What Are the Consequences for Hiring a Worker Without a Valid Work Authorization in Canada?

Canadian immigration law imposes strict obligations on both foreign workers and their employers. While many employers act in good faith, unknowingly hiring a worker who lacks proper authorization can result in significant legal consequences. This article explores the legal risks for employers under Canada’s immigration framework and highlights why due diligence is not just recommended—it is essential.

Who Can Legally Work in Canada?
To be authorized to work in Canada, a foreign national must hold either:

- a valid work permit, or

- an exemption under the Immigration and Refugee Protection Regulations (IRPR).

For example, a student can only work off-campus if they are enrolled full-time in a designated learning institution. If they fail to meet this condition—such as by dropping out or not starting their program—they automatically lose the right to work.

The Employer’s Legal Responsibility
Under section 124(1)(c) of the Immigration and Refugee Protection Act (IRPA), it is a illegal to “employ a foreign national in a capacity in which the foreign national is not authorized under this Act to be employed.”

Even if an employer claims they were unaware of the worker’s status, the law is clear:

“A person who employs a foreign national without taking reasonable steps to determine whether the foreign national is authorized to work in Canada is deemed to know that they were not authorized.” (IRPA, s. 124(2)).

Penalties for Employers
Employers found guilty of this offence face the following penalties:

- By indictment: up to $50,000 in fines and/or up to 2 years of imprisonment

- By summary conviction: up to $10,000 in fines and/or up to 6 months of imprisonment (IRPA, s. 125)

These penalties are not hypothetical. Employers across Canada have faced legal action for failing to verify their workers’ immigration status.

Voluntary Disclosure
If an employer realizes they have unknowingly committed this offence, they may consider making a voluntary disclosure to authorities. While not mandatory, voluntary disclosure can be a mitigating factor if enforcement action follows. Legal advice should always be sought before proceeding with this step.

Best Practices for Employers

- Always verify a worker’s immigration documents before hiring.

- Keep copies of all work authorizations and maintain a record of expiry dates.

- Consult a qualified immigration professional when in doubt.

- Avoid relying solely on verbal confirmations from applicants.

Conclusion
Hiring a worker without valid work authorization, even unintentionally, can expose an employer to serious consequences under Canadian law. Employers must adopt rigorous hiring practices and exercise due diligence at every step. Protect your business by staying informed and compliant.