Government Fast-Tracked Temporary Foreign Worker Applications By Skipping Fraud Checks, Report Reveals
An investigation by the Toronto Star has revealed that the Canadian government is expediting applications for the Temporary Foreign Worker program by “directing processing officers to skip crucial steps designed to prevent fraud.” This comes as Prime Minister Justin Trudeau recently announced measures to tighten the program, which the government admits has been abused.
According to internal documents obtained by the Star and interviews with a current Employment and Social Development Canada employee, the department has been applying “streamlining measures” since January 2022 when evaluating applications from employers seeking to hire temporary foreign workers.
These measures include suspending routine checks such as contacting employers to confirm their applications, verifying the standing of lawyers and consultants representing employers, and clarifying promised overtime, vacation, and benefits for workers. The goal was to process applications faster rather than ensuring the program’s integrity and preventing potential abuse by unscrupulous employers.
The government’s recent announcement of changes to the TFW program aims to reduce the number of low-wage foreign workers businesses can hire and encourage the employment of Canadian residents. However, key sectors such as agriculture, healthcare, construction, and food security will be exempt from these changes.
Employment and Social Development Canada acknowledged in an email to the Star that the process for approving labor market impact assessments (LMIAs) “needs to be improved.” The department stated it is taking steps to restrict program access to employers demonstrating genuine labor market needs.
A long-time ESDC employee, speaking anonymously, revealed that checks curbing fraud have been eroded as the program expanded, prioritizing speed over scrutiny. The employee estimated that staff now skip approximately 50% of what they’re supposed to review on applications.
Internal documents show the department’s awareness of risks associated with overlooking information. One document states, “The department has considered and accepted the risk of an important piece of information being overlooked during the assessment of an LMIA application.”
The expedited process comes as demand for workers in Canada surges. In 2023, employers were approved to hire almost 240,000 temporary foreign workers, more than double the number in 2018. This expansion has been accompanied by increased allegations of abuse and fraud.
Immigration consultant Kanwar Sierah highlighted concerns about the reduced time for officers to exercise discretion in evaluating applications. He also noted a significant increase in LMIA scams, with some workers paying up to $80,000 for jobs that don’t exist upon arrival in Canada.
The UN’s special rapporteur on contemporary forms of slavery recently described Canada’s TFW program as “a breeding ground for contemporary forms of slavery,” emphasizing the need for granting migrant workers permanent resident status to end exploitation.
Information for this story was found via the Toronto Star, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
