Canada Warns Against Misclassifying Foreign Caregivers

By Tahani Elghazaly
Published September 20, 2026

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Employment and Social Development Canada has warned employers against classifying foreign in-home caregivers as independent contractors to avoid employment obligations, saying violations may lead to fines or bans from the Temporary Foreign Worker Program. The warning appears in guidance added on September 18, 2026.

When reviewing Labour Market Impact Assessment (LMIA) applications, Service Canada considers who pays wages, determines duties, working hours and location, supervises performance, signs the employment agreement and has the authority to hire or dismiss the worker.

Employers cannot reclassify workers after LMIA approval or structure the relationship to avoid payroll and program obligations. Applications will not be approved where no genuine employer-employee relationship exists.

The department said misclassification can undermine wage protections and bypass mandatory deductions for income tax, pensions and Employment Insurance. Both parties must sign an employment agreement specifying the job, wages and working conditions by the worker’s first day.

Hiring remains subject to immigration requirements. Under the Temporary Foreign Worker Program, recruiting home child care providers and home support workers from outside Canada is restricted to positions in Quebec. Workers already in Canada must meet the applicable eligibility and work-permit requirements.