TORONTO (Diya TV) — Canada is tightening rules for employers under the Temporary Foreign Worker (TFW) Program as the federal government seeks to strengthen the economy and protect workers. The move comes after a surge in inspections revealed non-compliance and serious workplace violations.
The Employment and Social Development Canada (ESDC) conducted 1,435 employer compliance inspections in fiscal year 2024–2025. Ten percent of employers failed to meet program standards. Penalties more than doubled from $2 million to nearly $4.9 million. Thirty-six employers were banned from the program, a threefold increase from the previous year.
The strict enforcement aims to prevent employers from exploiting the system. Many of those penalized were reportedly from the South Asian community, who allegedly tried to bypass regulations by paying agents and employers large sums.
In September, an employer in the fish and seafood sector received a $1 million fine and a 10-year ban from the program. The penalties were issued for failing to provide proper wages and working conditions, violating federal and provincial labor laws, and creating an abusive workplace. This is the largest penalty in the history of the TFW Program, signaling that mistreatment of workers will not be tolerated.
All non-compliant employers are now listed on a public-facing website managed by Immigration, Refugees and Citizenship Canada (IRCC). This transparency aims to hold companies accountable and discourage misuse of the program.
Other employers also faced significant penalties. One agricultural employer was fined $212,000 and banned for two years for poor working conditions and failing to provide required documentation. A residential construction company received a $161,000 fine and a five-year ban for wage and labor law violations. A long-haul trucking company was fined $150,000 for not genuinely operating a business and failing to provide documents to inspectors.
ESDC emphasizes that Canadian workers are always prioritized. The TFW Program is intended only as a last resort when qualified Canadians and permanent residents are unavailable. Employers must show genuine recruitment efforts within Canada before using the program.
Workers under the TFW Program make up about 1% of Canada’s workforce. They play critical roles in agriculture, food processing, construction, and healthcare. The government has introduced measures to reduce reliance on temporary foreign workers. In September 2024, applications to the program fell by 50%, with low-wage stream applications dropping by 70%.
Employers must provide safe, healthy, and dignified working conditions. The government’s compliance inspections verify adherence to program rules. Employers who fail inspections can face administrative monetary penalties of up to $1 million per year and temporary or permanent bans.
Minister Patty Hajdu, responsible for Jobs and Families and the Federal Economic Development Agency for Northern Ontario, highlighted the importance of enforcement. “Building a stronger Canada means protecting those who work tirelessly, day in and day out,” she said. “Workers in Canada deserve safe workplaces where their rights are protected from bad actors. The TFW Program is a last-resort measure for businesses. Its misuse will never be permitted.”
