In a recent decision with widespread implications for Canada's business community, the Supreme Court of Canada has ruled that administrative monetary penalties, or "AMPs," do not violate constitutional rights because they are not criminal in nature.

The case involved adviser penalties" found in the Income Tax Act aimed at professional tax advisers, planners and preparers – including lawyers and accountants. The ruling has broad implications for Canadian employers accessing the foreign labour market. Here is why.

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.

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The content of this article reflects the personal insight of Attorney Colin Singer and needs no disclaimer.