Stronger Protections for Temporary Foreign Workers

Summary#

These are final amendments to the Immigration and Refugee Protection Regulations that add new rules for employers who hire temporary foreign workers. They come into force on September 26, 2022 and mainly aim to give workers more information and protections, and to make it easier for government officials to check and enforce employer compliance.

What it does#

• Requires employers to give each temporary foreign worker a copy of the government’s information about their rights in Canada — in the worker’s chosen official language — on or before the first day of work.
• Requires a signed employment agreement (in the worker’s chosen official language) that matches the job, wages, and conditions promised in the offer of employment.
• Adds “reprisal” (for example, threats, demotion, dismissal) to the definition of workplace abuse and protects workers who report problems or cooperate with inspections.
• Prohibits employers (and the recruiters they use) from charging or recovering recruitment-related fees from workers, with a narrow seasonal-agriculture exemption.
• Requires employers under the Temporary Foreign Worker Program (TFWP) to obtain and pay for private health insurance that covers emergency medical care for any period a worker is not covered by provincial health insurance.
• Requires all employers (TFWP and International Mobility Program (IMP)) to make reasonable efforts to provide access to health care when a worker is injured or becomes ill at the workplace.
• Gives Employment and Social Development Canada (ESDC) and Immigration, Refugees and Citizenship Canada (IRCC) the power to require documents from third parties (for example, banks or payroll firms) to verify employer compliance.
• Allows ESDC to suspend processing of a Labour Market Impact Assessment (LMIA) request when there is reason to suspect an employer is non‑compliant in ways that would put a worker’s health or safety at serious risk.
• Makes certain LMIA checks stronger (for example, wages must match the prevailing rate and the job must not worsen an ongoing labour dispute).
• Updates how violations are classified and enforced (Type A/B/C) and notes consequences such as warning letters, administrative monetary penalties, and temporary or permanent ineligibility to use the programs.

Who's affected#

• Temporary foreign workers hired under the TFWP and the IMP — they gain new rights and protections.
• Employers who use those programs — about 48,000 employers are estimated to be affected.
• Recruiters and third parties (banks, payroll firms) that handle employer documents or recruitment.
• Small businesses are particularly touched: the analysis estimates 47,272 small businesses will be affected.
• ESDC and IRCC — their staff will use new authorities and inspection tools to enforce the rules.
• Provincial and territorial authorities may be involved because the regulations require employers to follow local employment and recruitment laws.

Why it matters#

• For workers: stronger protections and clearer information. Workers should get a signed contract, a copy of government information about their rights in a language they choose, protection from reprisals if they report problems, and (for many TFWP workers) employer-paid private insurance for emergency care.
• For employers: clearer rules but new responsibilities and some added costs. The government estimates total regulatory costs at $39,347,442 (present value) over 10 years, and total monetized benefits at $32,137,423 (present value), leaving a net monetized cost of $7,210,020 (present value) over the same period. A large share of employer costs is estimated for providing private emergency health insurance (about $24,846,476 PV).
• For program integrity: officials get stronger tools to investigate and stop abusive or unsafe employment situations (for example, by obtaining third‑party documents or suspending LMIA processing).
• Enforcement: employers who break the rules can face penalties, including administrative monetary penalties that can reach up to $1,000,000 in total, and public posting of non‑compliant employers.
• Effective date: these protections and obligations took effect on September 26, 2022.