Canada Doubles Temporary Foreign Worker Program Penalties Amid 50% Application Drop

Since the introduction of stricter rules in September 2024, the number of applications for the Temporary Foreign Worker (TFW) Program in Canada has dropped by approximately 50%, with a 70% decline in the low-wage stream. Employment and Social Development Canada (ESDC) emphasized that Canadian workers are prioritized and the TFW Program is a last resort for employers unable to find qualified Canadians or permanent residents. The government collected nearly $4.9 million in penalties for non-compliance during fiscal 2024-2025, more than double the previous year's amount, including the largest-ever fine of $1 million imposed on Bolero Shellfish Processing Inc., which was also banned from the program for 10 years due to violations such as underpayment and failure to ensure safe working conditions. New rules deny TFW applications in regions with unemployment rates above 6%, with exceptions for certain sectors and short-term jobs, and impose limits on low-wage temporary workers as a percentage of the workforce. The government has strengthened inspection and compliance measures to protect temporary workers' rights and well-being while reducing reliance on the program amid political pressure linked to high youth unemployment.