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The year 2025 highlighted that immigration non-compliance is no longer a minor risk; it can lead to significant financial consequences for employers. Businesses must remain vigilant as both federal and provincial authorities continue to tighten oversight.
Compliance Is Under the Spotlight
Ottawa recently imposed its largest fine under the Temporary Foreign Worker Program, signaling a strong stance on employer accountability. Penalties for violations—such as failing to meet program conditions—are cumulative and can quickly escalate into hundreds of thousands of dollars and bans from hiring foreign workers. A recent example was a New Brunswick-based seafood business which was fined $1 million and banned from using the temporary foreign worker program for ten years, for failing to provide proper wages and working conditions and not complying with the federal and provincial labour laws.1 Similarly, Ontario's Immigrant Nominee Program ("OINP") has prioritized program integrity, issuing $509,100 in penalties against 77 legal representatives and employers for breaches including inaccurate or misleading information in applications. Inspectors have the authority to recommend financial penalties and even ban employers and representatives from participating in the program.2
Practical Steps for HR Before Year-End
| Do's for a Smooth Season | Don'ts to Avoid Holiday Headaches |
|---|---|
| Keep checking your inbox—immigration authorities
don't pause for eggnog, and important emails can land anytime.
Make sure foreign workers on LMIA-based permits are paid according to prevailing wages on the Job Bank (which must be updated by January 1, 2026). Enjoy time with family and friends, but also finish the year strong by doing some housekeeping—review documentation and ensure everything is in order for retention of foreign workers. And while you're making your wish list for next year, consider sending it to your MP instead of the North Pole to make your voice heard on your immigration needs. |
Remind employees on maintained status not to leave Canada.
Don't ignore expiry dates and track important dates to avoid
unauthorized work.
Don't allow "visitors" to work without proper authorization and do not assume that they are eligible to enter as business visitors simply because they are in Canada for a short duration. No one wants to be detained at the border during the holidays—even Santa Claus! If he isn't a Canadian citizen or permanent resident, he'll need authorization to make hands-on deliveries in Canada. |
Footnotes
1. "Ottawa imposes its biggest fine under the
Temporary Foreign Worker Program", Naimul Karim, Financial
Post (2025 October 7)
2. The Ontario Immigrant Nominee Program lists employers and
representatives who are ordered administrative penalty or bans in
this publicly accessible website: Contraventions of the Ontario
Immigration Act, 2015 and/or its regulations and how to report
suspected fraud to the OINP
The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.
© McMillan LLP 2025