by Cristina Zohil-Morton
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by Cristina Zohil-Morton
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Temporary Foreign Worker Program Canada: Employer Obligations, LMIAs, and Compliance in 2026
The Temporary Foreign Worker Program Canada (TFWP) allows Canadian employers to hire foreign nationals when no qualified Canadians or permanent residents are available for the role. For many businesses, the TFWP is a practical way to fill urgent labour shortages. However, it is also one of the most heavily regulated employer-driven pathways in Canada. Employer obligations under the Temporary Foreign Worker Program Canada extend well beyond securing a Labour Market Impact Assessment (LMIA).
If your business uses the Temporary Foreign Worker Program to hire talent, your HR and payroll practices must align with the exact terms approved by ESDC/Service Canada and reflected in the foreign worker’s work authorization. In 2026, inspections are increasingly data-driven, and small inconsistencies can trigger serious consequences, including administrative monetary penalties and bans from hiring foreign workers.
What Is the Temporary Foreign Worker Program Canada?
The Temporary Foreign Worker Program is primarily administered by Employment and Social Development Canada (ESDC) through the LMIA process. In most cases, employers must demonstrate that hiring a foreign national will not have a negative impact on the Canadian labour market, and that reasonable efforts were made to recruit Canadians or permanent residents before offering the position to a foreign worker.
Important distinction: the TFWP is different from the International Mobility Program (IMP), which covers many LMIA-exempt work permits. If your worker is LMIA-exempt, your compliance obligations and enforcement framework may differ. If you are unsure whether your hiring falls under the Temporary Foreign Worker Program Canada or the IMP, it is worth confirming early, because the audit/inspection expectations and documentation requirements can differ.
High-Wage vs Low-Wage Streams
Your obligations under the Temporary Foreign Worker Program depend on the stream you apply under. ESDC generally classifies applications based on whether the offered wage is above or below the applicable median wage in the province/territory of employment.
- High-wage positions: Often require a robust recruitment record and, in many cases, a Labour Market Benefits Plan (LMBP) showing how the employer will support the Canadian labour market over time.
- Low-wage positions: Often involve additional program conditions and may include caps or restrictions depending on the employer’s workforce profile.
Regardless of stream, employers must employ the foreign worker under the same core conditions that were approved, and must maintain documentation to demonstrate compliance.
Employer Obligations Under the Temporary Foreign Worker Program Canada
Employer obligations under the Temporary Foreign Worker Program in Canada generally fall into five categories: (1) wages and working conditions, (2) job duties and occupation, (3) location and hours, (4) record-keeping, and (5) program integrity obligations.
1) Wages, Benefits, and Working Conditions
Under the Temporary Foreign Worker Program Canada, employers must pay the wage offered in the LMIA application and reflected in the employment contract. Benefits, hours, and working conditions must be substantially the same as offered, and consistent with applicable employment standards.
- Pay the approved wage rate and ensure payroll records support it
- Provide the benefits promised (e.g., vacation, health benefits where applicable)
- Ensure the worker performs work in conditions consistent with what was offered
2) Occupation, Job Duties, and NOC Alignment
A frequent compliance risk under the Temporary Foreign Worker Program is “duty drift,” where a role evolves over time and the worker’s duties no longer align with the position approved under the LMIA. Even well-intended changes (promotions, expanded responsibilities, acting roles) can create non-compliance if the changes are material.
- Keep job descriptions current and aligned with the approved role
- Document any changes in duties and obtain legal guidance before implementation
- Avoid informal “temporary” duty changes that become permanent without review
3) Hours of Work and Work Location
Employers must maintain the approved hours and work location conditions under the TFWP. Changes to hours (reduced schedules, seasonal slowdowns) or location (remote work, hybrid arrangements, site changes) should be assessed carefully.
- Track hours consistently and keep time records
- Document work location policies and changes
- Confirm whether a change requires a new LMIA or a new work permit application
4) Record-Keeping and Document Retention
The TFWP expects employers to retain compliance records for a significant period of time. As a best practice, employers should maintain a centralized compliance file for each foreign worker that includes:
- LMIA decision letter and application materials
- Signed employment contract and any amendments
- Payroll records (pay stubs, T4s, ROEs where applicable)
- Recruitment evidence (job ads, results, interview notes)
- Proof the business is actively operating (leases, invoices, registrations)
5) Program Integrity and “No Fee Recovery” Practices
Under the Temporary Foreign Worker Program Canada, employers should not shift prohibited costs or program obligations onto foreign workers. Employer practices should be structured to avoid any appearance that the worker “paid for the job.” Employers should also ensure third-party recruiters are used appropriately and consistently with program rules.
LMIA Compliance: What “Ongoing” Really Means
A common misconception is that compliance ends once the worker arrives in Canada. Under the Temporary Foreign Worker Program, compliance is ongoing for the full authorized period of work, and enforcement can look back years later. This means employers must be able to demonstrate that the worker was employed under the approved conditions throughout the employment period.
If you are considering changes to wages, duties, reporting lines, hours, or location, it is often better to assess the change before implementing it rather than trying to “explain it later” during an inspection.
Temporary Foreign Worker Program Canada Inspections and Audits
ESDC can inspect employers participating in the TFWP. Inspections can occur with or without notice and typically involve document verification, payroll validation, and, in some cases, on-site review or interviews.
What Officers Commonly Review
- Whether the employer paid the wage approved in the LMIA
- Whether the worker performed the approved occupation and core duties
- Whether the employer maintained working conditions and hours offered
- Whether recruitment records support the LMIA application claims
- Whether the business is genuine and actively operating
What Triggers Inspections Under the Temporary Foreign Worker Program?
Inspections may be triggered by risk indicators such as wage discrepancies, inconsistent payroll reporting, complaints, business restructures, or random selection. A best practice is to assume that any employer using the Temporary Foreign Worker Program Canada could be inspected at some point and to maintain “inspection-ready” files.
Common Employer Mistakes Under the Temporary Foreign Worker Program Canada
In our experience, the issues that lead to non-compliance findings are often operational, not malicious. Common mistakes include:
- Assuming compliance ends after approval: failing to keep consistent records after onboarding
- Unrecorded role changes: promotions or expanded duties without reviewing immigration implications
- Wage changes without documentation: pay adjustments not supported by payroll records
- Location drift: hybrid/remote work arrangements not aligned with the approved work location
- Recruitment record gaps: missing or incomplete evidence supporting recruitment efforts
Penalties and Consequences of Non-Compliance
If an employer is found non-compliant under the Temporary Foreign Worker Program Canada, consequences can include administrative monetary penalties (AMPs), public listing, and bans from hiring foreign workers. The severity depends on the type of violation, prior history, and overall circumstances.
| Risk Category | Examples | Potential Consequences |
|---|---|---|
| Administrative gaps | Incomplete records, missing documents | Warnings or lower-range AMPs |
| Material mismatch | Duties/wage/location no longer align with approved terms | Higher AMPs, compliance agreements, increased monitoring |
| Serious or repeated issues | Patterns of non-compliance or significant deviations | Public non-compliance listing and multi-year bans |
Strategic Use of the Temporary Foreign Worker Program
When managed properly, the Temporary Foreign Worker Program supports long-term workforce stability. Many employers align TFWP hiring with a broader retention strategy, often including a pathway to permanent residence where appropriate. This can reduce turnover and protect operational continuity.
- Assess whether the role can support future permanent residence planning (where appropriate)
- Build compliance processes that scale (especially for multi-worker hiring)
- Integrate immigration compliance into HR onboarding and change management
At Zohil-Morton Law, we support employers across Canada with compliance planning, LMIA strategy, and workforce immigration solutions.
Still have questions? Book a consultation with Cristina Zohil-Morton and the team at Zohil-Morton Law.
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We’re here to keep you informed and empowered on your Canadian immigration journey.
This article is for informational purposes only and does not constitute legal advice. Please consult a licensed immigration professional regarding your specific situation.
Frequently Asked Questions
Is the Temporary Foreign Worker Program employer-specific?
Yes. Work permits issued under the Temporary Foreign Worker Program in Canada are typically tied to a specific employer, role, and location.
Can employers transition TFWP workers to permanent residence?
Often, yes. Many employers use the Temporary Foreign Worker Program Canada as part of a long-term retention strategy, depending on the role and the worker’s eligibility under permanent residence pathways.
Can inspections happen without notice?
Yes. ESDC inspections under the Temporary Foreign Worker Program Canada can occur with or without notice and may involve document requests, payroll verification, interviews, and on-site review.
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