'Bad actors are taking advantage of people and compromising the program,' said employment minister
The Temporary Foreign Worker (TFW) program, designed as an extraordinary measure to tackle labour shortages when qualified Canadian workers are unavailable, is facing stricter enforcement measures, said a news release from Employment and Social Development Canada.
Randy Boissonnault – Minister of Employment, Workforce Development and Official Languages – announced new actions to avoid misuse of the program to bypass hiring skilled Canadian workers as a part of the federal government’s broader effort to protect the integrity of Canada’s labour market.
“I’ve been clear over the last year; abuse and misuse of the TFW program must end,” said Boissonnault. “The health and safety of temporary foreign workers in Canada is a responsibility I take very seriously.”
In a meeting with representatives from Canada’s biggest business associations, Boissonnault reiterated that the program should be used appropriately. Employers should maintain a healthy and safe workplace for temporary foreign workers and treat them with dignity and respect, he emphasized. The federal government would intensify its efforts to eliminate misuse and fraud, he warned.
Boissonnault outlined actions being implemented to reduce reliance on temporary foreign workers. One was the enforcement of the 20-percent cap policy on temporary foreign workers, including those in the “dual intent sub-stream”, which allowed foreign workers to apply for permanent residency. Employers using this stream would face stricter guidelines.
The minister also announced that labour market impact assessments (LMIAs) would undergo more rigorous oversight, particularly in high-risk areas, during both the application process and subsequent inspections. A potential move would be to increase LMIA fees to fund additional integrity and processing activities.
Boissonnault told business associations that he was contemplating refusing to process applications under the low wage stream. If implemented, this would prevent employers in certain regions and industries from using the program.
The government’s efforts
Future regulatory changes in consideration include new criteria for employer eligibility. These could include factors such as a minimum number of years in business or a history of layoffs to ensure that only credible employers could access the program.
The government would also be working to modernize the program, including the new foreign labour stream for agriculture and fish and seafood processing announced in Budget 2022, the news release said.
The actions recently announced built upon previous reforms that led to significant improvements in the program, including improvements in the quality, timeliness, and reach of employer inspections and a 36 percent increase in fines issued in the 2023–24 fiscal year compared with the previous year, the news release added.
Noncompliance
“Bad actors are taking advantage of people and compromising the program for legitimate businesses,” said Boissonnault. “We are putting more reforms in place to stop misuse and fraud from entering the Temporary Foreign Worker Program.”
Employers failing to comply with the program’s conditions could face penalties ranging from warning letters to administrative monetary penalties amounting to $500–$100,000 for each violation, with a maximum of $1 million per year.
Another possible consequence is time-limited bans. Serious violations could even mean a permanent ban. A government website publicly lists non-compliant employers.
