Employers – The Strategy of Voluntary Disclosures
Under the Canadian immigration legislation and regulations, employers are required to provide foreign workers with pay and conditions of work that are substantially the same but not less favourable than those stated in the work permit application. You can view these responsibilities in our post about employer compliance: https://www.cilf.ca/2025/05/08/amps/.
Voluntary disclosures are a way for employers to address potential non-compliance before an inspection takes place. If non-compliance is found by Immigration, Refugees and Citizenship Canada (“IRCC”) or Employment and Social Development Canada (“ESDC”) in the context of a voluntary disclosure, penalties may be reduced by up to 4 points (violations are assigned types and points based on the severity of the violation). This may reduce the amount of an Administrative Monetary Penalty (“AMP”) against the employer if an AMP is issued. To be acceptable, a voluntary disclosure must be complete and at the time it is made, the employer must not be under an inspection and no enforcement action related to employer compliance must be taking place. Whether a voluntary disclosure is acceptable or not is also dependent on the severity of the impact of the violation on the foreign national, the severity of the impact of the violation on the Canadian economy or labour market, whether the disclosure was made in a timely manner, the number of times an acceptable voluntary disclosure has been made by the employer, and the nature of the condition with which the employer failed to comply.
Voluntary Disclosure Scenarios
Employers should be strategic regarding voluntary disclosures. Not everything needs to be disclosed to IRCC, and a voluntary disclosure can potentially trigger a wider compliance inspection. The stakes are even higher now that officers have the authority to cancel temporary resident visas and electronic travel authorizations (“eTAs”) if a work permit is refused, or a work permit if an administrative error is found. It is recommended that employers seek the advice of immigration counsel before they make changes to a foreign worker’s pay or conditions of work.
As discussed above, a voluntary disclosure may reduce a penalty when non-compliance is found. However, not all voluntary disclosures need to be made in situations of non-compliance. As a worker’s career progresses or there are changes in the employer’s business, increases in pay or promotions are commonplace. When the change in conditions is beneficial or neutral and not detrimental to the foreign worker, IRCC will usually not issue a finding of non-compliance. It is a good idea to file a voluntary disclosure in these situations so that the change is on file in case an inspection occurs later and IRCC questions why the conditions or pay do not match those provided in the initial application.
Such a situation could involve an increase in salary as this is beneficial to the worker.
When there is a change in job title, but the job duties still fall under the same National Occupational Classification (“NOC”) code that was provided in the initial application, this is also usually deemed to not be a violation.
When there is a minor progression in job duties such as an increase in people or areas of responsibility overseen by the worker, but the duties still fall under the same NOC code initially provided, this is typically fine. In this situation, it is also best to proactively provide a voluntary disclosure. A voluntary disclosure is such circumstances is especially beneficial in relation to an application for permanent residence as it ensures that all information and dates of employment and positions held align and that IRCC has a record of the information.
Another situation where the employer should consider a voluntary disclosure is when there is clarification over the location of work. For example, if one’s workplace moved from one city to another.
When a foreign worker no longer works for an employer, it is also a good idea to file a voluntary disclosure so that IRCC knows about the change. The work permit of the foreign worker is not cancelled, and the employer is not obligated to notify IRCC, but it is still a good idea to submit the voluntary disclosure in case of a future random inspection or an inspection as a result of a disgruntled employee who makes a complaint to IRCC. This will ensure the inspection covers the relevant period of employment.
Sometimes, an employer may need to reduce a worker’s pay or hours due to financial difficulty with the business. For example, during a global pandemic or reduced business from changing geopolitical situations or tariffs, an employer may need to reduce a worker’s hours or pay. When employers make changes that are detrimental to the foreign worker, this is usually non-compliant behaviour. However, if the change affects all workers and not just the foreign worker, such as reduced hours for everyone in a particular position, this may be found to be justified. These situations are complex and it is best for employers to engage immigration counsel to understand the consequences.
If you have any questions about employer compliance and voluntary disclosures, you can reach out to us for assistance. Our Canadian immigration legal professionals can be reached by phone (416-368-1111) or via email: caruso@cilf.ca; bonisteel@cilf.ca; ali@cilf.ca; mukherjee@cilf.ca; garciafialdini@cilf.ca.
