Archive · 29 Sep 2026
Canada Tightens Work Permit Rules, Barring Staffing Agencies
Canada has changed how companies can hire temporary foreign workers.
A staffing agency cannot pretend to be the worker’s employer when another business controls the job.
The real employer must hire, supervise and pay the worker directly.
The government will examine who controls the worker’s schedule, duties and workplace.
Companies also cannot call someone an independent contractor when the person is really an employee.
Employers must not charge workers recruitment fees.
Breaking these rules can lead to penalties, bans or a rejected application.
The changes especially affect workers whose jobs involve staffing agencies or Employers of Record.
Canada now defines the employer as the business that hires, controls and directly pays a temporary foreign worker.
Staffing and employment agencies cannot obtain approval to hire workers for another company when no direct employer-employee relationship exists.
Businesses that actually employ and supervise workers must meet the Temporary Foreign Worker Program requirements and obtain any necessary Labour Market Impact Assessment.
Employers cannot misclassify workers as independent contractors or charge them recruitment fees, including indirectly.
Employers applying for approval must prove that their business and job offer are legitimate and comply with wage and workplace rules.
- Who
- Canadian businesses, staffing agencies, Employers of Record and temporary foreign workers are affected.
- What
- Canada revised its Temporary Foreign Worker Program rules to prevent staffing agencies from acting as employers when another business actually controls the worker.
- When
- The articles do not specify when the revised rules took effect.
- Where
- Canada.
- Why
- The changes are intended to ensure that the business with the genuine employer-employee relationship is responsible for the worker and complies with program requirements.
- Employer definition
- The employer must hire the temporary foreign worker, determine working conditions and directly pay the worker.
- Government assessment
- Employment and Social Development Canada will consider control over the workplace, schedule, duties, supervision, wages and dismissal.
- Staffing agencies
- Agencies recruiting workers for another business are not considered employers under the Temporary Foreign Worker Program in these circumstances.
- Worker classification
- Employers cannot classify workers as independent contractors when an employer-employee relationship exists.
- Recruitment fees
- Employers must ensure recruitment fees are not charged to or recovered from temporary foreign workers, directly or indirectly.
- Possible consequences
- Violations can result in administrative monetary penalties, bans from the program or a negative Labour Market Impact Assessment decision.
- Application timing
- Employers using Labour Market Impact Assessment Online can apply up to six months before the expected job start date.