Employers who participate in Canada's Temporary Foreign Worker Program (TFWP) are subject to a compliance regime under which Employment and Social Development Canada (ESDC) may inspect their workplaces and records to verify compliance with the conditions under which the Labour Market Impact Assessment (LMIA) was issued. Non-compliant employers face Administrative Monetary Penalties (AMPs) of up to $1 million per year and temporary or permanent bans from the TFWP and International Mobility Program (IMP). IRCC maintains a public list of non-compliant employers. The compliance regime has been significantly strengthened in recent years — in fiscal year 2024–2025, ESDC conducted 1,435 employer compliance inspections, with 10% of employers found non-compliant. Penalties in 2025 doubled compared to 2024.

For current compliance requirements, the inspection process, and the public non-compliant employer list, refer to the ESDC employer compliance page and the IRCC non-compliant employers list.

• Immigration and Refugee Protection Act (IRPA), s 91.1 — employer compliance inspections and the basis for the compliance regime
• Immigration and Refugee Protection Regulations (IRPR), ss 209.2–209.997 — employer obligations, violations, and the penalty regime for TFWP employers
• IRPR, ss 209.7–209.997 — Administrative Monetary Penalties and the three violation categories
• ESDC: Employer compliance — canada.ca/tfwp-compliance
• ESDC: Non-compliance and voluntary disclosure — canada.ca/tfwp-voluntary-disclosure
• IRCC: Penalties under the International Mobility Program — canada.ca/imp-penalties
• IRCC: Employers found non-compliant — canada.ca/non-compliant-employers

Who enforces compliance

There are two separate compliance streams, depending on whether the worker holds an LMIA-based or LMIA-exempt work permit:

• TFWP (LMIA-based): ESDC conducts compliance inspections through its Labour Market Integrity Directorate — inspectors can enter a workplace, review records, and interview workers and management
• IMP (LMIA-exempt): IRCC and CBSA conduct compliance reviews of employers using the International Mobility Program — the penalty regime and non-compliant employer list apply equally to IMP employers

Both regimes use a 6-year compliance window — employers can be inspected at any time within 6 years from the date the work permit was issued, not just while the worker is employed.

The three violation categories

Violations under the TFWP compliance regime are classified into three categories based on severity:

Category A — most serious violations

Category A violations are the most serious and attract the highest penalties. They include:

• Actions or omissions that put the health or safety of a temporary foreign worker at risk
• Abuse of a foreign national, including physical, sexual, or psychological abuse
• Charging or recovering recruitment fees from the worker, directly or indirectly
• Providing false information to obtain an LMIA

Category A violations can result in a permanent ban from the TFWP and IMP, in addition to the maximum monetary penalty.

Category B — wage and condition failures

Category B violations include failures to meet the specific conditions under which the LMIA was issued:

• Failure to pay the wages specified in the LMIA and work permit
• Failure to provide the working conditions specified (occupation, work location, hours)
• Failure to provide accommodation where accommodation was a condition of the LMIA
• Failing to pay for the worker's return transportation if required by the program conditions

Category C — administrative non-compliance

Category C violations are less serious administrative failures, such as:

• Failure to provide required documents or information to ESDC during an inspection
• Failure to maintain the required employment records for the 6-year period
• Failure to notify ESDC of a change in circumstances affecting the LMIA conditions

Penalties — Administrative Monetary Penalties

The penalty amounts depend on the violation category, the size of the employer (small, medium, or large), and whether it is a first, second, or subsequent violation:

• Penalties can reach up to $1 million per year per employer across all violations
• Category A violations attract the highest per-violation penalty amounts; Category C the lowest
• Repeat violations attract higher penalties than first offences
• ESDC significantly increased enforcement in 2025 — penalties assessed in fiscal year 2024–2025 were double those in the prior year

For the current penalty schedule by violation category and employer size, refer to the ESDC employer compliance page.

Bans from the TFWP and IMP

In addition to monetary penalties, non-compliant employers may be banned from participating in the TFWP and IMP:

• Temporary bans: Employers found non-compliant for less serious violations may be banned for a fixed period (e.g., 1 year, 2 years, or 5 years) during which they cannot obtain new LMIAs or hire workers under the IMP
• Permanent bans: The most serious violations — particularly those involving abuse or health and safety risks — can result in a permanent ban, meaning the employer is never again permitted to participate in either the TFWP or IMP
• Bans apply to the employer entity and may extend to related corporations and associated persons in serious cases

Public non-compliant employer list

IRCC maintains a public-facing list of employers found to be non-compliant with TFWP and IMP conditions. This list is relevant to temporary foreign workers because:

• Open work permit holders cannot work for employers on the non-compliant list — working for a listed employer is a violation of open work permit conditions
• The list is searchable and updated as new enforcement decisions are made
• Employers remain on the list for the duration of any ban imposed

For the current list, refer to the IRCC non-compliant employers page.

Voluntary disclosure

Employers who discover a compliance failure before an ESDC inspection begins may be eligible to make a voluntary disclosure. The voluntary disclosure program allows an employer to proactively report non-compliance to ESDC, which can reduce or in some cases eliminate penalties in eligible situations. Voluntary disclosure is not available for Category A violations. For the eligibility criteria and disclosure process, refer to the ESDC voluntary disclosure page.

The TFWP compliance regime has grown substantially more active and punitive since 2023. ESDC conducted over 1,400 compliance inspections in fiscal year 2024–2025, resulting in doubled penalty assessments year-over-year. Employers using the TFWP or IMP should treat compliance obligations — maintaining wage records, employment records, and accommodation documentation for the full 6 years — as an ongoing administrative function, not something to attend to only when an LMIA is active. Workers who experience abuse, non-payment, or unsafe working conditions can contact ESDC directly and are protected from employer retaliation. Open work permit holders who discover their employer is on the non-compliant list should seek advice on transitioning employers — the vulnerable worker open work permit pathway may also be available. For current penalty amounts, the inspection process, and the non-compliant employer list, refer to the ESDC employer compliance page.