The Government of Canada announced that penalties for non-compliance under the Temporary Foreign Worker Program (TFWP) have more than doubled in 2025. According to Employment and Social Development Canada (ESDC), 36 employers have now been banned from the program, reflecting tougher enforcement of labour standards and worker protection rules.

The federal government stated that inspections have increased, focusing on wage violations, unsafe working conditions, and breaches of employment terms. Fines for serious violations can now exceed million, depending on the severity and frequency of infractions.

Impact on Small and Medium Businesses

Compliance Costs Rising: SMEs employing temporary foreign workers must strengthen HR systems and documentation practices to avoid penalties.

Operational Risks: Losing access to TFWP approvals can disrupt operations, especially in sectors like agriculture, hospitality, and construction.

Reputation and Trust: Compliance is now closely tied to business credibility and future eligibility for government programs.

Action Point: Businesses should conduct internal audits of employment contracts, payroll, and workplace safety standards to ensure full alignment with federal TFWP requirements.

This update aligns with Ottawa’s broader strategy to enhance labour market integrity and protect vulnerable workers amid ongoing labour shortages.

Source: Government of Canada – Employment and Social Development Canada