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Canada Employer Compliance Inspection Rules 2026

Hiring foreign workers in Canada has officially entered a new era of scrutiny. As of January 1, 2026, the federal government has completed a massive overhaul of the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP).

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With the transition away from open work permits and the introduction of the New Work Licence Framework, employers now face rigorous, continuous monitoring rather than one-time checks. If you are an employer in Canada, staying compliant is no longer just “best practice”—it is a matter of business survival.

The 2026 Inspection Surge: What Triggered the Change?

The new rules for 2026 have two main goals. They protect jobs for Canadians. They also stop bad treatment of foreign workers.

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New Work Licence Rules

Many open work permits are now tied to one employer. This helps the government watch job conditions more closely.

The “Six-Year” Rule

The government can start a check any time. This can be from the day the worker starts until six years after the work permit ends. Employers must keep records for a long time.

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Inspection Triggers

Checks often start for these reasons:

  1. Reason to Suspect — Tips from people or odd data.
  2. Known Past Non-Compliance — If you failed before, you get more checks.
  3. Random Selection — Some checks are picked by computer systems.

These rules help keep things fair. Employers should always be ready for a check.

Mandatory Reporting & Administrative Requirements

In 2026, employers have more tasks and papers to handle. Your records must be ready for a check at any time.

Key Compliance Deadlines & Fees

Here are some main rules and costs:

  • LMIA Compliance Cost → Up to $1,000 extra per application for more checks.
  • Termination Reporting → Tell the government within 4 weeks if a worker leaves.
  • Record Retention → Keep hiring and pay records for 6 years.
  • Prevailing Wage Update → Update wages each year to match Job Bank rates.

Do these on time to stay out of trouble.

The §209.3 “Duty of Care” (Updated)

New rules say employers must show they:

  • Give a safe workplace with no abuse.
  • Make sure workers pay no fees for the job.
  • Provide a job contract in English or French, signed by both.

This helps protect workers. Employers should teach their teams these rules.

High-Stakes Penalties: The Cost of Non-Compliance

The government has made penalties much higher in recent years. They can go up to big amounts. The message is: Do not break the rules.

  • Financial Fines — Up to $100,000 per problem. Up to $1 million in one year.
  • Public Blacklisting — Your company name goes on a public list. This hurts your name and business deals.
  • Program Bans — You may not hire foreign workers for years or ever.

Case Study (2026)

A company got a big fine and a ban for not paying the right wages. Real cases like this show the risks. Check everything to avoid high costs.

How to Prepare for an Unannounced On-Site Visit

Inspectors can come to your workplace without warning. Follow this plan to be ready:

  1. OCR-Ready Digital Files — Keep permits, contracts, and pay records on computer. Easy to search and send fast.
  2. The “Prevailing Wage” Check — Pay the higher of Job Bank wage or what Canadians get for the same job.
  3. Primary Agriculture Update — From January 1, 2026, show proof of job ads for farm LMIA. Save pictures of ads.
  4. Worker Interviews — Inspectors can talk to workers alone. Make sure workers know their rights and have info sheets.

Practice with your own checks. This helps a real visit go well.

Conclusion: Proactive Compliance is Your Best Defense

The plan for 2026–2028 cuts new temporary workers a lot. There is more competition for good employers.

Companies that make rules a big part of daily work will do best. Start now. Train people. Keep good records. This helps you hire needed workers safely.

Is your business ready for a check? Share your questions in the comments. Or sign up for updates on rules.

Disclaimer: This is for information only. Check official sites like Canada.ca or talk to a lawyer for real advice.

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