023 to March 31, 2024, the federal government agency issued $2.1 million in Administrative Monetary Penalties (AMP) to non-compliant employers. 

That is up by approximately 36 per cent from the prior fiscal year, when $1.54 million in administrative monetary penalties were issued.

Also, ESDC banned a total of 12 employers from the program. That number is also up from seven in the previous fiscal year

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).

Non-compliant employers’ violations

Some examples of employers found in violation of the conditions of the TFW Program include:

  • An employer in the food service industry was fined $152,000 and given a two-year ban from the program for breaking federal, provincial or territorial laws in hiring and recruiting employees, as well as for improper worker pay and working conditions, among other violations.
  • An employer in the agriculture sector faced a $46,000 monetary penalty and a five-year ban from the program for failing to provide the inspector with proper documentation, as well as providing an inaccurate description of the job on the Labour Market Impact Assessment (LMIA) application.
  • An employer in the transport sector was penalized $135,000, along with a 10-year ban, for failing to provide an abuse-free environment and for failing to provide documents.

In May, Ottawa started limiting the use of the TFW Program to employers who absolutely cannot find Canadians who can fill job openings.

In May, the Senate called for an end to employer-specific work permits under the TFW Program, noting that the program is “not working well for employers or workers”. In their recommendations, however, the Senate failed to seize on the temporary status of the workers themselves, which is the root cause of their vulnerabilities, according to one expert.

Another report called for the federal government to grant migrant workers permanent residency upon their arrival in Canada.

Ottawa has invested $48 million over two years, starting in 2023–2024, to improve the Employer Compliance Regime under the TFW Program. These covers activities that include hiring more program inspectors and maintaining the worker protection tip line.

In addition, this funding has supported:

  • outreach sessions to employer organisations and consulates to help spread awareness of temporary foreign worker rights and employer obligations;
  • enhanced tools to provide user-friendly mechanisms to report potential misuse of the TFW Program; and
  • the implementation of a process to escalate concerns to appropriate stakeholders within 48 hours in situations where the health and safety of temporary foreign workers are at immediate risk.

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