New Measures to Combat Fraud in Canada’s Temporary Foreign Worker Program

On August 6, 2024, Canada’s Minister of Employment, Workforce Development, and Official Languages, Randy Boissonnault, announced new steps to fight fraud in the Temporary Foreign Worker (TFW) Program. The TFW Program issues Labour Market Impact Assessment (LMIA) opinions, and these changes aim to prevent misuse and fraud in the program.

Key Actions and Measures

1. 20% Cap Enforcement
• The government is strictly enforcing a rule that limits the use of Temporary Foreign Workers to 20% of an employer’s workforce for low-wage positions. This cap ensures that Canadian workers are given priority for job opportunities. Employers applying for dual LMIAs, which support both work permits and permanent residence applications for TFWs, will also be subject to this cap.
  
  
2. Stricter Oversight
• Enhanced scrutiny will be applied in high-risk areas for LMIAs and employer inspections. This means closer monitoring of employers with a history of non-compliance or those operating in sectors known for higher risks of abuse. The goal is to prevent fraudulent practices and ensure that the TFW Program is used appropriately.
  
  
3. LMIA Fee Increases
• The government is considering increasing LMIA fees to help fund more thorough inspections and verification processes. Higher fees would support activities aimed at strengthening the program’s overall integrity.
  
  
4. Employer Eligibility Criteria
• New rules may be introduced, requiring employers to meet specific criteria, such as a minimum number of years in operation and a clear layoff history. These changes aim to ensure that only reputable and established employers can participate in the TFW Program, reducing the risk of fraud.
  
  
5. New Foreign Labour Stream
• The TFW Program will be updated with a new labor stream focused on Agriculture and Fish & Seafood Processing. This stream is designed to address labor shortages in these essential sectors while maintaining strict standards to prevent exploitation.
  
  
6. Increased Penalties
• There has been a 36% increase in fines for employers who do not comply with TFW Program rules in 2023–2024 compared to the previous year. Penalties can range from warning letters to fines up to $1 million annually and even bans from the program. This increase is part of the government’s strategy to deter fraudulent activities and enforce program regulations.
  
  
7. Public Reporting and Awareness
• The government continues to work with international organizations and run public campaigns to raise awareness about fraud. These efforts aim to educate both employers and workers about their rights, responsibilities, and the serious consequences of engaging in fraudulent activities.
  
  

The government has stated that these measures are “being implemented,” though the exact dates for these changes have not yet been specified.

Conclusion

These new measures are a significant step forward in protecting the integrity of Canada’s Temporary Foreign Worker Program. By enforcing stricter rules, increasing oversight, and raising awareness, the government is working to ensure that the program is used correctly and fairly, benefiting both workers and employers.