The federal government issued more than $4.1 million in penalties to employers violating the rules of the temporary foreign worker program in 2024, according to data from Immigration, Refugee and Citizenship Canada. This is a 55 per cent increase from the $2.67 million handed out in 2023.
Ottawa levied 154 fines against non-compliant companies over the last calendar year, averaging $26,917 per decision, according to the Star’s analysis of the data — almost double the $13,917 average in 2023.
Use of the temporary foreign worker program by Canadian businesses has surged in recent years, particularly in low-wage sectors like construction and hospitality. Along with the increase, there have also been growing allegations 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.
“Workers in Canada deserve and expect to feel safe and protected in the workplace. That’s why we’re taking steps to further protect temporary foreign workers and hold bad actors accountable,” said Labour Minister Steven MacKinnon in a statement last week.
From April to September, Employment and Social Development Canada (ESDC) — responsible for processing applications for temporary foreign workers — said it conducted 649 employer compliance inspections. Of these, 11 per cent were found to be non-compliant.
Inspections in this six month period also resulted in 20 employers being banned from the temporary foreign worker program, a fivefold increase compared to the same time the previous year, ESDC said.
“Eleven per cent — one in 10 companies misusing the program — is extremely high,” said Catherine Connelly, a professor at McMaster University’s DeGroote School of Business, and an expert on the temporary foreign worker program.
The government’s data underscores the need for stronger oversight of the program and for more investigations and greater deterrents than current fines, Connelly says, noting that several employers remain listed as having an “unpaid monetary penalty.”
The number of violators, Connelly says, is likely to be much higher.
“You can’t just investigate a few hundred companies when there are tens of thousands using this program,” she said.
“It’s just a drop in the bucket — and they need a bigger bucket.”
ESDC did not respond to inquiries on whether it plans to increase inspections amid rising penalties by the time of 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 ESDC), and parts of the international mobility program (run by IRCC), use closed work permits.
There are three triggers for an inspection listed by IRCC: 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 addition to fines, non-compliant companies can face temporary bans from hiring temporary foreign workers depending on the severity of violations, though permanent bans are rare.
In 2024, an employer in the seafood product preparation and packaging industry was fined $365,750 and banned from the program for two years after violating several requirements, including “non-compliance with hiring and recruiting laws, not compensating foreign workers properly and not providing a workplace free of abuse,” ESDC said.
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.
Chris Ramsaroop, an activist with Justicia for Migrant Workers, said without permanent status, the threat of deportation still hangs over any worker who complains about abusive conditions, making workers vulnerable and hostage to their employers’ demands.
“These fines are reactive, not proactive,” Ramsaroop said. “They’re not addressing what the core issues are to ensure that workers have labour protections.”
