Employer Compliance & Penalties in Canada’s Temporary Foreign Worker Programs: What’s New in 2025

Introduction

In 2025, as Canada works to reduce temporary resident numbers and improve protections for foreign workers, the rules for employer compliance under the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP) are stricter than ever. New policies mean employers face steep penalties for non-compliance, and workers must know their rights.

At AshLaw, we track these changes closely. This article explains what’s changed, what employers must do, and what temporary foreign workers need to watch out for to protect themselves.

Table of Contents

1. What’s Changed in Employer Compliance (2025 Policy Updates)
2. Key Penalty & Inspection Trends
3. New LMIA & Wage Requirements for Employers
4. Impacts on Workers & Employers
5. What Employers Can Do to Stay Compliant
6. Worker Rights & What You Should Demand
7. How AshLaw Supports Employers & Workers
8. FAQ

1. What’s Changed in Employer Compliance (2025 Policy Updates)

• The government’s Temporary Workers Transition Binder (May 2025) includes tighter rules under both TFWP & IMP. 
• LMIA validity dropped from 12 months to 6 months in many cases. Employers must apply more often and maintain accuracy.
• For low-wage positions, employer caps and wage thresholds have been updated; wage must meet or exceed “prevailing wage” in many jurisdictions. 
• Open work permits for spouses of students or workers are now more restricted—only certain programs, professional/management or in-demand TEER occupations qualify; and duration remaining on principal work permit is required (minimum months left). 

2. Key Penalty & Inspection Trends

• Penalties for non-compliant employers in the TFWP have more than doubled in some areas. In ESDC’s compliance inspections from April-September 2024, approx $2.1 million in Administrative Monetary Penalties (AMPs) were issued—over double the amount from the same period in 2023. 
• 11% of inspected employers were found non-compliant in that period; some received bans from the program (temporary or longer-term). 
• Employers failing to provide specified wages, working conditions, or misrepresenting jobs are among the highest risk violations. 

3. New LMIA & Wage Requirements for Employers

• Low-wage positions have stricter requirements: employers must prove that wages are not below the prevailing wage, and must review wages annually. 
• Regions with unemployment over 6% may see moratoriums or refusals for low-wage LMIAs. 
• Employers must show recruitment efforts, and that the job offer is genuine (job duties, description, conditions must match what was submitted). Failing to do so risks LMIA refusals or future penalties. 

4. Impacts on Workers & Employers

• Employers risk: fines, bans, revocation of LMIAs, damage to reputation, potential invalidation of worker permits. 
• Workers risk: exploitation, wage underpayment, conditions worse than what was promised, less job security. Some workers may be misled about their rights.
• Processing uncertainties: Employers and workers may face delays or denials from IRCC/ESDC due to stricter document review and compliance checks. Recent reports suggest work permit applications are being rejected even when eligibility is met, due to employer-side non-compliance or discrepancies. 

5. What Employers Can Do to Stay Compliant

• Maintain accurate job descriptions, wages, working conditions matching the LMIA/job offer.
• Regular wage reviews; ensure pay reflects prevailing rates.
• Keep records and documentation for at least 6 years after work permits issued (pay, recruitment, contract, conditions). 
• Ensure workplace is free from abuse and that recruitment practices are fair and transparent.
• Provide workers with rights information in English/French; ensure health and safety protections.
• Conduct internal audits: check which workers are under employer-specific permits, ensure permit validity, avoid unauthorized changes.

6. Worker Rights & What You Should Demand

• Demand that your employer give you a written job offer that matches what was used for LMIA or permit application.
• Request clarified working conditions, pay, benefits. If they differ, you have right to redress.
• Make sure you’re aware of provincial employment laws, benefits, workplace safety protections.
• Do not pay recruiters or employer for LMIA fees; these are employer responsibilities.
• Record and keep copies of all communications, pay stubs, contracts.

7. How AshLaw Supports Employers & Workers

• For employers: compliance audits, LMIA reviews, advice on job offers, wage validation, penalty risk assessments.
• For workers: legal consultation in case of violations, help with complaints, ensuring conditions match what was promised, documentation support.
• Representations in appeals or oversight situations (penalties, bans).

Book a consultation with AshLaw to get proactive legal guidance whether you are employer or a worker.

8. FAQ

Q: What happens if my employer is found non-compliant?
A: They may face monetary penalties, a ban from hiring new temporary foreign workers, revocation of some permits, and public listing of non-compliance. 

Q: Can a worker refuse to work under worse conditions than promised?
A: Yes—if working conditions differ substantially, worker may pursue remedies through labour standards, immigration enforcement or legal advice.

Q: Are open work permit holders also protected under these employer compliance rules?
A: Some protections under IMP apply; but some compliance rules are more strictly applied to employer-specific TFWP permits.

Are you an employer worried about compliance or a worker uncertain about your rights?
Call Us: +1 (343) 401-9000
Mail Us: info@ashlaw.ca