New Fines Proposed for Non-Compliance with the Temporary Foreign Worker Program

The Canadian government has proposed mechanisms to begin levying fines against employers that violate key rules of the Temporary Foreign Worker Program (TFWP). Beginning in early 2015, fines could be imposed on employers that make false declarations about their use of foreign workers or that replace Canadian workers with foreign personnel. The amounts of the proposed fines have yet to be announced. 

Currently, employers who breach the terms of any Labor Market Opinion can be barred from hiring foreign workers for up to two years and also can be included on a government list of non-compliant companies. The proposal would add fines as an additional possible sanction. 

Increased compliance reviews and worksite inspections are expected this year, pursuant to regulations published in January that expand the enforcement powers of the compliance wing of the country’s labor authority. Plans for enhanced enforcement follow public outcry over perceived abuses of the TFWP, including allegations of companies using the program to hire foreign nationals at lower wages and widespread displacement of Canadian workers. 

What This Means for Employers 

Amidst increased enforcement, employers should verify compliance with all relevant information included in each foreign national’s work permit application and ensure they have mechanisms in place to avoid hiring foreign nationals to replace Canadian employees. 

How Fragomen Can Assist 

Fragomen is available to audit Canadian employers’ current personnel and assess compliance with the conditions of each foreign national’s work permit application and compliance with current TFWP obligations. 

This alert is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

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