February 9, 2023

Government Investing Heavily in Canadian Employer Labour Market Impact Assessment Compliance

Posted by Lijing Cao - Bellissimo Law Group PC

Audits and inspections of employers of temporary foreign workers in Canada could be initiated randomly or due to specific concerns of compliance, to ensure that employers comply with the Temporary Foreign Worker Program (TFWP) and/or International Mobility Program. The auditing of employers by Immigration, Refugees and Citizenship Canada (IRCC) and Employment and Social Development Canada (ESDC) has in recent years shown a slight increase in the numbers of non-compliance. 

The Government of Canada publishes a list of non-compliant employers on its website. As of the date of this writing, there are 629 employers on the list, with 262 of them facing bans from the TFWP over various periods, and 367 still eligible [1]. These employers have been found to be in violation of one or more of ss. 209.2, 209.3, and 209.4 of the Immigration and Refugee Protection Regulations (IRPR). 

The numbers of non-compliance in 2021 during the mid of the pandemic are historically high to reach 261 findings of non-compliance with 13 employers receiving a ban for various periods of time. The non-compliant figures decreased significantly in 2022, but the total number remained relatively high with 73 findings of non-compliance [2]. 

Based on published record, approximately 42% of employers were initially found to be non-compliant with TFW Program conditions since 2017 [3]. These (initially) non-compliant employers would be directed by the Department to take corrective actions to bring them into compliance. Only about 3% of employers every year did not address the issues (or without an acceptable justification) and were found non-compliant [4]. 

The new amendments to the IRPR related to temporary foreign workers came into force in September 2022, which aims to increase protection of foreign workers while imposing higher compliance requirements to Canadian employers. It remains to be seen whether and to what extent Canadian employers have adopted measures and policies in the workplace to comply with the new compliance regulations.  

If you are a Canadian employer navigating the compliance regime, contact us today to learn more.