Question Period Note: EMPORARY FOREIGN WORKER PROGRAM: LABOUR MARKET IMPACT ASSESSMENT MISUSE AND FRAUD ASSOCIATED WITH THE PROGRAM

Fraudulent practices associated with the Temporary Foreign Worker (TFW) Program, and misuse of the Program and its Labour Market Impact Assessments (LMIAs) are serious issues that receive frequent media attention.

The Government of Canada takes its responsibility to protect the integrity of the Temporary Foreign Worker (TFW) Program very seriously. Buying and selling Labour Market Impact Assessment (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 per year and a ban from the Temporary Foreign Worker Program.

When fraudulent activity is suspected, the TFW Program works with partners such as the Canada Border Services Agency and the Royal Canadian Mounted Police, who have the appropriate enforcement authorities to investigate fraud.

Together, the Government of Canada and its partners are actively working to prevent misuse and crack down on suspected fraud.

To access the TFW Program, prospective employers submit a Labour Market Impact Assessment (LMIA), which 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 by reinforcing program requirements related to wages and working conditions.

If LMIA misuse or fraud is suspected, it can be reported via Service Canada’s confidential tip line, which is available 24 hours a day, 7 days a week, with access to live agents offering services in over 200 languages Monday to Friday, from 6:30 am to 8:00 pm Eastern time. These agents can help workers and anyone else to anonymously report situations of mistreatment, LMIA misuse, or fraud. Received tips and allegations are triaged within 48 hours/2 business days. In the review of these tips and allegations, information may lead to the launch of an inspection and/or referrals to key partners and law enforcement, as appropriate (i.e., IRCC, CBSA, RCMP, and provinces and territories).

In September 2022, the Immigration and Refugee Protection Regulations were amended to include authorities that allow for the suspension of the processing of an LMIA if there is reason to suspect employer non-compliance, and if there is serious risk of harm or safety of the temporary foreign worker. The amendments also included prohibiting employers from charging or recovering recruitment fees from workers; holding employers accountable for the actions of third parties in this regard; and the prohibition of reprisal by employers against workers (e.g., reprisal against those who come forward with complaints).

The TFW Program works closely with key partners and stakeholders, including international partners to prevent LMIA misuse and fraud. The TFW Program has important bilateral relationships with source nations under the Seasonal Agricultural Worker Program (SAWP). Agreements under SAWP 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 and oversight to workers while in Canada.

The TFW Program also works closely with provincial and territorial partners. British Columbia, Manitoba, Saskatchewan, and Nova Scotia, for instance, require employers hiring temporary foreign workers in their provinces to first be registered with provincial/territorial (PT) authorities. Proof of this registration is then verified at the LMIA application stage. These employer registries complement federal objectives by helping to capture unscrupulous employers and third parties who may be breaking laws and standards under PT jurisdiction. Discussions with other provincial authorities are underway to expand these requirements to other jurisdictions.

The College of Immigration and Citizenship Consultants, established in 2019 through an act in Parliament, also requires that anyone who is not already a lawyer be licensed through the College before being permitted to either provide Canadian immigration or citizenship advice or represent workers for a fee. These licensed professionals are accountable to their professional regulatory body for any unethical behaviour and misconduct, and the College has powers and tools to investigate and discipline those who engage in exploitative activities. It also maintains a public registry of all its licensees as well as consultants who have been subject to disciplinary action, which provides a clear list of qualified service providers to prospective clients. The Department 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.

LMIA misuse can include the buying and selling of genuine LMIAs issued by Employment and Social Development Canada (ESDC). This misconduct is undertaken by unscrupulous employers for the intent of personal or financial gain, rather than filling a legitimate labour or skill gap.

LMIA misuse can also include an employer knowingly not adhering to the wages and working conditions as established in their LMIA.

TFW Program fraud is part of a larger practice of unethical and illegal recruitment of foreign nationals and can occur domestically and internationally.

This includes falsifying job offers and/or fabricating LMIA decision letters.

It can also include non-compliant activities by authorized and unauthorized third-party recruiters e.g., fraudulent immigration consultants.

The TFW Program’s compliance regime is administrative, meaning ESDC does not have authority to investigate and prosecute fraudulent activity.

If criminal activity, including fraud, is suspected, the TFW Program works with partners such as Immigration, Refugees and Citizenship Canada (IRCC), Canadian Border Services Agency (CBSA) and the Royal Canadian Mounted Police (RCMP) to share information that supports the investigation of fraudulent or criminal activity.

To prevent TFW Program misuse, higher-risk employers are subject to greater scrutiny of their LMIA applications. Moreover, ESDC’s Job Bank proactively monitors employer recruitment, removing an average of 1,000 seemingly non-compliant job ads per week.

Enhanced LMIA assessments for higher-risk employers focus on concerns that may negatively impact worker protections or the local labour market. They are more rigorous and include in-depth and fact-finding questions.

Higher-risk employers are identified based on known patterns, past compliance information, results of previous inspections, and other factors, such as advertising wages that are higher than the prevailing wage for a low-wage position.

Since April 1, 2025, approximately 35% of LMIAs applications undergo an enhanced assessment.

Since June 2025, Job Bank proactively monitors employers’ recruitment efforts with a function called “Direct Apply.” If an employer’s application activities do not satisfy Job Bank criteria (e.g., the employer does not open job applications submitted to them through Job Bank), the employer will be unable to apply to the TFW Program.

The TFW Program also has an employer compliance regime designed to verify whether employers are adhering to program requirements and conditions.

If inspected, employers must demonstrate compliance with up to 29 conditions designed to protect the Canadian labour market and/or protect temporary foreign workers from mistreatment and exploitation.

If an employer is determined to be non-compliant, consequences can range from a $500 to a $100,000 penalty per violation, up to $1 million per year, and/or a temporary or permanent ban from the TFW Program.