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TL;DR
Employment and Social Development Canada completed 1,488 Temporary Foreign Worker Program compliance inspections for the fiscal year ending March 31, 2026, finding 12% of employers non-compliant, up from 10% the prior year.
Monetary penalties exceeded $10.2 million, more than double the previous year's total.
Ottawa banned 30 employers from the program and named violations in trucking, consulting, and food services.
Tighter rules introduced in September 2024 have cut overall program applications by 50% and low-wage stream applications by 70%.
Workers can report suspected abuse through Service Canada's confidential tip line and online platform.
Employment and Social Development Canada (ESDC) said Thursday it issued more than $10.2 million in penalties against employers who violated the Temporary Foreign Worker Program (TFW Program) during the fiscal year ending March 31, 2026, more than double the $4.88 million levied in the previous period.
The department completed 1,488 compliance inspections and found 12% of employers non-compliant, up from 10% in fiscal 2024–2025. It also banned 30 employers from using the program.
Federal penalties have increased over the past two fiscal years. In the prior fiscal year, ESDC conducted 1,435 inspections and banned 36 employers, which the department described at the time as a threefold increase. The penalty total rose from $2.07 million two years ago to $4.88 million last year and now past $10 million.
Patty Hajdu, Minister of Jobs and Families, said the government is "putting workers at the forefront and safeguarding their well-being" by strengthening inspection practices. She called the TFW Program "a last resort measure for businesses" and said "its misuse will never be permitted."
What were employers penalized for
ESDC highlighted three cases in Thursday's announcement:
A long-haul trucking employer in Manitoba was fined $240,000 and banned for five years for failing to provide proper working conditions, violating federal and provincial labour laws, and withholding documentation from inspectors.
A management, scientific, and technical consulting firm in Quebec was fined $122,000 and banned for five years for employing a worker in a different occupation than the one described in the job offer, providing inaccurate information in its Labour Market Impact Assessment (LMIA) application, and failing to make reasonable efforts to keep the workplace free of abuse.
A restaurant in Nova Scotia was fined $126,000 and banned for two years for failing to provide proper wages and working conditions, violating labour laws, and failing to protect workers from workplace abuse.
In September 2025, a fish and seafood employer received a $1 million fine and a 10-year ban, which ESDC described as its largest penalty to date.
The compliance framework can impose administrative monetary penalties of as much as $1 million a year per employer, along with temporary or permanent bans. Immigration, Refugees and Citizenship Canada (IRCC) publishes a list of non-compliant employers.
The enforcement results follow policy changes introduced in September 2024
Employers in the low-wage stream must now advertise positions for eight consecutive weeks before submitting an LMIA application, double the previous four-week requirement. They must also show they made adequate efforts to recruit youth.
ESDC said it has strengthened coordination between Job Bank and the TFW Program so processing officers have more current data on domestic job seekers, including Employment Insurance recipients. The LMIA assessment process now applies stricter review to what the department calls high-risk sectors: retail, food services, accommodation, and trucking.
Those changes have reduced demand for the program. The October 2025 federal release said applications fell 50% overall and 70% in the low-wage stream following the September 2024 tightening.
The department said it uses advanced analytics, tips, and inspections at the LMIA stage to identify higher-risk misuse and focus enforcement resources accordingly. ESDC works with IRCC, the Canada Border Services Agency, and the Royal Canadian Mounted Police to share information on possible fraudulent or criminal activity.
The youth employment context
Ottawa's emphasis on youth recruitment requirements connects to broader labour-market pressures. A September 2025 economic note from Desjardins said Canada's youth unemployment rate had spiked, especially among the youngest workers. The note said part of the increase came from weak economic conditions and part from an increase in young temporary residents in the years since the pandemic.
The federal government said temporary foreign workers make up about 1% of Canada's labour force and account for under a tenth of the country's non-permanent residents. Its stated approach is to direct the program toward specific strategic sectors and regions rather than allowing broad use.
How do you report employer misconduct
Service Canada runs a confidential hotline and online reporting platform for potential wrongdoing (1-866-602-9448). The line is open 24 hours a day, seven days a week, with live agents in more than 200 languages from Monday to Friday, 6:30 a.m. to 8:00 p.m. Eastern time.
What this means for you
If you hold a work permit tied to a specific employer, the conditions on your LMIA-backed job offer are legally binding on that employer. They must pay the wages stated, employ you in the occupation described, and provide safe working conditions. If your actual job, pay, or working conditions differ from your offer letter, that may constitute a violation.
You can report suspected abuse anonymously through Service Canada's tip line without fear of losing your immigration status as a result of reporting. Allegations can also be submitted using the Foreign Worker Tip Line online form.
IRCC's public list of non-compliant employers is worth checking before accepting a job offer. If your employer has been banned or penalized, a new LMIA application from them will not be approved.
