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Canadian Employers must look after expats or face penalties

Announced in a press release the CIC confirmed that strict condition will take effect on 1 December and which could see Canadian employers, who violate the rules of the Temporary Foreign Worker Program (TFWP) and International Mobility Program (IMP), being banned from employing migrants.

Canadian Employers Must Look After Expats Or Face Penalties

The new regulations, which were announced in July of this year, will be jointly administered and implemented by the departments of Citizenship and Immigration Canada (CIC) and Employment and Social Development Canada (ESDC).

Currently, the repercussions for employer non-compliance of any kind is a two-year ban from using the program. There is no range of penalties depending on the severity of the violation.

Under the new regulations, employers who do not comply with the regulations of the program could receive a penalty of a one, two, five, or 10-year ban from use of the program(s) per violation. Ban lengths will be based on the type of violation, the employer’s history of violations that occurred on or after December 1, 2015, and the severity of the violation. In the most serious of cases, employers could be penalized with a permanent ban. Regular inspections of employer compliance will be carried out.

Employers are, under the new regulations, required to:

• Provide accurate information in the context of a Labour Market Impact Assessment (LMIA) application
• retain documents and records for a period of at least six years
• pay wages that are substantially the same, but not less favourable, than those set out in the job offer
• provide the same occupation as that set out in the job offer
• provide working conditions that are substantially the same, but not less favourable, than those set out in the job offer
• make reasonable efforts to provide a workplace free of abuse
• stay actively engaged in the business in which the job offer was made (not applicable for the Caregiver stream)


• remain compliant with any federal, provincial or territorial employment or recruitment laws.

To ensure that Canadian employers heed the new rules they will be required to:

• Undergo an Employer Compliance Reviews (ECR)
• Be subjected to reviews under Ministerial Instruction (RuMI) and Inspections.

Canadian companies who treat migrant and expat employees differently or unfairly face administrative monetary penalties (AMPs). Fines can range from NZ$500 to NZ $100,000 per violation.

Government imposed corrective action, in the case of non-compliance, includes:

• Warnings
• fines ranging from $500 to $100,000 per violation, up to a maximum of $1 million over one year, per employer
• being banned from accessing the programs for one, two, five, or ten years or permanently; and
• publication of the employer’s name on a public list with details of the violation(s) and sanction(s).

The new regulations apply to employers hiring foreign nationals under either the TFWP or the IMP, as well as Canadians hiring foreign caregivers, and will apply to any violations that occur on or after December 1, 2015. For unjustified non-compliance with program conditions that occurs prior to December 1, the current regulatory framework which provides for a two-year ban will continue to apply.

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