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TFWP Inspections Report 94% Compliance Rate.

Writer's picture: AdminAdmin

Updated: Mar 1, 2024


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Employment and Social Development Canada (ESDC) has recently disclosed the outcomes of employer inspections conducted during the 2022-2023 fiscal year, revealing a commendable 94% compliance rate among the 2,100 employers surveyed. This positive report underscores the efficacy of the Temporary Foreign Worker Program (TFWP) in maintaining high standards and ensuring adherence to regulations. Let's delve into the key findings and the impact of new regulations introduced in 2022.



Key Findings:

  1. High Compliance Rate: The vast majority of employers, totaling 94%, demonstrated compliance with the conditions outlined in the TFWP. This reflects the commitment of employers to meet the program's requirements and maintain ethical employment practices.

  2. Non-Compliance Cases: Among the 2,100 employers surveyed, 6% were found to be non-compliant. These cases are now listed on the Immigration Refugees and Citizenship Canada (IRCC) website for transparency.

  3. Enforcement Actions: Of the 116 non-compliant employers, specific enforcement actions were taken. Ninety-three employers were required to pay monetary penalties, 23 received warnings, and seven were banned from using the program for varying periods, some up to five years.

  4. Sector-Specific Fines: Notably, fines exceeding $100,000 were imposed on two employers in the transport sector for failure to provide adequate wages and safe working conditions. A construction company also faced a substantial $53,000 fine.


Impact of New Regulations:


The positive compliance rates coincide with the introduction of new regulations to the TFWP in 2022. These regulations were implemented to enhance the program's ability to conduct inspections effectively and bolster overall compliance. By providing regulatory frameworks and holding employers accountable, the government aims to ensure the ethical treatment of Temporary Foreign Workers (TFWs) and maintain the integrity of the program.



Regulatory Conditions:

  1. Labour Market Impact Assessment (LMIA): To hire foreign workers under the TFWP, employers must obtain a Labour Market Impact Assessment (LMIA) from ESDC. This document outlines the economic impact of hiring a foreign worker and must demonstrate a positive or neutral impact on Canada's economy.

  2. Closed Work Permits: TFWs operate under closed work permits, limiting them to working for a single employer in Canada. This measure is designed to prevent abuse and exploitation, ensuring fair treatment and adherence to Immigration and Refugee Protection Regulations (IRPR).

  3. Wage and Working Condition Compliance: Employers must adhere to specific conditions, including providing appropriate wages, safe working conditions, accommodation, and compliance with health protocols. Violations may lead to penalties, warnings, or program bans.

  4. Caps on Low-Wage TFWs: The government has implemented caps on the number of low-wage temporary foreign workers a business can employ. Employers with 10 or more employees applying for a new LMIA face a cap of 10% on the proportion of low-wage TFWs in their workforce.



Incentives for Compliance:


To encourage compliance, ESDC introduced the Recognized Employer Pilot (REP) program, offering benefits such as a simplified application process, extended LMIA validity, and a Job Bank designation for repeat TFWP employers with a history of compliance.



Conclusion:

The robust compliance rates reported in the recent inspections highlight the effectiveness of the TFWP and its ability to uphold ethical standards in employment practices. As the government continues to monitor and enhance the program, employers are incentivized to comply with regulations, fostering a fair and transparent working environment for Temporary Foreign Workers in Canada.




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