Canada tightens rules for the TFWP

Employment and Social Development Canada (ESDC) has once again clarified that when it comes to employment, Canadians and permanent residents are always the top priority.

In a new announcement from Employment and Social Development Canada (ESDC) on 6 October 2025, the federal government confirmed that the Temporary Foreign Worker Programme (TFWP) will remain a last resort for employers who cannot find qualified workers within Canada.

The update also reveals major reforms in how the programme is monitored and enforced, including stricter inspections, record penalties for non-compliance, and targeted plans to reduce overall programme usage.

This shift is part of Ottawa’s broader economic vision to build a stronger, more self-sufficient Canadian workforce while protecting the rights and safety of all workers.

The TFWP is a last resort for employers

Detailed article on the Temporary Foreign Worker Program (TFWP).

The Temporary Foreign Worker Programme is designed to fill critical labour shortages when no suitable Canadians or permanent residents are available.

Employers applying for this programme must:

• Demonstrate that local recruitment efforts have been exhausted
• Continue to advertise the position while their application is being reviewed
• Provide safe, fair, and legally compliant working conditions

Despite its important role in sectors such as agriculture, food processing, construction, and healthcare, foreign workers account for only about 1% of Canada’s total workforce.

Government decides to reduce reliance on the programme

The government’s message is clear: Canada wants to rely less on temporary foreign labour and strengthen the domestic recruitment system.

See also IRCC increases nominations Alberta Advantage Immigration Program (AAIP) for 2025
Following a tightening of the labour market in late 2024, Ottawa introduced new measures resulting in:

• A 50% overall reduction in applications for the Temporary Foreign Worker Programme.
• A 70% reduction in the low-wage stream.

These figures show a strong shift towards sustainable long-term recruitment strategies that prioritise Canadian job seekers and permanent residents.

For non-compliant employers

The government has significantly expanded its compliance and inspection framework to ensure the protection of temporary foreign workers and accountability from employers.

ESDC’s 2024–2025 fiscal year data reveals

• 1,435 compliance inspections conducted.
• 10% of employers found to be non-compliant.
• Penalties doubled from $2 million to nearly $5 million.
• 36 employers banned from using the programme, a threefold increase from last year.

Below are examples of recent enforcement actions:

Sector	Summary of violations	Penalties & Bans
Agriculture	Failure to provide safe housing and documentation	Fine of $212,000 CAD, 2-year ban
Construction	Underpaying workers, violating labour laws	Fine of $161,000 CAD, 5-year ban
Road transport	Falsifying business operations and records	Fine of $150,000 CAD
Fish & Seafood	Abusive working conditions, unpaid wages, and violations of labour laws	A fine of US$1,000,000, a 10-year ban (the largest penalty in history)

Employers found violating the Temporary Foreign Worker Program rules are also publicly listed on the IRCC website, ensuring complete transparency.

Protecting workers

Ottawa has emphasised that every worker, whether Canadian or temporary, deserves to work in safe, fair, and respectful conditions. To ensure this, Service Canada operates a secure tip line where workers can report unsafe or abusive conditions anonymously.

How to report

• Phone: 1-866-602-9448 (available 24/7, live representatives in over 200 languages)
• Online: Abuse reporting form on the Government of Canada website

All reports are protected under privacy laws, and employers are never notified of who made the report.

Monitoring in collaboration with federal partners

ESDC continues to work closely with:

• Immigration, Refugees and Citizenship Canada (IRCC)
• Canada Border Services Agency (CBSA)
• Royal Canadian Mounted Police (RCMP)

This partnership helps identify fraudulent applications, human rights violations, and labour exploitation, ensuring swift legal action when necessary.

What happens next

The federal government is moving towards a more strategic use of the Temporary Foreign Worker Program, focusing on specific sectors and regions facing genuine, long-term labour shortages.

According to Minister Patty Hajdu, Canada’s vision is simple:

“Building a stronger Canada means protecting those who work tirelessly, day in and day out. The Temporary Foreign Worker Program is a last resort, not a substitute for Canadian talent.”

By tightening enforcement and refining eligibility, the government aims to ensure that the programme continues to serve its true purpose, filling temporary gaps while prioritising Canadian job seekers first.

Building a future for workers

Canada’s Temporary Foreign Worker Program reforms reflect a clear message that protecting workers and fairness are top priorities.

The government’s increased penalties, stronger compliance measures, and reduced reliance on temporary labour underscore the goal of empowering Canadian workers while ensuring that foreign workers are treated with dignity.

For employers and workers seeking to comply with Canadian immigration and labour laws, consulting certified RCIC immigration professionals can help avoid penalties, streamline applications, and ensure full legal compliance.