At Global Move Immigration, we understand the importance of compliance and enforcement in the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP). Employers of foreign nationals must be prepared for compliance reviews and inspections to avoid significant penalties and disruptions to their operations.
Understanding the Compliance Landscape
The TFWP includes a robust compliance and enforcement framework. Inspections cover 25% of workplaces employing foreign nationals, including those under the IMP, which encompasses intra-company transfers and specific free-trade agreement work permit categories (e.g., USMCA).
Administrative Monetary Penalties (AMPs)
AMPs increase risk exposure for workplaces employing foreign nationals. These penalties can be imposed for non-compliance without formal proceedings, promoting adherence to TFWP and IMP requirements. Penalties can be substantial, reaching up to $1 million, and may be cumulative if multiple violations occur.
The Administrative Monetary Penalty Regime
The AMP regime encourages compliance through penalties for a range of violations, such as:
Each violation is treated separately, and penalties are determined using a point system considering factors like employer size, previous non-compliance, and the extent of benefit from the violation. Besides monetary penalties, employers may face hiring bans and public disclosure of violations.
Compliance Reviews and Inspections
Compliance reviews and inspections can be triggered by new LMIA applications and conducted on-site without a warrant. Inspectors have the authority to interview employees and access payroll records and other documents. Employers must respond to preliminary findings within 30 days and can cite justifications such as good faith errors or administrative failures.
Post-Inspection Consequences
After a final determination, employers must settle penalties or agree to a payment plan before applying for new LMIAs or supporting new work permit applications. Challenges to final determinations require seeking leave for judicial review in Federal Court.
Who Is Affected?
All employers of foreign nationals are subject to compliance reviews and inspections, whether they hold LMIA-based or LMIA-exempt work permits, including NAFTA work permits and intra-company transfers.
Tag-Along Risk Concerns
Inspections may reveal violations of other statutes, such as human rights and employment standards legislation, which inspectors can report to relevant authorities. This exposes employers to additional risks beyond immigration compliance.
Ensuring Compliance
Employers of foreign nationals should ensure compliance with all program requirements, LMIA conditions, and relevant employment and human rights legislation. This proactive approach minimizes the risk of penalties and disruptions.