Employer Compliance
Hiring temporary foreign workers comes with legally binding obligations enforced by Service Canada. Non-compliance can result in fines up to $1,000,000, permanent bans, and public disclosure. Asteco helps employers stay compliant from day one.
Why Compliance Matters
Employers who hire temporary foreign workers through the Temporary Foreign Worker Program (TFWP) or the International Mobility Program (IMP) are subject to federal compliance requirements under the Immigration and Refugee Protection Regulations (IRPR), enforced by Employment and Social Development Canada (ESDC). Compliance inspections can occur at any time — announced or unannounced — and can be triggered by complaints, random selection, or previous non-compliance.
The consequences of non-compliance are serious. Penalties are published publicly — your business name and address appear on a Government of Canada website listing non-compliant employers. Previously issued LMIAs may be suspended or revoked. Prevention is always better than remediation.
Cannot Be Recovered from Workers
The LMIA processing fee ($1,000), the IMP employer compliance fee ($230), and any recruitment costs cannot be charged to or recovered from the temporary foreign worker under any circumstances. This is a serious violation.
ESDC Employer Contact Centre
Report changes to an approved LMIA or TFW working conditions immediately by calling 1-800-367-5693. Voluntary early disclosure is always better than having issues discovered during an inspection.
Employer Obligations Under the IRPR
Wages & Working Conditions
Record Keeping — 6 Years
Reporting Requirements
Worker Rights & Protection
Types of Compliance Inspections
ESDC can inspect employers for suspected non-compliance, previous non-compliance, random selection, or other triggers. Inspections can be on-site or virtual, announced or unannounced, and without a warrant (except private dwellings).
Document Review (Virtual)
ESDC reviews employment records, payroll documents, recruitment records, and copies of the LMIA or offer of employment remotely without visiting the worksite.
Trigger: Most common — can occur at any time, announced or unannounced
On-Site Worksite Inspection
ESDC officers visit the employer's worksite in person to verify working conditions, interview workers and employees, examine premises, and review records on site. Can be conducted without a warrant (excluding private dwellings).
Trigger: Triggered by complaints, random selection, previous non-compliance, or communicable disease at the worksite
Follow-Up Inspection
A subsequent inspection following a previous inspection where violations were found or corrective measures were required.
Trigger: Follows a previous inspection with findings of non-compliance
What Inspectors Can Do
The Inspection Process — Step by Step
Notification
ESDC notifies the employer of the inspection — including the period under review, the authority for the inspection, the conditions being reviewed, and instructions for what must be provided.
Review & Response
The employer must attend the inspection, answer questions, and prove compliance. Follow-up must be completed within the timeframe specified. A time extension can be requested.
Initial Finding
If compliance issues are found, ESDC sends an initial finding of non-compliance asking the employer to justify why they were not compliant — including what happened, what was corrected, and how recurrence will be prevented.
Notice of Preliminary Finding (NOPF)
If the justification is not accepted, ESDC issues a Notice of Preliminary Finding (NOPF) detailing violations and possible sanctions. The employer has 30 days to respond with new information or documentation.
Notice of Final Determination (NOFD)
After reviewing the employer's response to the NOPF, ESDC issues a Notice of Final Determination (NOFD) confirming the final violations, consequences, and next steps.
Consequences of Non-Compliance
Penalties are determined using a points system based on the type, severity, and history of violations. All cases resulting in monetary penalties or bans are publicly disclosed on canada.ca.
Warning
Issued for minor or first-time violations. No monetary penalty but employer must take corrective action. Business name is not published when the sanction is a warning.
Administrative Monetary Penalty
Fines up to $100,000 per violation, to a maximum of $1,000,000 per year. Outstanding LMIA applications will not be processed and no refund of LMIA fees will be issued if the employer becomes ineligible due to unpaid penalties.
Permanent Ban from TFWP and IMP
A permanent ban from both the Temporary Foreign Worker Program and the International Mobility Program for the most serious violations. Previously issued LMIAs may also be suspended or revoked.
Public Disclosure
ESDC publishes the employer's business name and address — along with details of violations and consequences — on the Government of Canada's non-compliant employers list. Business names are not published when the only sanction is a warning.
How to Prepare — Before an Inspection Arrives
Organize Your Records
Ensure all recruitment records, payroll records, employment contracts, LMIA documents, and work permits are organized and accessible. Records must be kept for 6 years from the first day of the TFW's employment.
Verify Wage Compliance
Confirm every TFW is being paid wages that are not less favourable than those in the LMIA or offer of employment. Review payroll records carefully. Any pay raises should be documented with justification.
Review Working Conditions
Confirm working conditions match what was committed to in the LMIA — including hours, benefits, and workplace safety. Document any changes and ensure they are not less favourable.
Consider Voluntary Disclosure
If you identify any compliance issues before an inspection, ESDC encourages voluntary disclosure. Proactively notifying ESDC of issues can result in a more favourable outcome than having violations discovered during an inspection.
Contact Asteco Immediately
If you receive notice of a compliance inspection, contact Asteco before responding to ESDC. Professional guidance at this stage can significantly affect the outcome.
How Asteco Can Help
Disclaimer: Employer compliance requirements are established by ESDC under the Immigration and Refugee Protection Regulations and are subject to change. This page reflects requirements as published by ESDC as of March 12, 2026. Penalty amounts and inspection procedures may be updated at any time. This information is for general guidance only and does not constitute legal advice. If you receive notice of a compliance inspection, contact Asteco immediately.