The employer inspections for the 2022-2023 fiscal year have been conducted by Employment and Social Development Canada (ESDC), and the results of this have been revealed recently. 

A total of 21,00 employers were surveyed in the study, which finds that the TFWP compliance rate stands at 94%. Among those, only 6% of the employers were found non-compliant. 

These six percent are mentioned on the website of the Immigration Refugees and Citizenship Canada (IRCC). 

Employment and Social Development Canada, or ESDC, is in charge of ensuring that businesses that employ Temporary Foreign Workers (TFWs) adhere to the Terms and Conditions of the Temporary Foreign Worker Program (TFWP). 

Of the 116 non-compliant businesses, 93 had to pay a fine, and 23 received a warning. In addition, seven of those are completely prohibited from utilizing the TFWP program, some even for a period of five years. 

For instance, two transport sector employers had to pay a fine of over $100,000 for not providing proper salaries and a suitable working environment to workers. Besides this, a construction firm was also issued a financial penalty of $53,000. 

The study followed the implementation of the 2022 new regulations introduced for the Temporary Foreign Worker Program (TFWP). According to the ESDC, these rules improve the ability of the program to conduct inspections. In addition, they also boost the overall compliance of the TFWP by assisting employers in sticking to the rules and keeping them accountable. 

According to the government, ESDC will publish semi-annual reports on the TFWP compliance efforts in the future. This will assist prospective workers in recognizing reputable organizations. 

The TFWP regulations. 

The Temporary Foreign Worker Program, commonly referred to as TFWP, allows Canadian businesses or employers to employ international workers, provided that they can prove that they are not able to hire enough workers from inside Canada. 

In order to hire foreign employees, all employers in Canada are required to obtain a Labour Market Impact Assessment (LMIA) from ESDC. 

LMIA is a document that outlines the economic implications of recruiting a foreign worker. 

If the ESDC believes that employing foreign workers under TFWP would either have a positive or neutral impact on the Canadian economy, the employers may be able to do so. 

The candidates of TFWP are provided with closed work permits. This implies that they can only work for a single employer in Canada. The employers under the TFWP are required to follow the Immigration and Refugee Protection Regulations (IRPR) to prevent abuse and employee exploitation. 

These rules are established to guarantee that temporary foreign workers have a safe working environment and are paid adequately. Employers are also required to offer adequate accommodations and follow health regulations similar to COVID-19. 

It’s notable that if foreign workers employed under TFWP become a victim of abuse, the Employers will be considered in breach of IRPR. 

Under the TFWP, all employers are required to pay as per the low or high-wage system. Also, depending on the province, a high-wage employee is anticipated to earn a median salary. 

Hiring a high-wage job role 

Employers who are looking to fill the high-wage roles must also demonstrate that they are investing in either educating Canadian citizens to address the labor shortages that necessitated a temporary foreign worker or explaining how they would assist the international workers in obtaining Canadian permanent residence status. 

Hiring a low-wage job role 

Employers who are looking to fill low-wage job roles are required to satisfy the below-mentioned conditions: 

  • For the temporary foreign workers, provide the round-trip transportation expenses; 
  • Make sure cheap housing is accessible for the temporary foreign workers; 
  • Provide the expenses for TFW’s private health insurance until they qualify for provincial health coverage; 
  • Enrol the temporary foreign worker (TFW) in the provincial/territorial workplace safety board and 
  • Provide the foreign employee with an employer-employee contract. 

The Canadian government has limited the total number of low-wage temporary foreign workers that an employer or business can hire to lower Canadian employers’ dependency on temporary foreign workers (TFW). 

For instance, Employers with ten or more employees who apply for a new LMIA face a 10% restriction on the proportion of their workforce, which comprises low-wage temporary foreign workers (TFWs). 

In addition to this, some of the low-wage professions may be denied LMIA processing. 

Encouragements to follow the TFWP regulations 

The ESDC- Employment and Social Development Canada launched a Recognized Employer Pilot (REP) program in September. This program was for returning Employers under the TFWP who have previously proven to comply with the rules & regulations of the Temporary Foreign Workers Program (TFWP). The primary advantage of this is lessening the administrative work involved with applying for the LMIA. This is possible because the REP participant’s LMIA remains valid for three years (36 months). 

The following are the other benefits of adhering to the TFWP regulations as per the ESDC. 

  • On the Canadian Occupational Projection System (COPS) list, a streamlined application procedure for future LMIA positions; 
  • Due to streamlined LMIA paperwork, there will be fewer points of contact between the participating companies and ESDC during the pilot. This allows the employers to hire more TFWs for real job offers throughout the REP and 
  • A job bank classification that demonstrates their recognized position in order to increase interest from prospective employees. 

In order to be eligible, the employers are required to have had at least three positive LMIAs for the same profession over the previous five years from a list of occupations defined as in-shortage and supported utilizing the COPS data.