Changes to Canada's Temporary Foreign Worker program have resulted in a substantial drop in the number of Labour Market Impact Assessments (LMIAs) issued to foreign workers. Figures show that just 40,000 LMIAs were issued in 2014, compared to more than 200,000 in 2012.
The latest announcement by Canada's Minister of Employment and Social Development may result in fewer employers hiring foreign workers. Effective December 1, 2015, employers who violate the rules of the Temporary Foreign Worker Program and the International Mobility Program (which includes intra-company transfers and free-trade agreement work permit categories), could face harsh penalties. Under the Immigration and Refugee Protection Regulations, the government now has a new arsenal of enforcement tools. Known as Administrative Monetary Penalties, AMPs are a regulatory compliance mechanism that allow for monetary penalties for incidences of non-compliance. Canadian employers who are found to be in violation of program terms and conditions could be subject to financial penalties ranging from $500 to $100,000 per violation, and up to maximum of $1 million in a one-year period. Violations will be weighted using a point system and penalties will be levied under a number of factors. In addition, the existing two-year ban from the programs will be replaced with bans of various lengths – including one, two, five and 10 years. Employers could face a permanent ban for the most serious violations. Employers who are banned will be published on the government web site.
Of the approximately 52,000 LMIA applications filed in 2014, 11,200 applications were refused. Many believe the primary cause of the decline is the introduction of non-refundable $1,000 CAD application fees. However AMP's and other factors will continue to affect Canada's declining Temporary Foreign Worker numbers.
Out of the total 40,000 LMIAs approved in 2014, about half were allocated to businesses in B.C. and Alberta, and the rest (about 15,000) to Ontario companies. A large number went to workers in the food service sector, farming workers, and temporary personnel in the entertainment industry.
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The content of this article reflects the personal insight of Attorney Colin Singer and needs no disclaimer.
