A recent report by Employment and Social Development Canada (ESDC) revealed an increase in non-compliance among employers participating in Canada’s Temporary Foreign Worker Program (TFWP).

Between April 1, 2025, and March 31, 2026, 12% of employers were found to be non-compliant during 1,488 compliance inspections, up from the previous fiscal year’s 10%. This trend highlights the importance of upholding program regulations to protect both foreign workers and the domestic labor market.

ESDC reported that fines imposed on non-compliant employers more than doubled to $10.2 million during the same period. These penalties were issued for violations related to workplace health and safety, employment standards legislation, and job offer integrity.

The government’s commitment to ensuring the TFWP operates as a last resort option for employers facing labor shortages was emphasized. All work permits and renewals under the program require authorization from ESDC, which assesses the impact on Canada’s labor market before issuing a Labor Market Impact Assessment (LMIA).

Recent changes in compliance activities, including the introduction of annual admissions targets and restrictions on low-wage LMIA processing in certain regions, aim to strengthen program integrity. Employers hiring foreign workers must adhere to stringent recruitment and advertising requirements, especially in high-risk sectors.