2 Companies In Canada Ordered To Pay $165K To Exploited Foreign Workers
In a significant ruling that underscores the challenges and vulnerabilities tied to Canada’s foreign worker programs, two Alberta-based companies have been ordered to pay a combined total of $165,000 to exploited foreign workers. This case highlights the ongoing issues of labor exploitation and the critical need for stricter enforcement of employment regulations in the province.
Background: Foreign Worker Hiring in Alberta
Alberta’s booming economy has long relied on foreign workers to address labor shortages across various industries. Companies in the province often turn to the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP) to fill gaps in the workforce. However, these programs are tightly regulated to ensure fairness for both employers and employees.
Key Requirements for Employers
To hire foreign workers legally, Alberta employers must meet strict criteria. These include:
- Operating a legitimate, registered business with a proven track record in the province.
- Demonstrating a genuine need for foreign labor, often through a Labour Market Impact Assessment (LMIA).
- Maintaining a physical workplace in Alberta where employees can report for duty.
- Meeting financial thresholds, such as a minimum annual revenue of $400,000 and employing at least three full-time staff.
Recent Policy Changes in 2025
The Canadian government introduced significant changes to foreign worker policies in 2025. These updates aim to balance the needs of employers with the protection of local workers and foreign employees. Key changes include:
- A temporary suspension of low-wage LMIA processing in regions with unemployment rates above 6%.
- Workforce caps limiting the proportion of low-wage temporary foreign workers to 10% of a company’s workforce, with higher limits for construction and healthcare sectors.
Compliance and Worker Rights
Recent cases, including the $165,000 payment ordered from the two Alberta companies, emphasize the importance of employer compliance. Authorities are increasingly holding companies accountable for unpaid wages and other violations. This sends a clear message: protecting foreign workers’ rights is non-negotiable.
Looking Ahead
As Alberta’s economy continues to grow, the relationship between employers and foreign workers remains under scrutiny. With evolving policies and stricter enforcement, both parties must stay informed to navigate the complex landscape successfully.
Application Pathways for Hiring Foreign Workers
Alberta employers have two primary pathways to hire foreign workers: the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP). Each program has distinct requirements and purposes:
- Temporary Foreign Worker Program (TFWP): This program requires employers to obtain a Labour Market Impact Assessment (LMIA), which demonstrates that hiring a foreign worker will address a genuine labor shortage without harming the local labor market. The LMIA process involves showing that no Canadian citizen or permanent resident is available for the role, often through active recruitment efforts that meet federal standards.
- International Mobility Program (IMP): This pathway is for positions that are exempt from the LMIA requirement, such as those that offer broader economic or social benefits to Canada. Examples include intra-company transfers, certain academic positions, and roles under free trade agreements like CUSMA (Canada-United States-Mexico Agreement).
Financial and Operational Requirements
Beyond the regulatory requirements, employers must also meet specific financial and operational thresholds to hire foreign workers. These include:
- Annual Revenue: The business must have a minimum of $400,000 in gross annual revenue in the most recent fiscal year.
- Workforce Size: Employers must have at least three full-time employees (or the equivalent in part-time positions). Independent contractors do not count toward this threshold.
- Business Legitimacy: The company must be properly registered, have an established presence in Alberta for at least two full fiscal years, and operate a legitimate business that provides goods or services within the province.
Policy Updates and Their Impact
The 2025 policy changes have introduced additional layers of complexity for employers. Key updates include:
- Temporary Suspension of Low-Wage LMIA Processing: In regions with unemployment rates exceeding 6%, the federal government has paused the processing of low-wage LMIA applications until at least July 10, 2025. This measure aims to protect local workers in areas with higher unemployment, but it also creates challenges for employers in those regions who rely on foreign labor for certain roles.
- Workforce Caps: Employers are now limited in the proportion of low-wage temporary foreign workers they can hire. Most industries are capped at 10% of their total workforce, while construction and healthcare sectors are allowed up to 20%. These caps are designed to ensure that foreign workers do not disproportionately fill low-wage roles in industries where local workers are available.
Protecting Worker Rights and Ensuring Compliance
Recent enforcement actions, including the $165,000 payment ordered from Alberta companies, highlight the consequences of non-compliance with employment standards. Employers are required to:
- Provide accurate job offers that match the terms outlined in the LMIA or IMP application.
- Pay foreign workers at the prevailing wage rate for their role to ensure equity with Canadian workers.
- Reimburse foreign workers for certain expenses, such as the cost of obtaining a work permit, if required by law.
- Ensure safe and healthy working conditions that meet Alberta’s occupational health and safety standards.
Conclusion
Alberta’s framework for hiring foreign workers is designed to balance economic needs with the protection of local and foreign workers. The 2025 policy updates, combined with stricter enforcement of employment standards, create a more regulated environment for employers. As the province continues to grow, companies must navigate these complexities carefully to avoid penalties and ensure fair treatment of all employees.
Conclusion
The ruling against the two Alberta companies underscores the critical importance of compliance with Canada’s foreign worker regulations. The Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP) provide essential pathways for employers to address labor shortages, but they come with strict requirements to protect both Canadian and foreign workers. The 2025 policy updates, including LMIA suspensions and workforce caps, reflect the government’s commitment to balancing economic needs with worker protection. As Alberta’s economy grows, employers must stay informed about these regulations to avoid penalties and ensure fair treatment of all employees.
Frequently Asked Questions (FAQ)
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What is the difference between the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP)?
The TFWP requires an LMIA to hire foreign workers, ensuring no Canadian is available for the job. The IMP exempts certain roles from LMIA requirements, focusing on broader economic or social benefits.
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What are the key updates to Canada’s foreign worker policies in 2025?
The updates include a temporary suspension of low-wage LMIA processing in high-unemployment areas and workforce caps limiting the proportion of low-wage foreign workers to 10% (20% for construction and healthcare).
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Why was low-wage LMIA processing suspended in certain regions?
To protect local workers in areas with unemployment rates above 6%, the government paused low-wage LMIA processing to prioritize hiring Canadians.
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What are the financial requirements for employers hiring foreign workers?
Employers must have at least $400,000 in annual revenue, employ at least three full-time workers, and operate a legitimate, registered business in Alberta.
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How can employers ensure compliance with foreign worker regulations?
Employers must provide accurate job offers, pay prevailing wages, reimburse eligible expenses, and maintain safe working conditions to comply with employment standards.
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Why are foreign worker protections important?
Protecting foreign workers ensures fairness, prevents exploitation, and upholds Canada’s commitment to human rights and equitable labor practices.
