New government data reveals that the Canadian government ordered companies to pay nearly $5 million in fines during the last fiscal year for failing to comply with the regulations of the Temporary Foreign Worker Program (TFWP). This figure is more than double the $2 million collected in the 2023–24 fiscal year.
Applications Plunge Following New Rules
A new report from Employment and Social Development Canada indicates that after revised rules were implemented last year to make obtaining a TFWP permit more difficult, the total number of applications made under the program fell by half. This massive reduction included a 70 percent drop in applications specifically within the low-wage stream, which, along with the high-wage stream, is reserved for jobs below or above the provincial median income, respectively. Government data also shows that the number of temporary workers actually arriving in Canada is decreasing, with approximately 235,000 fewer temporary workers arriving between January 1 and July 31 compared to the same period last year.
The federal government has recently levied its largest financial penalty to date under the program. Bolero Shellfish Processing Inc. of New Brunswick was fined $1 million—the maximum financial penalty—and was simultaneously banned from participating in the TFWP for 10 years on September 17. The government cited multiple reasons for the penalty, including the company’s failure to comply with federal or provincial hiring laws, paying workers less than the listed job offer, and not doing enough to ensure the workplace was free of physical, sexual, financial, and/or psychological abuse. Of the approximately 260 non-compliance fines made public since September 2024, nearly 44 percent were issued solely because employers failed to produce necessary documents for inspectors.
Strict New Program Limitations
The new rules, introduced in September 2024, impose significant new limitations on the program. Ottawa will now refuse applications for TFWP permits in any census metropolitan area where the unemployment rate is above six percent. Exceptions exist for jobs in critical sectors like agriculture, construction, and health care, as well as for short-term jobs lasting less than 120 days. Additionally, the rules restrict the maximum number of low-wage temporary workers an employer can hire to just 10 percent of the total workforce. This cap is slightly higher, at 20 percent, for employers in certain sectors like health care, construction, and food manufacturing.
The government’s focus on tightening the program comes amid heightened political pressure fueled by high national youth unemployment. The TFWP, which the government says accounts for only about one percent of the national workforce, has become a hot topic, with the Conservatives recently starting to call for the program’s immediate termination. Conservative immigration critic Michelle Rempel-Garner stated on her way into question period, “The program should be abolished immediately.”
Author’s Opinion
The dramatic surge in fines coupled with the steep decline in TFWP applications is strong evidence that the Canadian government’s regulatory strategy is working primarily through deterrence and financial punishment. While the policy correctly responds to political pressure over youth unemployment, the maximum penalties are necessary to demonstrate that worker exploitation will not be tolerated. This aggressive crackdown, epitomized by the record-setting Bolero fine, signals a clear shift in priorities: the government is willing to risk labor shortages in certain low-wage sectors in exchange for better protecting worker rights and prioritizing domestic employment.
Featured image credit: PickPik
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