Canada Finds More Employers Breaking Temporary Worker Rules

More Employers Failed TFWP Inspections

The Canadian government has reported that more employers are breaking the rules under the Temporary Foreign Worker Program (TFWP).

Between April 1, 2025, and March 31, 2026, officials completed 1,488 employer inspections. As a result, inspectors found 12% of employers to be non-compliant, compared to 10% in the previous year. This shows that rule violations have increased.

Employer Fines More Than Doubled

In addition to more rule violations, the total amount of fines also increased significantly.

The government collected $10.2 million in penalties, compared to $4.5 million during the previous year. The government fined employers because they failed to follow important program requirements.

Why Did the Government Fine Employers?

The government fined employers for several violations, including:

• Not following workplace health and safety rules
• Breaking employment standards
• Providing misleading or inaccurate job offers
• Failing to meet the conditions of the Temporary Foreign Worker Program

Canada Wants Employers to Use TFWP Only as a Last Option

Meanwhile, the Canadian government has once again stated that employers should only use the Temporary Foreign Worker Program when they cannot find qualified Canadian citizens or permanent residents to fill available jobs.

The government wants to protect job opportunities for people already living in Canada while allowing employers to hire foreign workers only when necessary.

Employers Must Obtain an LMIA Before Hiring

Before hiring a foreign worker through the TFWP, employers must obtain a positive or neutral Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC).

This assessment confirms that hiring a foreign worker will not negatively affect Canada’s local job market.

Canada Has Tightened the TFWP Rules

Since 2024, Canada has introduced stricter measures to improve the program.

For example:

• The government introduced annual limits for temporary residents.
• The government paused low-wage LMIA applications in areas with higher unemployment.
• Employers must now show that they tried to recruit young workers.
• The government increased the minimum job advertisement period from 4 weeks to 8 weeks.
• Officers now apply stricter reviews to LMIA applications in high-risk industries.

Which Jobs Fall Under the Low-Wage Stream?

Canada considers a job part of the low-wage stream if it pays less than 120% of the regional median wage.

For example, at the time of writing, jobs paying less than $36 per hour in Alberta or Ontario fall into this category.

Rural Employers Can Hire More Foreign Workers

On the other hand, Canada has expanded hiring opportunities for rural employers.

Employers in participating rural areas can now hire foreign workers for up to 15% of their workforce, compared to the previous limit of 10%. This change aims to help businesses facing labour shortages outside major cities.

Temporary Foreign Worker Admissions Have Dropped

Despite these changes, the number of Temporary Foreign Worker Program admissions has decreased sharply.

From January to April 2026, Canada admitted 14,655 temporary foreign workers, compared to 31,565 during the same period in 2024. This represents a drop of more than 50%.

For 2026, Canada plans to admit 60,000 workers through the Temporary Foreign Worker Program.

International Mobility Program Admissions Also Declined

Similarly, admissions under the International Mobility Program (IMP) have also fallen.

Between January and April 2026, Canada issued 43,705 IMP work permits, compared to 142,805 during the same period in 2024.

Unlike the TFWP, the IMP does not require an LMIA for most work permits because the program supports Canada’s cultural, economic, and international objectives.

Final Thoughts

Overall, Canada continues to strengthen oversight of the Temporary Foreign Worker Program by increasing inspections and taking stricter action against employers who break the rules. At the same time, the government has reduced temporary worker admissions while introducing targeted changes, such as expanding hiring opportunities for rural employers. Together, these measures aim to meet Canada’s labour needs while protecting job opportunities for Canadian workers.

Get in touch with SPS Global

Receive advice on any of your immigration questions. Get in touch with us, experienced immigration consultants from SPS Global. For additional information, contact support@spscanada.com (Canada) or support.amd@spscanada.com (Ahmedabad), or by phone at (1) 905-362-9393 (Canada) or +919586226232 (Ahmedabad).