The Government of Canada has intensified efforts to strengthen the Temporary Foreign Worker Program (TFWP) and ensure Canadian workers remain the country’s first hiring priority. Recent data from Employment and Social Development Canada (ESDC) shows a sharp decline in the program’s use and a corresponding rise in enforcement actions against non-compliant employers.
Between April 2024 and March 2025, applications to the Temporary Foreign Worker Program dropped by 50 percent, with an even sharper 70 percent fall in the low-wage stream. Officials say these results reflect deliberate policy adjustments aimed at reducing employer dependence on temporary foreign labor and promoting fair job access for Canadian citizens and permanent residents.
A Stronger Emphasis on Hiring Canadians First
Under the Temporary Foreign Worker Program, employers can only hire foreign nationals when qualified Canadians or permanent residents are unavailable. This rule has long been the program’s foundation, ensuring that local workers are given every opportunity before businesses seek help abroad.
Employers must prove that they made serious recruitment efforts within Canada before applying for a Labour Market Impact Assessment (LMIA). While their applications are under review, they must continue advertising open positions to Canadians.
Currently, foreign workers make up about 1 percent of the national workforce. However, their contributions are vital in critical industries such as agriculture, healthcare, construction, and food processing. These are sectors that often experience persistent labor shortages.
Read also: Canada raises Temporary Foreign Worker wages
Compliance and Penalties Reach Record Levels
ESDC conducted 1,435 compliance inspections during the 2024–2025 fiscal year, with 10 percent of employers found violating program conditions. Non-compliance ranged from unpaid wages to poor living conditions.
The government issued $4.88 million in administrative monetary penalties, more than double the previous year’s total of $2.06 million. Thirty-six employers were banned from participating in the program.
The most severe case involved a seafood processing company fined $1 million and banned for ten years for multiple violations, including failure to provide fair wages and safe housing. This marks the largest penalty ever recorded under the program.
| Year | Inspections Conducted | Penalties Issued | Total Fines | Employers Banned |
|---|---|---|---|---|
| 2023–2024 | 1,200 | 18 | $2,067,750 | 12 |
| 2024–2025 | 1,435 | 36 | $4,882,500 | 36 |
Examples of Violations Under the Temporary Foreign Worker Program
Recent enforcement actions show that the Temporary Foreign Worker Program (TFWP) is now under closer scrutiny than ever before. Authorities have made it clear that employers who fail to meet labor standards or provide safe working environments will face swift and severe consequences. The following cases highlight the range of violations uncovered during 2024–2025:
Agriculture Sector:
Inspectors discovered that one farm employer failed to provide proper housing and did not submit mandatory documentation during an inspection. Workers were housed in overcrowded quarters with poor ventilation and limited access to clean water. The employer was fined $212,000 and banned from the TFW Program for two years. This case underscores the importance of maintaining safe and humane living conditions for foreign agricultural workers, who play a vital role in Canada’s food supply chain.
Residential Construction Industry:
A construction company was fined $161,000 and banned for five years after it was found underpaying workers and violating both federal and provincial labor laws. The firm failed to meet minimum wage standards and ignored requirements for overtime pay. Investigators also discovered falsified timesheets and unregistered subcontractors. This case highlights the government’s determination to protect wage integrity across Canada’s growing construction sector.
Long-Haul Trucking:
One transport operator faced a $150,000 fine for running a fraudulent business setup to obtain work permits under false pretenses. The company could not prove that it conducted legitimate trucking operations and failed to produce required business and payroll records. Such misuse of the Temporary Foreign Worker Program undermines fair competition and damages the credibility of compliant employers.
Seafood Processing Industry:
The most serious case involved a seafood processing company that received a record $1 million fine and a 10-year ban from the program. The employer was found guilty of multiple violations including failing to pay proper wages, ignoring occupational safety laws, and allowing workplace harassment. This remains the largest penalty ever issued by Employment and Social Development Canada (ESDC). It demonstrates that any mistreatment of temporary foreign workers will lead to severe financial and operational consequences.
These cases reveal a consistent trend: Canada is enforcing its labor laws with increased precision and transparency.
Government’s Commitment to Worker Protection
The Minister of Jobs and Families, Patty Hajdu, emphasized the government’s zero-tolerance approach to exploitation within the Temporary Foreign Worker Program. She noted that every worker in Canada deserves safety and respect, regardless of their immigration status.
“Strengthening our inspection practices to weed out employers who misuse the program puts workers first,” Hajdu said. “The program is a last resort for businesses—not a shortcut to cheaper labor.”
ESDC works closely with Immigration, Refugees and Citizenship Canada (IRCC), Canada Border Services Agency (CBSA), and the Royal Canadian Mounted Police (RCMP) to identify fraud, criminal activity, and abuse. Through this collaboration, reports of unsafe working conditions are swiftly investigated.
New Channels for Reporting Abuse
To help enforce program integrity, Canada has expanded its confidential tip line and online reporting tools. Workers can now report unsafe or unfair treatment 24 hours a day, seven days a week, without revealing their identity.
Ways to Report Violations:
-
Online: Report abuse form
-
Phone: 1-866-602-9448 (voicemail available 24/7)
-
Live Assistance: Agents available Monday to Friday, 6:30 a.m.–8:00 p.m. ET, in over 200 languages.
Reports are fully confidential and protected under Canada’s privacy laws. Workers are encouraged to use these resources if they experience unsafe or unlawful work conditions.
A Renewed Focus on Key Sectors
While the Temporary Foreign Worker Program remains essential for addressing specific skill shortages, the government aims to focus its use on industries with verified labor gaps. Agriculture, healthcare, and food processing will continue to receive targeted support under new policy adjustments.
However, the message from Ottawa is clear; temporary foreign workers should not replace long-term solutions for workforce planning. Businesses are encouraged to invest in training, automation, and local recruitment to build sustainable labor capacity.
Building a Fairer Labor Market
The federal government’s 2025 labor market strategy centers on balance. This translates to protecting workers, ensuring fair employer competition, and maintaining productivity in essential sectors. The reduced use of the Temporary Foreign Worker Program demonstrates that employers are adapting to new recruitment realities.
By enforcing stricter rules, Canada aims to maintain trust in the system while ensuring that temporary workers are treated with dignity. The program remains a tool for addressing short-term gaps, not a long-term staffing solution.
What This Means for Employers and Workers
For employers, compliance is non-negotiable. Every violation carries serious financial and reputational consequences. The public listing of banned employers by IRCC adds a transparency layer that deters misuse.
For workers, the government’s stronger enforcement sends a clear message: your safety and rights come first. Whether through inspections, penalties, or public reporting, the Temporary Foreign Worker Program continues to evolve toward greater accountability.
Protect Your Immigration Pathway with Maple Crest Immigration Law
Whether you are an employer seeking to remain compliant with the Temporary Foreign Worker Program or a foreign worker pursuing fair employment in Canada, legal guidance can make all the difference. Maple Crest Immigration Law provides tailored support for LMIA applications, work permit renewals, and employer compliance reviews.
Avoid costly penalties and safeguard your workforce by consulting Maple Crest Immigration today. Our team ensures that every process meets Canadian labor and immigration standards—protecting both your business and your workers.
Contact Maple Crest Immigration Law to stay compliant and confident in your next application.
