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Employers violating temporary foreign worker program rules facing stiffer penalties from Ottawa

by HR News Canada
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The federal government has ramped up efforts to protect temporary foreign workers (TFWs), increasing penalties for non-compliant employers by 36% over the past fiscal year, it said.

Employment and Social Development Canada (ESDC) reported completing 2,122 inspections under the TFW Program in the last fiscal year, with 94% of employers found to be compliant. However, non-compliant employers faced significant consequences, with $2.1 million in Administrative Monetary Penalties (AMPs) issued, compared to $1.54 million the previous year.

Additionally, 12 employers were banned from the program, up from seven in the prior year.

“Any abuse of workers or misuse of the Program is not tolerated,” stated the department, highlighting its strict compliance regime and the financial penalties imposed on violators. Notably, employers found non-compliant are listed on a public-facing website managed by Immigration, Refugees and Citizenship Canada (IRCC).

Employers who are found to be non-compliant can receive a monetary penalty and/or a ban from hiring temporary workers.

Samples of violations

Examples of significant violations from April 2023 to March 2024 include:

  • A food service industry employer fined $152,000 and banned for two years for violations including improper worker pay and working conditions.
  • An agriculture sector employer faced a $46,000 penalty and a five-year ban for failing to provide proper documentation and misrepresenting job descriptions.
  • A transport sector employer was penalized $135,000 and given a 10-year ban for failing to provide an abuse-free environment and proper documentation.

From April 1, 2023, to March 31, 2024, ESDC assessed 8,426 tips, 57% of which resulted in an inspection being launched, informing an active inspection, or a referral being sent to an external partner.

Nearly $50 million in funding

In response to these issues, Ottawa has earmarked $48 million over two years to enhance the Employer Compliance Regime. This funding supports hiring more program inspectors, maintaining a worker protection tip line, and conducting outreach sessions to raise awareness of TFW rights and employer obligations.

The measures also include tools to report potential misuse of the TFW Program and a process to escalate concerns within 48 hours when the health and safety of workers are at immediate risk. The online reporting tool is available at https://www.canada.ca/en/employment-social-development/services/foreign-workers/report-abuse/tool.html

To further protect TFWs, ESDC administers a confidential tip line, available 24/7, with live agents offering services in over 200 languages from Monday to Friday, it said. This service helps workers anonymously report mistreatment or abuse and provides information on their rights.

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