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How to be prepared for a Past Compliance Audit in the Temporary Foreign Worker Program
By Benjamin Guth, Director of Operations, Diamond Global Recruitment Group
November 29, 2010
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A recent trend with the Temporary Foreign Worker program is the increase in Past Compliance Audits. This “Audit” was created as a protection measure by Service Canada to ensure that employers deliver on their promises and maintain compliance with the rules and regulations of the Temporary Foreign Worker Program. Cooperating with Service Canada by fully participating in an audit of your temporary foreign worker experience is a wise move.
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A business owner can avoid unnecessary stress by working with a legitimate recruitment firm that does not charge fees to workers, and by maintaining proper records. If an officer uncovers non-compliance issues, the company may be banned from the program, and the business name may be added to a public blacklist. Financial penalties may result if the officer discovers that the workers have paid recruitment fees related to obtaining employment with the company.
It is always better to be prepared than to be caught off guard. There are certain documents that must be retained for temporary foreign workers. Be aware that an “Audit” may not be conducted immediately upon the arrival of the workers; it may in fact occur when you submit an application to apply for a new labour market opinion to retain your workers.
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Here is a simple checklist to prepare for your “Audit”
- Retain receipts for proof of payment of transportation costs (airfare).
- Should an employer enter into any type of agreement in which money was deducted from the employee’s pay cheque (for housing, furniture, uniforms, etc.), please be sure to keep a detailed agreement, signed by the worker, which outlines the nature of the deductions.
- Paystubs (statement of earnings) of the workers for at least seven years.
- Proof that the employer has complied with all terms indicated in the Positive Labour Market Opinion and Employment Contract including, but not limited to:
• Wages
• Working hours
• Working conditions
• Job title
• Job location
• Benefits, if applicable
• Job duties
- Prepare a well-developed training plan that will demonstrate your willingness to hire and train resident Canadians should you be able to find qualified candidates.
We recommend that employers continue to advertise the position on the Service Canada Job Bank for several months after the foreign worker has arrived.
Please note that if an employer promotes a worker to a supervisory position, a new LMO and work permit reflective of the new job description is required.
“Audit” experiences vary depending upon the Service Canada Officer assigned to the file. Many officers are helpful and supportive. Others can be difficult. If you are prepared in advance, this should not be a daunting experience.
Once an employer has satisfied the requirements of the “Audit”, future applications for temporary foreign workers should be met with less resistance. In other words, the next LMO application may be easier to obtain than in the past.
Changes to the Temporary Foreign Worker Program occur frequently and without notice. We recommend that you check the Service Canada website frequently to ensure that you remain compliant throughout the duration the of the employment contract.
Diamond Recruiting is a CRFA-approved foreign recruiter, and CRFA members are entitled to a 5% discount when using Diamond’s services. Contact Diamond at 416-730-0029 ext. 240/1-888-886-8209, or by email at crfa@diamondglobal.ca.
Not a CRFA Member? Click here to join.
About the author:
Benjamin Guth is Director of Operations at Diamond Global Recruitment Group.
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