Employment and Social Development Canada (ESDC) has confirmed a significant increase in employer compliance inspections for businesses that hire temporary foreign workers through the Labour Market Impact Assessment (LMIA) process.
In 2026, ESDC is conducting 40% more on-site inspections compared to 2025, with particular focus on employers in agriculture, food processing, and hospitality sectors.
Consequences of Non-Compliance
Employers found in violation of LMIA conditions face serious consequences:
- 2-year ban on submitting new LMIA applications
- Public listing on the non-compliant employer registry at canada.ca
- Administrative monetary penalties up to $100,000 per violation
- Revocation of existing work permits held by employees
What Employers Are Being Checked For
Inspectors are reviewing whether employers are meeting the wages and working conditions stated in their LMIA, are not charging recruitment fees to workers, and are providing adequate accommodations where applicable.
Workers Can Report Violations
Temporary foreign workers can report employer violations anonymously through the TFW Program tip line at 1-800-367-5693. Reports can be made in English, French, and other languages.