Canadian employers who hire temporary foreign workers are operating under real enforcement pressure right now, and the numbers back that up. Employment and Social Development Canada completed nearly 1,500 compliance inspections in the fiscal year ending March 31, 2026, and roughly one in eight employers inspected were found non-compliant. Penalties issued to those employers topped ten million dollars, more than double the prior year’s total, and thirty employers were banned from the program entirely.
The obligations at the center of these inspections apply whether an employer hired through the LMIA-based Temporary Foreign Worker Program or the LMIA-exempt International Mobility Program. Either way, an employer who brings in a foreign worker is bound to the specific conditions attached to that hire, including paying the wage committed to in the job offer or LMIA application, assigning the worker to the actual role and duties described in that offer, and maintaining a workplace free of abuse. These obligations do not end when the worker’s assignment does. Employers are required to keep records demonstrating compliance for six years from the worker’s first day of employment, and ESDC retains authority to inspect during that entire window.
Recent enforcement actions illustrate how varied the underlying violations can be. One employer was fined and banned for placing a worker in a different occupation than the one described in the job offer and for submitting inaccurate information in the LMIA application. Another was penalized for failing to provide the working conditions and wages it had committed to, alongside broader labour law violations. A third faced consequences largely for refusing to cooperate with inspectors and provide requested documentation, which is treated as its own separate violation on top of whatever the underlying compliance issue turns out to be.
Inspections themselves can be more involved than many employers expect. ESDC officers have the authority to enter a workplace, review payroll and recruitment records, interview both management and workers, and conduct a physical walkthrough of the worksite. Employers are legally required to cooperate, and refusing or obstructing an inspection carries its own penalty separate from any findings about the underlying hire. Recent rule changes have also raised the bar before an employer ever gets to hiring stage, including a longer required recruitment and advertising period for Low-Wage stream positions.
For employers currently relying on foreign workers, or planning to bring workers in, the practical takeaway is that documentation discipline matters as much as the initial hiring decision. A job offer and LMIA application that accurately reflect the actual role, wage, and working conditions, backed by records an employer can readily produce years later, is the strongest protection against becoming one of the enforcement statistics in next year’s report.
Frequently Asked Questions
How much have compliance penalties increased?
Penalties issued to non-compliant employers exceeded ten million dollars in the fiscal year ending March 31, 2026, more than double the roughly 4.5 million dollars issued the year before.
Does this apply to LMIA-exempt hires too, or only LMIA-based ones?
Both. Employers using the LMIA-exempt International Mobility Program are bound by their own set of compliance conditions under the immigration regulations, separate from but similar to the LMIA-based Temporary Foreign Worker Program.
How long can ESDC investigate a past hire?
Employers must maintain compliance records for six years starting from the worker’s first day of employment, and ESDC retains inspection authority throughout that period.
What happens if an employer refuses to cooperate with an inspection?
Refusing or obstructing an inspection is treated as its own separate violation, carrying additional penalties on top of anything found regarding the underlying compliance issue.
What are inspectors typically looking for?
Common focus areas include payroll and time records, whether the worker’s actual duties match the job offer, wages paid against the committed amount, and whether the workplace meets health, safety, and anti-abuse standards.
If you are hiring or currently employ temporary foreign workers in Canada and want to confirm your compliance obligations, our attorneys are available to help.
If you or your family members have questions about how these immigration matters may affect you, please do not hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by emailing info@visaserve.com or by visiting our website at www.visaserve.com for more information.