The federal government issued more than $6.8 million in penalties to employers violating the rules of the temporary foreign worker program from January to September 2025, already surpassing the total from 2024’s record-setting year of fines, according to data from Immigration, Refugee and Citizenship Canada.
That is about a 65 per cent increase from the $4.1 million in penalties handed out last year.
From January to the end of September this year, Ottawa levied 214 fines against non-compliant companies, averaging $31,971 per decision, according to the Star’s analysis of the data. That’s up from 155 fines last year, which averaged $26,776 — nearly double the 2023 average of $13,860.
In addition to fines, non-compliant companies can face temporary bans on hiring temporary foreign workers depending on the severity of violations, though permanent bans are rare.
So far this year, around 24 companies have been hit with temporary bans. Among the most severe cases, a shellfish processing company was fined $1 million and barred for 10 years after violating several requirements, including not putting “enough effort to make sure the workplace was free of” either physical abuse, sexual abuse, psychological abuse, financial abuse or reprisal.
A trucking company was fined $280,000 and handed a 10-year ban for violating requirements, including offering pay or working conditions that did not match those promised in the job offer, or providing a job different from what was listed.
Use of the temporary foreign worker program by Canadian businesses has surged in recent years, particularly after the COVID pandemic, which left many sectors grappling with significant labour shortages. It has only recently slowed down due to caps on hiring foreign workers implemented by the government last year.
Along with the increase, there have also been growing reports of worker exploitation and abuse.
A Toronto Star investigation into the program’s application process found that in January 2022, the government directed staff to implement “streamlining measures” when evaluating the legitimacy of applications by employers seeking temporary foreign workers. Routine checks meant to ensure the system is not abused by unscrupulous employers were suspended in an effort to process applications faster.
Employment and Social Development Canada did not respond to the Star’s questions in time for publication.
The government conducts inspections on employers participating in programs that use closed work permits, which bind employees to a single employer. Both the temporary foreign worker program (under Employment and Social Development Canada), and parts of the international mobility program (run by Immigration) use closed work permits.
There are three triggers for an inspection listed by the Immigration Department: known past non-compliance, random selection and a reason to suspect including an allegation or complaint. Employers are given notice before the inspection takes place.
In January, ESDC reported conducting 649 inspections between April and September last year, finding about 89 per cent of employers compliant. The inspections are a small fraction of the roughly 20,000 employers approved to hire temporary foreign workers during that period.
Critics and advocates have repeatedly called for temporary foreign workers to have permanent resident status or, at minimum, open work permits, which would allow them to leave abusive employers without fear of losing their status in the country.
