$4.1 million fines for violations of Canada’s temporary foreign worker program a ‘drop in the bucket’

2025/01/23 Leave a comment

Of note, an increase but still small number:

The federal government issued more than $4.1 million in penalties to employers violating the rules of the temporary foreign worker program in 2024, according to data from Immigration, Refugee and Citizenship Canada. This is a 55 per cent increase from the $2.67 million handed out in 2023.

Ottawa levied 154 fines against non-compliant companies over the last calendar year, averaging $26,917 per decision, according to the Star’s analysis of the data — almost double the $13,917 average in 2023.

Use of the temporary foreign worker program by Canadian businesses has surged in recent years, particularly in low-wage sectors like construction and hospitality. Along with the increase, there have also been growing allegations of worker exploitation and abuse.

A Toronto Star investigation into the program’s application process found that in January 2022, the government directed staff to implement “streamlining measures” when evaluating the legitimacy of applications by employers seeking temporary foreign workers. Routine checks meant to ensure the system is not abused by unscrupulous employers were suspended in an effort to process applications faster.

“Workers in Canada deserve and expect to feel safe and protected in the workplace. That’s why we’re taking steps to further protect temporary foreign workers and hold bad actors accountable,” said Labour Minister Steven MacKinnon in a statement last week.

From April to September, Employment and Social Development Canada (ESDC) — responsible for processing applications for temporary foreign workers — said it conducted 649 employer compliance inspections. Of these, 11 per cent were found to be non-compliant. 

Inspections in this six month period also resulted in 20 employers being banned from the temporary foreign worker program, a fivefold increase compared to the same time the previous year, ESDC said.

“Eleven per cent — one in 10 companies misusing the program — is extremely high,” said Catherine Connelly, a professor at McMaster University’s DeGroote School of Business, and an expert on the temporary foreign worker program.

The government’s data underscores the need for stronger oversight of the program and for more investigations and greater deterrents than current fines, Connelly says, noting that several employers remain listed as having an “unpaid monetary penalty.”

Source: $4.1 million fines for violations of Canada’s temporary foreign worker program a ‘drop in the bucket’

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Fines mounting for violations in Canada’s temporary foreign worker programs

2024/05/07 Leave a comment

Of note. Good and revealing data analysis:

The federal government penalized nearly 200 companies last year for violating the rules of its temporary foreign worker programs, resulting in record fines for infractions such as wage theft and abuse in the workplace.

Ottawa reached 194 decisions against non-compliant employers in 2023 and handed out $2.7-million in penalties, an average of $13,800 per decision, according to a Globe and Mail analysis of figures published by the government. Some employers have also been suspended from hiring temporary labour from outside the country.

While the government reached more decisions of non-compliance in 2021, last year set a new high for fines. And 2024 is shaping up to be even worse.

So far this year, the average fine is nearly $29,000, according to data pulled by The Globe in late April. In 2019, it was roughly $3,200….

Source: Fines mounting for violations in Canada’s temporary foreign worker programs

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‘Scumbag’ Ontario employers to be slapped with hefty new fines for withholding workers’ passports, vows labour minister

2023/03/22 Leave a comment

Good, but the proof will lie with enforcement or lack thereof. The decline in inspections over the last five years is not an encouraging sign:

Ontario employers who withhold vulnerable foreign workers’ passports will face stiff penalties under proposed new labour laws that aim to introduce the highest maximum fines in the country.

If passed, the legislation to be introduced Monday would result in penalties of $100,000 to $200,000 for each passport withheld from a worker — a significant leap from the current fines, which range from just $250 to $1000.

“It’s totally disgusting that any human being would ever be treated the way we see sometimes,” Labour Minister Monte McNaughton told the Star. “Which is why I’ve made this a top priority for myself and for our ministry.”

The proposed reforms would mean if employers are convicted of retaining documents for multiple workers, they could face cumulative fines ranging into the millions.

Withholding foreign nationals’ travel documents is already illegal under provincial employment laws, but heftier fines are “one piece of the puzzle” in a ministry crackdown on labour trafficking, McNaughton said.

Withholding workers’ travel documents is illegal — and widespread, advocates say

The new legislation comes in the wake of several recent labour exploitation cases that have resulted in criminal prosecutions. Earlier this month, York Regional Police announced it had identified 64 Mexican nationals who had been forced to live and work in “deplorable” conditions. Police have laid charges against the workers’ alleged abusers under human trafficking laws.

In that example, the labour ministry’s new penalty framework would also allow inspectors to slap recruiters with fines of up to $6.4 million for withholding passports, said McNaughton.

While retaining workers’ travel documents is coercive and illegal, advocates have long said the practice is widespread — and called for more proactive inspections to prevent violations of the Employment Protection for Foreign Nationals Act (EPFNA).

“The profound weakness of the legislation is that it depends upon individual workers to bring forward complaints,” notes a 2016 report authored by lawyer and migrant labour expert Fay Faraday.

Last year, the ministry investigated 189 claims under EPFNA, uncovered 25 violations and identified more than $100,000 of unpaid entitlements owed to workers.

Inspections down dramatically since 2017

Ministry of Labour data shows the number of inspections conducted to identifyoverall workplace violations such as wage theft has dropped significantly in recent years, from 3,500 in 2017 to 215 last year.

The number of prosecutions for employment standards violations also dropped to 34 from 233 over the same time period.

In a statement, the ministry said its employment standards officers have supported the government’s pandemic response over the past two years, including “providing essential businesses with compliance assistance” and enforcing lockdown regulations.

“While the number of inspections the ministry has been able to complete has been impacted by the pandemic, we have continued to investigate every claim and review every complaint reported to us.”

Labour minister’s focus is on cracking down on ‘scumbags’

McNaughton said the proposed new fines will complement the ministry’s new anti-trafficking unit that has so far initiated 45 investigations and recovered hundreds of thousands of dollars for over 3,500 workers.

“I know the changes will only work if you catch these scumbags,” he said. “My focus is cracking down on the bad guys who are breaking the law, and my goal is to fine them as much as possible.”

In addition to facing so-called administrative penalties for withholding travel documents, individuals who are prosecuted in court under the proposed labour reforms could face additional penalties of up to $500,000 or a year of jail — up from the current maximum fine of $50,000. Corporations would be liable for penalties of up to $1 million.

With labour exploitation attracting growing attention, the Migrant Workers Alliance for Change has said it believes the labour ministry is the right body to lead enforcement activities. The advocacy group has raised concern about the involvement of police and border authorities, particularly where vulnerable workers are at risk of deportation.

Proposed legislation includes higher fines, expanded worker protections

Other changes to be introduced Monday include higher fines for corporations convicted of health and safety violations, raising fines to $2 million from $1.5 million.

The move follows an increase in maximum fines for individuals who break workplace safety laws, brought in last year.

The proposed new legislation will also contain a number of other initiatives recently announced by the ministry, including expanded cancer coverage for firefighters at the workers’ compensation board and protections for remote workers during mass terminations.

Source: ‘Scumbag’ Ontario employers to be slapped with hefty new fines for withholding workers’ passports, vows labour minister

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