Canada's Temporary Foreign Worker Program: Fewer Hires, Increased Penalties

According to the Government of Canada, the Temporary Foreign Worker (TFW) Program is a last resort option for employers who cannot find qualified Canadians or permanent residents to fill job vacancies. Canadian workers are always first in line.

To protect both Canadian and foreign workers, there are strict rules in place — and it’s important for any applicant to make sure that the agency or employer they’re working with follows these regulations.

Here’s how you can determine if your potential employment is compliant with the TFW Program:

Verify That the Employer Is Legitimate and Approved

All employers who hire temporary foreign workers must:

• Prove that they made genuine attempts to recruit Canadians first.
• Continue recruiting within Canada even while their application is pending.
• Receive a valid Labour Market Impact Assessment (LMIA) before hiring.

You can check whether an employer has been approved or banned by visiting the Government of Canada’s public list of non-compliant employers managed by Immigration, Refugees and Citizenship Canada (IRCC).

If an employer appears on this list, they are not allowed to hire temporary foreign workers.

Review the Working Conditions Offered

Employers under the TFW Program are legally required to provide:

• Safe, healthy, and dignified working conditions
• Proper wages that meet federal and provincial labour laws
• Accurate documentation of employment terms

Failure to meet these standards can lead to serious penalties — including fines of up to $1 million per year and temporary or permanent bans from the program.

Understand How Compliance Is Enforced

In 2024–2025, Employment and Social Development Canada (ESDC) conducted 1,435 compliance inspections across Canada.

• 10% of inspected employers were found non-compliant.
• Penalties more than doubled from the previous year — from $2 million to nearly $4.9 million.
• 36 employers were banned from the program.

Recent examples of non-compliance include employers who failed to pay proper wages, provide adequate housing, or comply with labour laws. The government has made it clear: any mistreatment of workers or misuse of the TFW Program will not be tolerated.

Report Unsafe or Abusive Conditions

If you suspect a workplace or agency is violating program rules, you can confidentially report it to Service Canada.
All reports are protected under Canada’s privacy laws — you do not need to provide your name, and your employer will never know who made the report.

You can report abuse or unsafe conditions:

• Online: Report abuse form (Government of Canada)
• By phone: 1-866-602-9448
  • Available 24/7 to leave a voicemail
  • Live agents available in over 200 languages, Monday to Friday from 6:30 a.m. to 8:00 p.m. ET

5. Be Cautious When Working With Agencies

If you are applying through a recruitment agency, ensure that the agency:

• Works directly with verified Canadian employers
• Can provide proof of the employer’s LMIA approval
• Does not charge you illegal recruitment or placement fees

Agencies that cannot show valid documentation or make vague promises about “guaranteed jobs” are red flags.

Final Word

The Government of Canada continues to strengthen the integrity of the Temporary Foreign Worker Program to protect workers and reduce employer misuse.

As an applicant, you have the right to safe, fair, and lawful employment. Always verify your employer’s compliance, know your rights, and report any suspicious activity.

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