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Canada’s Temporary Foreign Worker Program (TFWP) requires employers to meet strict standards when hiring foreign workers.?To ensure compliance, the government conducts audits, inspections, and employer reviews through Employment and Social Development Canada (ESDC).
These checks help protect workers, prevent abuse, and ensure employers follow the conditions of their Labour Market Impact Assessment (LMIA).
Here’s a clear breakdown of how TFWP audits and inspections work.
1. What Are TFWP Audits and Inspections?
Audits and inspections are government compliance checks used to confirm that employers:
• Follow LMIA conditions
• Treat foreign workers fairly
• Comply with Canadian labour standards
• Maintain accurate records
Employers may be randomly selected, chosen due to risk indicators, or reviewed following a worker complaint.
2. Why Employers Are Audited
An employer may undergo an inspection for several reasons:
• Random selection
• Past compliance issues
• High-risk industry or region
• Worker or third-party complaints
• Incomplete or suspicious documentation
• Sudden changes in business operations
ESDC prioritizes cases where worker vulnerability may be higher.
3. Types of TFWP Compliance Checks
Audits and inspections fall into three main categories:
3.1 Employer Compliance Review (ECR) – Paper-Based
ESDC requests documents such as:
• Payroll records
• Employment contracts
• Proof of wages paid
• Recruitment records
• Workplace policies
• Housing details (if employer-provided)
The employer must submit documents within the deadline.
3.2 On-Site Inspections
Government officers may visit the workplace to:
• Review work conditions
• Interview employees
• Interview employers or HR staff
• Inspect housing (if provided to TFWs)
• Verify wage payments and job duties
Officers may arrive with or without prior notice.
3.3 Administrative Reviews
Done if:
• IRCC identifies inconsistencies during another process
• A foreign worker reports mistreatment
• ESDC flags payroll or wage issues
These reviews often lead to deeper investigations if problems are found.
4. What Inspectors Look For
During an inspection, ESDC checks whether the employer has:
• Paid the advertised wage
• Provided the same job duties as listed in the LMIA
• Offered safe working conditions
• Maintained proper housing standards (if applicable)
• Not retaliated against workers
• Followed all provincial labour laws
• Maintained accurate documentation for six years
Inspectors also verify that employers have not charged recruitment fees or taken workers’ passports.
5. Employer Obligations During an Audit
Employers must:
• Cooperate fully with officers
• Provide all requested documents
• Give access to the workplace
• Allow confidential worker interviews
• Provide housing access (if applicable)
• Maintain required records for at least 6 years
Failure to cooperate can result in immediate penalties.
6. What Happens After the Audit?
After reviewing all evidence, ESDC may conclude:
6.1 Employer is Compliant
• No penalties
• File closed
• Employer remains eligible for future LMIAs
6.2 Employer is Non-Compliant
Penalties may include:
• Fines up to CAD $1 million
• LMIA bans (1 year to permanent ban)
• Repayment of wages to the worker
• Suspension or revocation of existing LMIAs
• Public posting on the government’s employer blacklist
Serious violations can result in long-term bans from hiring foreign workers.
7. How Employers Can Prepare for a TFWP Audit
To stay compliant:
• Keep all records for six years
• Pay correct wages on time
• Follow the job description listed in the LMIA
• Maintain safe and legal workplace conditions
• Use authorized recruiters
• Never charge foreign workers fees
• Ensure workers have valid permits
Proactive compliance helps avoid penalties and delays.
Key Takeaway
Audits and inspections under the TFWP ensure that employers treat foreign workers fairly and follow all LMIA conditions.?Inspections may be random or triggered, and non-compliance can lead to severe financial penalties and hiring bans.?Employers who maintain accurate records and follow Canadian labour standards generally pass without issues.
Disclaimer
This article is for informational purposes only and does not constitute legal or immigration advice.?TFWP audit and inspection rules may change based on updates from ESDC and IRCC.?Always consult official government guidance before making decisions.
November 27, 2025
