Recruitment fees and recruiter licensing

Employers hiring temporary foreign workers can't charge or recover recruitment fees, and some provinces regulate or license recruiters.

Also called: recruitment fees, recruiter licensing, foreign worker recruiter licence, placement fees

What recruitment fees and recruiter licensing means

Recruitment fees are amounts charged to a worker to find, place or hire them in a job. In Canada, the federal rules for temporary foreign workers, and several provincial laws, say that workers must not pay these costs. The employer, who benefits from the hire, carries them.

Since amendments to the Immigration and Refugee Protection Regulations came into force in September 2022, employers hiring temporary foreign workers are prohibited from charging or recovering recruitment fees from those workers, and from using recruiters who charge or recover them. The employer must make sure any recruiter acting for it does not charge the worker, directly or indirectly.

Some provinces also regulate the recruiters themselves, for example by requiring a licence or registration to recruit foreign workers, or by requiring employers to register before hiring them. These rules differ by province and have changed in recent years.

How it works

Under the federal rules, the ban covers the period before and during employment. It includes fees for recruitment services, for help with a Labour Market Impact Assessment (LMIA), and the employer compliance fee. You also cannot recover the $1,000 LMIA processing fee from the worker. Workers still pay their own fees for temporary resident visas and work permits.

If a recruiter or employer has charged a prohibited fee, the employer can only justify it if it made all reasonable efforts to comply and then fully repaid the worker. Penalties under the Temporary Foreign Worker Program can reach $1 million a year, and employers can be banned.

Before you use a recruiter, especially one overseas, ask in writing what they charge workers, if anything, and get a written promise that they will not charge workers any fee. Check whether your province requires the recruiter to hold a licence or be registered, and whether you need to register as an employer before recruiting foreign workers.

Keep records of everything you pay for recruitment, including travel costs you are required to cover under some programs. If a worker tells you they paid a recruiter, take it seriously: look into it, and if a prohibited fee was charged, repay the worker and stop using that recruiter.

Recruitment fees and recruiter licensing by province

On top of the federal rules for temporary foreign workers, some provinces have their own rules on recruitment fees.

Where the work is done	The rule
Federal	Since September 2022, employers of temporary foreign workers may not charge or recover recruitment fees, and must make sure recruiters acting for them do not either.
Manitoba	A federal review of provincial approaches reports that Manitoba prohibits anyone engaged in recruitment from charging fees to workers.
Ontario	A federal review of provincial approaches reports that Ontario prohibits anyone engaged in recruitment from charging fees to workers.
Nova Scotia	Employers must not charge workers recruitment fees.

Recruiter licensing and employer registration rules for foreign worker recruitment were not confirmed for any province in this check; ask your provincial labour or immigration office before recruiting.

Example: A fish plant checks its recruiter

Paul runs a 35-person fish plant in Shelburne, Nova Scotia, and is using an overseas recruiter to find workers for an LMIA-based hire. Before signing, he asks the recruiter for a written statement that no worker will be charged any fee, and adds this to their contract.

When the workers arrive, Paul asks each one privately whether they paid anyone to get the job. One says he paid a fee to an agent. Paul repays the amount, documents the repayment, and ends his contract with the recruiter.

Onboarding checklists in Staffkin

Staffkin's onboarding checklists can include a private check-in on arrival, so you can confirm with each new worker that no one charged them to get the job.

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Free tools and guides for this

Questions about recruitment fees and recruiter licensing

Can a recruiter charge a temporary foreign worker a fee in Canada?

Not if they are recruiting for an employer using the federal temporary worker programs. Since September 2022, employers must make sure recruiters acting for them do not charge or recover recruitment fees from workers.

Can I deduct recruitment costs from a foreign worker's pay?

No. Employers may not recover recruitment fees or the LMIA processing fee from temporary foreign workers.

What fees does a temporary foreign worker still pay?

Workers still pay their own fees for temporary resident visas, temporary resident permits and work permits.

What if I find out a worker paid a recruiter?

Look into it. The federal rules let an employer justify the situation only if it made all reasonable efforts to comply and then fully repaid the worker.

Official sources

General information for Canadian employers, not legal advice. Rules differ by province and territory and change over time, so check with your provincial employment standards office (or the federal Labour Program if you are federally regulated) before you rely on it. See employment standards by province.

Checked against official sources on 4 November 2026.