Canadian Employers: New Fees and Compliance System – TFWs







Beginning FEBRUARY 21, 2015, Citizenship and Immigration Canada (“CIC”) would require that employers hiring temporary foreign workers (“TFWs”) that are exempt from the Labour Market Impact Assessment (“LMIA”) process to pay a brand new fee to CIC.

The new fee for each work permit will be CAD $230 (payable on-line by employers). Employers will be compelled to offer new and additional information concerning their business and an additional form, even when TFWs are applying at a Canadian port of entry.

With this new system in motion, any foreign national exempt from an LMIA will only be able to get a Canadian employer-specific work permit if their Canadian employer has submitted the desired data, and paid the applicable fee before their work permit application is submitted, or created at a port of entry.

By implementing this fee, CIC hopes to be able to cover the costs of their new employer compliance system, which will precipitate inspections of Canadian employers that use TFWs. Non-compliance may mean administrative financial penalties, a ban from using TFWs, or possibly criminal investigation and prosecution, in the most serious cases of abuse by employers.

Open Work Permit Holders

While the CAD $230 fee is not applicable to this group of permit holders, a brand new fee of CAD $100 is going to be collected from open work permit applicants commencing February 21, 2015 (paid on-line at the time of application).

CIC is implementing this new fee to generate revenue for improved data collection and coverage on the role of open work permit holders within the Canadian labour market.

Fee Refunds

CIC will refund any of those new fees if the application submitted is later refused, or wherever the employer withdraws a job offer before the work permit is issued.




Supporting Article Research Sources: Dale Lessmann LLP, Mondaq