Immigration Lawyer
Compliance
Immigration Lawyer
Compliance
Compliance plays an important role in protecting workers from being exploitedand ensuring asafeworkplace. It includes all foreign workers hired under the Temporary Foreign Worker Program (TFWP), International Mobility Program (IMP), or through work permits associated with free trade agreements (such as NAFTA). The compliance inspections are done by federal immigration authorities of Canada.
These inspections are conducted to ensure that employers areadhering to labour laws with utmost integrity, providing fair wages and safer working conditions for all employees. Employers must comply with the terms and conditions set out in work permits or Labour Market Impact Assessment (LMIA) certificates, as applicable.
What is the process of administrative monetary penalties (AMPs)?
Administrative Monetary Penalties (AMPs) are penalty amounts that are imposed on employers who fail to comply with the laws and regulations of the employment standard. The AMPs issued are done without the need for prior proceedings, serving as a notice of violation that enforces immediate consequence for non-compliance.
What are Administrative Monetary Penalties (AMPs) in Canada?
Administrative Monetary Penalties (AMPs) get imposed on employers who don’t follow the rules and regulations given in the Temporary Foreign Worker Program (TFWP) and International Mobility Program (IMP). The goal of these penalties lies in motivating employers to maintain good conduct throughout. This abides by the environmental and labour law requirements in Canada.
Acts considered as Non-compliance
Non-compliance refers to violations of the rules and regulations that employers must follow when hiring foreign workers or dealing with other regulatory obligations. These include:
- Improper record-keeping and documentation
- Not abiding by the terms of the LMIA (Labour Market Impact Assessment)
- Not complying with the LMIA-exempt work permit requirements
- The foreign worker is not adhering to the employment terms specified in their work permit.
- Any other non-compliance under the terms of employment with the foreign worker
- Charging recruitment fees to foreign workers or recovering fees indirectly.
- Not providing required documents or refusing cooperation during an inspection.
- Non-compliance with health and safety regulations, including providing proper accommodations or health insurance coverage for Temporary Foreign Workers (TFWs)
Please Note: Every rule violated by an employer is a separate offence, that results in cumulative penalties. A maximum fine of $1 million is charged.
The penalties are determined by a point system based on several factors:
- Employer size: the larger a company is, the higher the penalties imposed.
- Previous violations: Employers who have a past of violating regulations may face harsher punishments.
- Benefit from non-compliance: If an employer benefits financially from non-compliance, the penalties will increase.
The penalties imposed on the defaulting Canadian employers under this regime can include one or many of the below:
- Monetary penalties
- Notice barring the employer from hiring any more foreign workers ever
- Employer name and violations list can be made public on the relevant website.
What Are the Obligations of an Employer?
Employers hiring foreign workers under the Temporary Foreign Worker Program (TFWP) or the International Mobility Program (IMP) are responsible for complying with several rules and regulations.
1. To meet the needs of the
- Labour Market Impact Assessment (LMIA)
- Observe the guidelines outlined in the LMIA decision letter.
- Annexes to the decision letter.
- The Immigration and Refugee Protection Regulations (IRPR)
2. To keep all relevant records of the last six years, starting with the first day of the job for which the work permit was issued, that includes:
- Documents related to LMIA
- Documents related to the conditions set out in the IRPR
- conditions outlined in the LMIA decision letter and its annexes
- changes in the standards of housing (for example, if a TFW decides to move out of workplace housing and into private housing).
3. To let ESDC know right away (by calling the Employer Contact Center at 1-800-367-5693)
- about any changes or mistakes with a valid LMIA
- any changes to the working conditions of TFW workers
How does the Inspection for Compliance work?
Inspections are conducted by Employment and Social Development Canada (ESDC) and Immigration, Refugees, and Citizenship Canada (IRCC). They can do on-site visits, employee interviews, and reviews of payroll and employment records without a warrant as well.
ESDC can carry out these inspections upon 20–25% of the total Canadian employers hiring foreign workers.An employer has 30 days to respond to the non-compliance notice, during which they can provide various justifications. Once the employer receives a final indictment for non-compliance, they lose their eligibility for further LMIAs or new work permit applications until they settle the penalty. The only option for the Canadian employer to contest the final ESDC decision is to file for a judicial review in federal court.
Global Talent Stream
Inspections are also conducted for foreign workers came through Global Talent Stream. This is a part of IMP program and therefore all conditions specified in the Labour Market Benefit Plan along with the GTS LMIA approval letter shall be adhere to.
How can Nanda & Associate Lawyers support you?
If you are looking for trusted legal guidance to avoid the complexities of compliance, then connect with our skilled immigration lawyers. We can help you understand complicated rules easily so that your business stays on the right side of the law.
We can Help
The well-informed immigration lawyers and consultants at Nanda & Associate Lawyers will assist you in clarifying the duties and obligations of employers with regards to foreign worker employment.
We will impart sound legal advice to help you establish a suitable audit mechanism to manage foreign workers and be on the right side of the law.
Frequently Asked Questions
1. What is an employer compliance inspection in the context of hiring foreign workers without a permit?
Employer compliance inspections are conducted by the Canada Border Services Agency (CBSA) or Immigration, Refugees, and Citizenship Canada (IRCC) to employers that hire foreign workers exempted from work permits. The purpose of the inspection by the compliance officer is to ensure that the workers are not exploited, and the employers adhere to the terms provided in Immigration and Refugee Protection Regulations (IRPR).
2. What documents and information are employers required to provide during a compliance inspection?
Employers must produce specific documents during a compliance inspection. These documents are time sheets, payroll records, benefits proof, employment contracts, work permits, and health and safety documentation. The Chief Compliance Officer checks if the employers complywith the employment standard mentioned in the Labour Market Impact Assessment (LMIA) when foreign workers are recruited.
3. How does an employer know ofa compliance inspection, and how is responded to?
The IRCC notifies employers about compliance inspections by issuing a notice. Employers are required to submit all necessary documents for inspection within 30 days. If needed, employers can request an extension, which may be granted based on the circumstances.
4. What happens if I am found to be non-compliant?
If you are found to be non-compliant, there are many consequences, which vary depending on the type of compliance. The compliances include fines and a further ban on hiring more foreign workers. The penalties given depend on the kind of violation. It also means that you will be listed publicly, and an active application for granting a work permit can be revoked for the future.
5. Are there any penalties for employers who fail to meet compliance requirements under the Temporary Foreign Worker Program?
Yes, if an employer fails to meet the compliance, there are consequences of penalties. These penalties include fines as per the severity of the violation. The employer will be banned from further recruiting workers through TFWP and be listed as a non-compliant employer on the IRCC website.
Canada’s immigration landscape stands at a critical juncture. In March 2026, Bill...
