Canada is increasing audits and penalties for employers hiring temporary foreign workers. Whether you're using the LMIA process or another stream under the Temporary Foreign Worker Program (TFWP), 2025 is shaping up to be a year of stricter compliance. Government fines have reached record levels, and bans are becoming more frequent.
In this article, we explain the new enforcement trends, outline employer obligations, and provide actionable steps to protect your business and workers. Stay compliant, avoid costly penalties, and prepare for upcoming audits with confidence.
The federal government is cracking down on non-compliant employers. In 2024 alone, more than $4.1 million in fines were issued under the Temporary Foreign Worker Program—a 55% increase over the previous year. At the same time, the number of companies banned from the program more than doubled.
Between April and September 2024, 649 employer inspections were completed. While 11% were officially found non-compliant, enforcement actions, including monetary penalties and program bans, affected a significantly larger portion. In that same period, 20 employers were banned and $2.1 million in fines were issued.
This data highlights how even small documentation errors, such as missing timesheets, unsigned contracts, or wage underpayment, can now result in serious consequences, including public blacklisting and multi-year bans.
Several policy changes and enforcement tools were introduced between late 2023 and 2025. These changes are shaping how inspections are conducted and what regulators prioritize.
These updates confirm a strategic shift from reactive enforcement to proactive risk-based targeting.
Employers hiring foreign workers under the TFWP, including both LMIA and LMIA-exempt streams, must meet legal obligations outlined in the Immigration and Refugee Protection Regulations (IRPR). These rules are designed to ensure that workers are treated fairly and that Canadian labour laws are respected.
Core responsibilities include:
Failing to meet these obligations can result in severe penalties. Employers may be fined up to $45,000 per violation, and in serious cases, banned from the program for up to five years.
Employers are also expected to:
Quebec employers now face the same federal scrutiny as the rest of Canada.
As of late 2024, national caps on low-wage temporary foreign workers apply in all provinces—including Quebec.
Employers must ensure that no more than 10% of their workforce in low-wage positions is made up of TFWs, unless they qualify for a temporary exemption in essential sectors like healthcare or food processing.
This ends a longstanding exemption and increases the risk of audit and rejection for employers operating in Montreal and other Quebec cities. In fact, due to high unemployment, a temporary freeze on low-wage applications was introduced in the Montreal region.
With the bar for compliance rising, Service Canada has flagged several common violations that lead to penalties:
Even if these issues are unintentional, they can still result in a finding of non-compliance. Employers may be publicly listed on IRCC’s non-compliant registry, damaging their reputation and future hiring prospects.
Inspections can be routine, complaint-driven, or triggered by inconsistencies in paperwork. Employers may receive a notice by email or mail requesting specific documents
. In some cases, an in-person or virtual audit will follow.
Inspectors can interview foreign workers, request payroll records, review employment contracts, and verify business operations. They are also allowed to assess workplace conditions and safety protocols.
The employer must comply within the deadline outlined in the audit notice. Delays or incomplete responses can trigger automatic findings of non-compliance.
Make sure to keep the following records for at least six years:
Organizing these documents in a centralized, secure folder (digital or physical) helps ensure fast compliance during inspections.
Staying informed is the first step to staying compliant. AskAïa regularly hosts free webinars on TFWP rules, inspections, and employer strategies. Follow us on LinkedIn to get alerts for upcoming sessions, legal updates, and practical tools designed for Canadian employers.
If you’re not sure whether your files would pass an audit, AskAïa’s digital tools can help you run internal audits and monitor your employer obligations under the TFWP.
By taking these steps, you’ll reduce your legal risk, protect your workforce, and strengthen your ability to hire foreign talent in the future.
Even reputable, well-resourced employers have faced penalties for preventable mistakes. The best defense is readiness. Book a free immigration compliance call with the experts on our team.