Compliance monetary penalties double under the Temporary Foreign Worker Program

On July 8, 2026, the federal government released the latest compliance results for the Temporary Foreign Worker Program (TFWP), reinforcing the importance of employer compliance. 

 

As previously reported in the National Payroll Institute's October 2025 and April 2026 Late Breaking Payroll News, employers that fail to meet TFWP requirements may face administrative monetary penalties (AMPs), inspections, and temporary or permanent bans from the Program. 

 

Between April 1, 2025, and March 31, 2026, Employment and Social Development Canada (ESDC): 

 

  • completed 1,488 compliance inspections;  
  • found 12 per cent of employers to be non-compliant;  
  • issued over $10.2 million in penalties, more than double the previous year's total; and  
  • banned 30 employers from participating in the program. 

 

Employers should continue to comply with all TFWP requirements, including the enhanced recruitment requirements for low-wage Labour Market Impact Assessment (LMIA) applications, and maintain supporting documentation in the event of a government compliance inspection. 


 

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