Question Period Note: TEMPORARY FOREIGN WORKER PROGRAM: LABOUR MARKET IMPACT ASSESSMENT MISUSE

The illicit misuse of Labour Market Impact Assessments (LMIA) is a serious issue and receives frequent media attention.

• The Government of Canada remains firmly committed to the rights and protections of temporary foreign workers.
• The buying and selling of LMIA positions for personal or financial gain is prohibited.
• Employers involved in this practice are non-compliant with Program conditions and are subject to significant consequences, including administrative monetary penalties of up to $1 million and a ban from the TFW Program.
• The Government of Canada and it partners are working to reduce program misuse.

Labour Market Impact Assessment
To access the TFW Program, prospective employers submit an LMIA application to the Government of Canada. An LMIA evaluates whether there is genuine need for the employer to hire a temporary foreign worker and imposes specific requirements. The LMIA is an important tool that not only serves to protect the Canadian labour market but also acts as the first safeguard for worker protections. It reinforces program requirements related to wages and working conditions, employment standards, and employer obligations.
Illicit LMIA Misuse
LMIA misuse includes both the buying and selling of LMIAs, as well as the unethical recruitment and exploitation of vulnerable foreign nationals for personal and financial gain.
There is evidence that these types of illicit activities are being undertaken by a range of players, both domestically and internationally. These practices put foreign workers at risk of abuse and mistreatment and compromise the integrity of the TFW Program and the measures it has in place to protect Canada’s broader labour market.
The Department is working to better understand and address this issue, and already has tools at its disposal, with others planned or recently launched, which will help protect both temporary foreign workers and the Canadian labour market.
• A compliance regime to verify, through inspections, that employers are meeting program requirements set out in their LMIA and the conditions set out in pertinent regulations, including compliance with accommodation requirements when employers provide accommodations for temporary foreign workers. If an employer fails to meet program conditions, financial consequences can range from a $500 penalty up to a $100,000 per violation with a maximum combined amount up to $1 million per year, and/or a temporary or permanent ban from the Program.

• Service Canada also maintains a confidential tip line, available 24 hours a day, 7 days a week, with live agents offering services in 200 languages, Monday to Friday from 6:30 AM to 8:00 PM, and online reporting tool where temporary foreign workers or other interested parties can anonymously report situations of potential wrongdoing and misuse of the TFW Program.

• The College of Immigration and Citizenship Consultants, established in 2019 through an act in Parliament, requires that anyone who is not already a lawyer to be licensed through the College before being permitted to either provide Canadian immigration or citizenship advice or represent workers for a fee.

• In September 2022, several regulatory amendments to the Immigration and Refugee Protection Regulations came into force. These included authorities to suspend the processing of an LMIA if there is reason to suspect employer non-compliance, and there is serious risk of harm or safety of the temporary foreign worker as well as authorities which prohibit employers from charging or recovering fees from workers. They also allow employers to be held accountable for the actions for recruiters in this regard. The amendments also include prohibiting reprisal by employers against workers, for example, against those who come forward with complaints.

• Tightening measures implemented in 2024 aim to enhance program integrity by reducing the number of available positions, and the length of time that LMIAs remain valid, while also reducing employer reliance on foreign labour; thereby limiting opportunities for unscrupulous employers to misuse the Program.

International partners also play a key role in compliance, and the TFW Program has important bilateral relationships with source nations under the Seasonal Agricultural Worker Program (SAWP). These agreements encourage organized labour mobility through established and trusted channels for countries like Mexico and participating Caribbean nations. These source nations are responsible for the recruitment of workers and provide consular support /oversight to workers while in Canada.
ESDC also supports Immigration, Refugees and Citizenship Canada with the International Organization for Migration and maintains membership in the Global Policy Network to advance migrant worker protections and promote ethical recruitment in Canada and around the world.
ESDC also works closely with PT partners. British Columbia, Manitoba, Saskatchewan, and Nova Scotia require employers hiring temporary foreign workers in their provinces to be registered with PT authorities, and registration is verified at the LMIA application stage. The Program is in discussions with other PTs as well. These registries complement federal objectives by helping to capture unscrupulous employers and third parties who may be breaking laws and standards under PT jurisdiction. Note that while no employer registry currently exists in Quebec, the Immigration and Refugee Protection Regulations has a provision for Quebec to be consulted as part of the LMIA assessment.
ESDC also engages regularly with Canadian Association of Professional Immigration Consultants (CAPIC) to monitor issues of mutual interest, and to facilitate the governance and operation of the program.

None