Ottawa reports increased non-compliance amid TFWP crackdown

author avatar
Derek Shank
Updated: Jul, 9, 2026
  • Published: July 9, 2026

A greater share of employers have been breaking the rules of Canada’s Temporary Foreign Worker Program (TFWP).

Of 1,488 compliance inspections completed from April 1, 2025 to March 31, 2026, 12% of employers were found to be non-compliant, up from 10% for the 2024-2025 fiscal year, according to a press release published by Employment and Social Development Canada (ESDC) on July 9, 2026.

Schedule a Free Work Permit Consultation

Employer fines more than doubled over the same period, to $10.2 million, up from $4.5 million, according to the press release.

Employers were fined for program violations relating to areas such as workplace health and safety, employment standards legislation, and job offer integrity.

ESDC affirmed the government’s commitment to ensuring that the TFWP, which has come under fire in a period of rising unemployment, operates only as “a last resort option for employers who cannot find qualified Canadians and permanent residents to fill job vacancies.”

All TFWP work permits and renewals must be authorized by ESDC, which issues an employer a positive or neutral Labour Market Impact Assessment (LMIA) upon being satisfied that the hiring of a foreign worker is expected to have no negative impact on Canada's domestic labour market.

The press release is ESDC’s most recent report following its tightening of compliance activities in 2024, which also marked the introduction of an annual admissions target for temporary residents, along with a moratorium on low-wage LMIAs in regions with higher unemployment.

A job falls under the low-wage stream of the TFWP if it pays less than 120% of the regional median: $36 per hour in Alberta or Ontario, as of the time of writing.

Earlier this year, the government mandated that LMIAs show youth recruitment efforts, and doubled the minimum advertising period from four weeks to eight weeks.

Officers processing LMIAs must now also apply more exacting standards to applications in high-risk sectors, according to the press release.

At the Liberal caucus last September, Prime Minister Mark Carney said that the TFWP “must have a focused approach that targets specific, strategic sectors, and needs in specific regions.”

This March, Ottawa greenlighted an expansion of the low-wage TFWP stream in rural areas: within participating provinces and territories, rural employers across all sectors can now hire foreign workers for up to 15% of their workforce, up from the previous cap of 10%.

This year’s TFWP admissions have fallen by more than half compared to 2024: from 31,565 to 14,655 for the period of January through April, the most recent data available on the government’s website.

The federal government’s annual admissions target for the TFWP for 2026 is 60,000, accounting for about a quarter of the top-line target of 230,000 worker admissions.

The remaining 170,000 work permit admissions for 2026 are earmarked for the International Mobility Program (IMP), which operates under a mandate that includes cultural development, and through which the issuance of a work permit does not require an LMIA.

IMP admissions have fallen by 69% this year relative to 2024, from 142,805 to 43,705.

Schedule a Free Work Permit Consultation

 

Share this article
Share your voice
Did you find this article helpful?
Thank you for your feedback.
Subscribe to our newsletter
Did you find this article helpful?
Please provide a response
Thank you for your helpful feedback
Please contact us if you would like to share additional feedback, have a question, or would like Canadian immigration assistance.
  • Do you need Canadian immigration assistance? Contact the Contact Cohen Immigration Law firm by completing our form
  • Send us your feedback or your non-legal assistance questions by emailing us at media@canadavisa.com
Related articles
Low-wage LMIA processing restrictions lifted for eight regions, including Halifax, Winnipeg, and Regina
Downtown Halifax panorama across Halifax harbor, Nova Scotia, Canada.
Ottawa reports increased non-compliance amid TFWP crackdown
The latest enforcement data on Canada’s Temporary Foreign Worker Program (TFWP) show an increase in employer non-compliance.
Newfoundland and Labrador expands work permit access in rural areas
Houses, fishing sheds and stages on the hill side and along the coastline in The Battery, St. John's, Newfoundland and Labrador.
British Columbia and New Brunswick expand access to work permits for employers in select regions
A picture of a hanging bridge in North Vancouver
Top Stories
Low-wage LMIA processing restrictions lifted for eight regions, including Halifax, Winnipeg, and Regina
Canada holds second-ever Express Entry draw for senior managers with Canadian work experience
Five Canadian cities take top spots in international safety rankings
Join our free newsletter. Get Canada's top immigration stories delivered to your inbox.
Subscribe
More in Canada
Five Canadian cities take top spots in international safety rankings
A view of the Chateau Frontenac surrounded by greenery in Quebec, Canada at sunrise
Wait times ease for permanent residence and citizenship applicants
Three happy individuals in front of a laptop.
Wait times rise for many temporary residence applicants, IRCC data shows
A closeup shot of a woman wearing a green shirt checking her watch.
Canada extends direct-to-permanent-residence pathway for French-speaking students
The federal government has extended the Francophone Minority Communities Student Pilot.
Link copied to clipboard