Employment and Social Development Canada (ESDC) has announced that employer compliance enforcement under Canada’s Temporary Foreign Worker Program (TFWP) increased significantly during the 2025 to 2026 fiscal year. Between April 1, 2025, and March 31, 2026, more than $10.2 million in administrative monetary penalties were issued to employers found to be non-compliant with program requirements, more than double the $4.5 million issued during the previous fiscal year. During the same reporting period, 30 employers were banned from participating in the Temporary Foreign Worker Program. The Government of Canada states that these measures are intended to protect temporary foreign workers, strengthen employer accountability, and support the integrity of the program.
Increased Employer Compliance Enforcement
The Temporary Foreign Worker Program allows Canadian employers to hire foreign nationals to address labour shortages when qualified Canadian citizens or permanent residents are not available. In many cases, employers must first obtain a positive Labour Market Impact Assessment (LMIA) before hiring a temporary foreign worker.
According to the Government of Canada, 1,488 employer compliance inspections were completed during the 2025 to 2026 fiscal year. Approximately 12% of inspected employers were found to be non-compliant with one or more program requirements. As a result, more than $10.2 million in administrative monetary penalties were issued and 30 employers were banned from participating in the program.
Employer compliance inspections verify whether employers continue to meet the conditions of the Temporary Foreign Worker Program. Depending on the circumstances, inspections may examine wages, occupation, working conditions, recruitment activities where applicable, employer records, housing obligations in applicable program streams, and compliance with relevant federal and provincial laws. Employers may be selected for inspection based on risk factors or through random selection.
Consequences of Non-Compliance
Employers who fail to comply with Temporary Foreign Worker Program requirements may face a range of enforcement measures. Depending on the nature and seriousness of the violation, consequences may include warning letters, administrative monetary penalties of up to $100,000 per violation to a maximum of $1 million in one year, temporary or permanent bans from hiring temporary foreign workers, and publication of the employer’s name and details of the violations on the Government of Canada’s public list of non-compliant employers. Certain violations may also affect pending Labour Market Impact Assessment applications.
These enforcement measures are authorized under the Immigration and Refugee Protection Regulations and are intended to encourage compliance with the conditions employers accept when participating in the Temporary Foreign Worker Program.
Why This Matters
The latest enforcement figures demonstrate that the Government of Canada continues to increase oversight of employers participating in the Temporary Foreign Worker Program. Employers applying for or relying on Labour Market Impact Assessments should understand that compliance obligations continue throughout the employment relationship and are not limited to the initial application process.
For temporary foreign workers, the Government states that stronger compliance measures are intended to help protect workers’ rights and working conditions while promoting employer accountability. Although most inspected employers were found to comply with program requirements, the increased number of inspections and higher monetary penalties demonstrate the Government’s continued focus on enforcing compliance across the program.
Employers should regularly review their obligations under the Temporary Foreign Worker Program, maintain accurate records, and ensure they continue to meet all applicable program conditions throughout the period of employment.
Conclusion
The Government of Canada’s latest enforcement data indicates increased oversight of employers participating in the Temporary Foreign Worker Program. During the 2025 to 2026 fiscal year, employer inspections resulted in more than $10.2 million in administrative monetary penalties and 30 employer bans from the program. These enforcement measures reflect the Government’s ongoing efforts to strengthen employer compliance, protect temporary foreign workers, and maintain the integrity of Canada’s immigration system.
Employers using the Temporary Foreign Worker Program should remain familiar with their ongoing legal obligations, while temporary foreign workers should understand that compliance measures are in place to help safeguard program standards. Staying informed about employer responsibilities can help reduce the risk of non-compliance and support a fair and accountable immigration system.
Contact Jain Immigration Law
If you have questions about the Temporary Foreign Worker Program, Labour Market Impact Assessments, employer compliance, or other Canadian immigration matters, the experienced team at Jain Immigration Law is here to help.
Jain Immigration Law
Phone: +1 (416) 548-5533
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