Maple News reports that Ottawa’s ongoing crackdown on Canada’s Temporary Foreign Worker Program (TFWP) is coinciding with a rise in employer non-compliance. New data from Employment and Social Development Canada (ESDC) shows 1,488 compliance inspections were completed between April 1, 2025 and March 31, 2026, with 12% of employers found non-compliant — up from 10% in the 2024-2025 period.
According to an ESDC press release dated July 9, 2026, employer fines for TFWP violations totaled $10.2 million in the same period, more than doubling the $4.5 million recorded previously. Violations spanned areas such as workplace health and safety, employment standards, and the integrity of job offers.
ESDC reaffirmed the government’s stance that the TFWP should function as a last-resort option for employers who cannot find qualified Canadians or permanent residents to fill vacancies. All TFWP work permits and renewals must be authorized by ESDC, which issues a positive or neutral Labour Market Impact Assessment (LMIA) only after confirming that hiring a foreign worker will not negatively impact Canada’s domestic labour market.
This release follows a broader tightening of compliance measures introduced in 2024, which included setting an annual admissions target for temporary residents and a moratorium on low-wage LMIAs in regions with higher unemployment. Under the low-wage stream, jobs are defined as paying less than 120% of the regional median; as of now, that threshold is about $36 per hour in Alberta or Ontario.
Earlier this year, the government mandated that LMIAs show youth recruitment efforts and doubled the minimum advertising period from four weeks to eight weeks. Processing officers processing LMIAs are also instructed to apply more rigorous standards to applications in high-risk sectors.
For Canadian startups and employers relying on foreign talent, the message is clear: robust compliance, clear job offers, and transparent hiring practices are essential in today’s tighter labour market.