In the news: $4.1 million fines for violations of Canada’s temporary foreign worker program are a ‘drop in the bucket’

January 22, 2025 ·

Contributed by: Ghada Alsharif, Toronto Star Immigration and Work Reporter

A foreign hospitality worker assists a customer at the front desk.

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 percent 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.

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.

“11 per cent — 1 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.”

Read the full article in the Toronto Star.