The Government of Canada continues to reinforce its stance on strict compliance under the Temporary Foreign Worker (TFW) Program, reminding employers that hiring foreign nationals is a privilege—not an entitlement. Recent enforcement actions demonstrate that violations can result in severe financial penalties, public disclosure, and loss of program eligibility.
A Recent Case in Toronto Highlights the Consequences
According to Employment and Social Development Canada (ESDC), a Toronto employer was fined $111,000 after an investigation found breaches of the TFW Program. The case involved GeethaEzhil Inc., a company that owns a Canadian Tire franchise in Etobicoke, Ontario.
ESDC determined that the employer had violated two major program conditions:
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The wages, working conditions, or job duties did not match what was outlined in the offers of employment submitted to the government.
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Workers were assigned to different roles than what was approved under their Labour Market Impact Assessment (LMIA).
As a result, the company was listed as “ineligible” to hire temporary foreign workers in the federal government’s public employer compliance database, pending payment of the fine.
This case follows a series of enforcement actions across the country where ESDC has imposed penalties on employers and recruitment agencies for violating labour standards and charging illegal recruitment fees to foreign workers.
Understanding Employer Obligations Under the TFW Program
Canada’s TFW Program is administered jointly by ESDC and Immigration, Refugees and Citizenship Canada (IRCC). Employers must meet ongoing conditions to maintain compliance, including:
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Paying the correct wages as stated in the approved LMIA and job offer.
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Providing the same working conditions and job duties as approved by ESDC.
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Keeping accurate employment records for a minimum of six years.
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Cooperating with inspections and audits, including timely submission of documents requested under section 209 of the Immigration and Refugee Protection Regulations (IRPR).
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Not charging recruitment or placement fees to workers, either directly or through third parties.
Employers found non-compliant may face administrative monetary penalties, temporary or permanent ineligibility to participate in the program, and public disclosure of their violations.
Triggers for Employer Inspections
ESDC conducts both random and targeted inspections, as well as investigations prompted by:
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Worker complaints,
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Referrals from other government agencies, or
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Applications for open work permits for vulnerable workers, which may trigger employer compliance reviews.
In the Etobicoke case, the investigation began after two TFWs reported mistreatment and underpayment. One of them later qualified for an open work permit for vulnerable workers, a program that protects foreign workers facing abuse or risk of abuse from their employer.
Protecting Foreign Workers, Preserving Employer Trust
Canada’s TFW Program aims to address labour shortages while ensuring the protection of foreign workers’ rights. Employers must demonstrate that hiring a temporary foreign worker does not negatively impact the Canadian labour market. Compliance failures not only harm workers but also erode public trust in the integrity of Canada’s immigration system.
At Visaserve Immigration Law P.C., we assist employers in navigating the TFW Program’s complex compliance landscape. Our legal team helps businesses:
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Understand ESDC inspection procedures,
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Prepare for LMIA and post-approval audits,
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Review employment contracts and wage documentation, and
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Implement internal compliance frameworks that align with federal regulations.
Remaining compliant not only protects your business from penalties but also strengthens your reputation as a fair and lawful employer.
Need guidance on TFW Program compliance?
Contact Visaserve Immigration Law P.C. to ensure your employment practices meet all federal requirements under the Immigration and Refugee Protection Regulations (IRPR) and ESDC inspection standards.
