Both Canada’s temporary foreign workers programs (the TFWP and IMP) emphasize compliance with Immigration regulations. Accordingly, both LMIA-based and LMIA-exempt work permits, including intra-company transferee and NAFTA or CETA work permits may be subject to compliance reviews, inspection and enforcement by Service Canada (ESDC) or Immigration Refugees and Citizenship Canada (IRCC). Any employer of foreign nationals in Canada is affected by the compliance regime and 1 in 3 of these, according to some estimates, may be the subject of a compliance review or inspection.

At this time, employer compliance reviews are decreasing in frequency and inspections are becoming the new norm. An inspection may be initiated from the first day of employment for which a work permit is issued up to a maximum of six years thereafter. Inspections can involve employers having to answer questions and provide documents, the examination of documents, or on-site inspections, including interviews with foreign workers or other employees (with consent). During an inspection process, processing of all new LMIA applications is suspended.

Following an inspection, an employer found to be non-compliant with any of the conditions of Canadian immigration regulations without acceptable justification, may face one or more of the following penalties:

• Warnings;
• Monetary penalties ranging from $500 to $100,000 per violation, up to a maximum of $1 million over one year;
• Ban from accessing the International Mobility Program (IMP) and the Temporary Foreign Worker Program (TFWP) for a specified time: 1-10 years, or permanent bans for the most serious violations;
• Employer’s name and penalty published on the list of non-compliant employers;
• Work permit applications associated with the employer being refused;
• The revocation of LMIAs and/or work permits for all foreign nationals in the employ of the business using Ministerial Instructions.

To know more about how to ensure your business is compliant with Canadian immigration regulations, about the process of compliance reviews and inspections, or if you have been found to be non-compliant, please CONTACT US to schedule a legal consultation.