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New measures introduced to curb fraud in temporary foreign worker program

by HR Law Canada

Canada’s Temporary Foreign Worker (TFW) program, intended to fill job vacancies when qualified Canadians are unavailable, is undergoing reforms to combat misuse and ensure the protection of both Canadian and foreign workers, according to the federal government.

On Tuesday, the Honourable Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages, addressed representatives from major business associations, emphasizing the government’s commitment to preventing the TFW program from circumventing domestic hiring.

“The health and safety of temporary foreign workers in Canada is a responsibility I take very seriously,” Minister Boissonnault stated. “Bad actors are taking advantage of people and compromising the program for legitimate businesses. We are putting more reforms in place to stop misuse and fraud from entering the Temporary Foreign Worker Program.”

During the meeting, Minister Boissonnault detailed new measures aimed at reducing reliance on temporary foreign workers and increasing oversight. Key actions include:

  • Enforcing the 20 per cent cap policy for temporary foreign workers, particularly in the “dual intent sub-stream” where workers aim to apply for permanent residency.
  • Implementing stricter guidelines and more rigorous oversight in high-risk areas during Labour Market Impact Assessments (LMIAs) and inspections.
  • Considering increases in LMIA fees to fund additional integrity and processing activities.
  • Exploring future regulatory changes concerning employer eligibility, such as requiring a minimum number of years in business or evaluating the employer’s lay-off history.

Additionally, the minister mentioned the potential implementation of a refusal to process under the low-wage stream, which would restrict certain employers from using the TFW program. The government is also working on a new foreign labour stream for agriculture and fish and seafood processing, as announced in Budget 2022.

These actions build on previous reforms, which have already led to a 36 per cent increase in fines issued in the fiscal year 2023-2024 compared to the previous year. While most employers use the TFW program appropriately, ongoing efforts are essential to protect the Canadian labour market and hold violators accountable.

Minister Boissonnault assured that employer demand for the TFW program and the employment rate will be closely monitored, with additional tightening measures to be implemented as necessary. The meeting underscored the government’s dedication to maintaining a clear understanding among employers of their obligations under the program.

Quick facts highlight the TFW program’s responsiveness to labour market changes, the severe penalties for non-compliance, and the government’s collaboration with international organizations to raise public awareness about fraud prevention. Employers found violating TFW program conditions could face penalties ranging from warning letters to significant fines and bans from the program.

For workers and the public, ESDC administers a confidential tipline and online reporting tools to report misuse or abuse of the TFW program, offering services in over 200 languages.

The online reporting tool is available at https://www.canada.ca/en/employment-social-development/services/foreign-workers/report-abuse/tool.html

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