Penalties for employers found violating rules under Canada’s Temporary Foreign Worker (TFW) Program more than doubled during a recent six-month span, according to inspection data from Employment and Social Development Canada.
Between April 1 and Sept. 30, 2024, the department conducted 649 inspections, with 11 per cent deemed non-compliant. As a result, officials issued $2.1 million in administrative monetary penalties, compared to $1 million in the same period in 2023, and banned 20 employers from the program.
Employers in the seafood product preparation, janitorial maintenance and farming sectors received the highest fines. One in the seafood industry was fined $365,750 and banned for two years for failing to keep records, violating hiring laws, underpaying foreign workers and not ensuring a workplace free of abuse, officials said. Another, in janitorial maintenance, was fined $124,000 and banned for five years for improper pay and working conditions. A farming operation was fined $75,000 and given a five-year ban after missing scheduled inspections and not proving its business legitimacy, according to the inspection data.
“Workers in Canada deserve and expect to feel safe and protected in the workplace,” said Steven MacKinnon, minister of Employment, Workforce Development and Labour. “Employers must follow the rules, and we will continue to take decisive action to protect workers’ rights and well-being while growing our economy.”
Employment and Social Development Canada said it has tightened its guidelines for administrative monetary penalties, which went up from $15,000 to $45,000 last year for employers who do not provide documents or who claim an illicit business. This fall, the same penalties began applying to employers who refuse to meet with inspectors or fail to attend inspections. Employers not actively engaged in business operations now face $15,000 per negatively affected temporary foreign worker, rather than a total fine of $15,000 for non-compliance.
Officials added they have increased oversight by eliminating attestations from accountants or lawyers as proof of business legitimacy and by using ministerial instructions more often to suspend positive Labour Market Impact Assessments in cases of suspected program misuse.
The TFW Program allows employers to fill labour shortages when they cannot find qualified Canadians, but the government said it will continue working with provinces, territories and stakeholders to ensure employers respect the program’s conditions and that foreign workers’ health and safety remain a priority.
