Can an employer be banned from hiring foreign workers in Canada?

Yes. Employers who violate the conditions of the Temporary Foreign Worker Program can be found non-compliant by Service Canada and banned — either temporarily or permanently — from using the program. This is a federal consequence and applies regardless of which province the employer operates in.

Non-compliance can include: paying workers less than the wage stated in the LMIA or work permit, requiring workers to perform different duties than those authorized, failing to provide committed benefits (such as transportation or housing in the Low-Wage Stream), subjecting workers to abuse, and other violations.

Service Canada publishes the names of non-compliant employers on a public registry, which can damage business reputation and relationships with Canadian workers. Monetary penalties may also be imposed.

Bans vary in duration based on the severity of the violation. Serious violations — particularly those involving worker exploitation or abuse — can result in a permanent ban.

For employers in Ontario, provincial enforcement under the Employment Standards Act, 2000 can also proceed separately from federal TFWP consequences. Both layers of enforcement can apply at the same time.