This foreign worker says he paid his own wages for a cook position that didn’t exist

This story is a collaboration between CBC Information and the Investigative Journalism Basis (IJF).

A nationwide restaurant firm is dropping considered one of its Ontario franchisees after a international employee alleges he paid his personal wages for a prepare dinner place that did not exist.

Quebec-based MTY Meals Group says it has given Turtle Jack’s Muskoka Grill in Oakville, Ont. — considered one of its branded eating places — 90 days to “go away the [MTY] franchise system” after a joint investigation by CBC and its reporting companion the Investigative Journalism Basis (IJF) shared allegations of an unlawful payroll scheme on the restaurant.

MTY, which owns greater than 50 Canadian manufacturers — together with Manchu Wok, Baton Rouge, Nation Model and Mr. Sub — instructed CBC/IJF its workforce met with the franchisee and after “asking clear questions and never receiving clear solutions,” a call was made to terminate the enterprise relationship.

“The kind of unlawful practices and immoral behaviour described within the allegations you reported to us is not going to be tolerated by MTY beneath any circumstances,” stated Eric Lefebvre, the corporate’s CEO, in an emailed assertion.

MTY additionally instructed CBC/IJF that it’s clear the proprietor of Turtle Jack’s Oakville wouldn’t be proudly owning considered one of their franchises once more.

Eric Lefebvre, CEO of MTY Meals Group, says the ‘illegal practices and immoral behaviour’ described within the allegations in opposition to Turtle Jack’s Oakville ‘will not be tolerated by MTY under any circumstances.’ (Andreas Wesley/CBC)

CBC/IJF obtained hundreds of documents that suggest the former Turtle Jack’s employee was caught in a complex immigration scheme.

According to the documents, the man, who is an Indian national, flew into the country in late 2022 with the help of a regulated Canadian immigration consultant.

The man was issued a two-year work permit after presenting a letter from Service Canada confirming his employer was approved to hire two foreign workers as cooks, as well as a job offer signed by the restaurant’s manager.

But WhatsApp exchanges between the worker, his employer and the consultant suggest that after he arrived in Canada, the man was not initially given any hours.

Instead, he says he was told to give his new employer about $3,000 a month in bi-weekly cash payments in order to be added to the restaurant’s payroll, most of which would be paid back into his bank account. He would then be issued paystubs as proof of employment when he applied for permanent residency.

The worker quit in May 2024.

WATCH | Alleged illegal payroll scheme at Ontario restaurant:

Temporary foreign workers targeted by costly online immigration schemes

As Canada tightens its path to permanent residency, more immigration schemes are appearing online, offering fake jobs to foreign workers in exchange for up to $45,000.

The Canada Border Services Agency (CBSA), which investigates immigration fraud, told CBC/IJF this type of arrangement is called “payroll cycling.”

Payroll cycling involves the creation of fake documents, like paystubs, by a complicit employer or consultant on behalf of a foreign national. CBSA says it is often used when a foreign national obtains a work permit for a position that doesn’t exist.

Under the Immigration and Refugee Protection Act (IRPA), payroll cycling is a form of misrepresentation, which is illegal for all involved — both the workplace involved in the scheme and any worker who participates in it. Migrants caught misrepresenting themselves, and anyone who advises them to do so, can face fines of up to $100,000 and up to five years of imprisonment.

Inderjit Lamba, the general manager at Turtle Jack’s Oakville to whom the foreign worker alleges he made the payments, declined multiple interview requests from CBC/IJF. In an email, Lamba wrote that the allegations by the “former employee” are “unproven, unsubstantiated, and are denied.”

CBC/IJF has reached out to Daljeet Lamba, who is listed as sole director of the corporation operating the Turtle Jack’s Oakville franchise, according to Ontario corporate records. CBC/IJF did not receive a response at this time.

Service Canada, the agency responsible for overseeing the temporary foreign worker program and investigating non-compliant employers, has confirmed it is “conducting compliance activities” at Turtle Jack’s Oakville.

In a statement, Inderjit Lamba wrote that Service Canada has “not at this time informed us of any violations, or negative findings whatsoever.”

Inderjit Lamba, the general manager of Turtle Jack’s Muskoka Grill in Oakville, Ont., says the allegations by his former worker are ‘unproven, unsubstantiated, and are denied.’ (WhatsApp)

Months of funds

CBC/IJF reviewed WhatsApp messages, financial institution statements, paystubs, work schedules, emails and immigration paperwork spanning the employee’s arrival in Canada up till this summer time. The paperwork reveal the employee made a collection of funds to the employer over a interval of 16 months.

Common e-transfers, money withdrawals and paystubs throughout that point seem to align with the dates and quantities the employee was requested to pay the employer by way of WhatsApp messages.

In these messages, written in a mix of Punjabi, Hindi and English, the international employee was instructed by his immigration marketing consultant to make money funds of $1,471.53 to his employer each second Tuesday starting in January 2023. (Obtained by CBC/IJF)

For instance, on a Friday in late January 2023, a couple of weeks after the employee landed in Toronto, his immigration marketing consultant instructed him to make money funds of $1,471.53 “each two weeks,” beginning “this Tuesday.”

Financial institution statements present money withdrawals totalling $1,500 that Monday. The following day, the employee acquired a direct deposit of $1,095.96 from “MTY,” which seems to be a fee from MTY Meals Group, the franchisor.

The quantity of the direct deposit corresponds with the take-home pay on his paystub, however the money withdrawals exceed the gross pay of $1,331.20 for that cycle.

On Jan. 24, 2023, $1,095.96 was deposited into the employee’s checking account by MTY. The day earlier than, he withdrew a complete of $1,500 from ATMs. (Obtained by CBC/IJF)

A WhatsApp message despatched a couple of weeks later seems to point out Inderjit Lamba threatening to take the employee off payroll over a late fee — which might jeopardize his possibilities of gaining everlasting residency, as his closed work allow didn’t enable him to be employed elsewhere.

“In case you are not right here at present, I’ll finish the pay,” Lamba wrote forward of one of many money drop-offs.

Additional textual content messages obtained by CBC/IJF counsel at the very least one different particular person was making related funds to the identical employer.

A message from Feb. 24, 2023, that seems to be from Lamba tells the immigration marketing consultant that the previous Turtle Jack’s worker “nonetheless has not dropped this final Tuesdays [sic] fee,” whereas one other one that additionally appears to be a short lived international employee is “brief.”

In a textual content that seems to be from the employer to the immigration marketing consultant, Lamba says the international employee is late on his fee whereas one other particular person’s fee was ‘short,’ suggesting at the very least one different international employee was making funds to him by way of the identical marketing consultant. (Obtained by CBC/IJF)

WhatsApp screenshots from February 2023 counsel that after the employee stated he could not afford to make the funds with out being given work hours, Inderjit Lamba referred him to an employment company to “assist with work” beneath the desk for money.

Time sheets and messages counsel the employee was lastly given his first shift at Turtle Jack’s Oakville in March 2023 and labored part-time as a prepare dinner for greater than a yr. Though his title solely seems subsequent to weekend shifts within the restaurant’s time sheets, his paystubs continued to point out him being paid as if he was working full-time.

Earlier than his first shift, the international employee was requested by Inderjit Lamba to “convey fee with you as nicely,” in keeping with WhatsApp messages. He was later instructed to ask a back-of-house supervisor for an envelope, put the cash inside after which ask the back-of-house supervisor to position it in a field with Lamba’s title on it.

The employee was given shifts at Turtle Jack’s Oakville for the primary time in March 2023. In a WhatsApp change, Lamba reminds the employee to ‘bring payment’ with him to his first shift. (Obtained by CBC/IJF)

Concerning MTY’s latest actions in opposition to Turtle Jack’s Oakville, Inderjit Lamba instructed CBC/IJF in a subsequent e-mail that the restaurant “has not reached any mutual settlement with the franchise mother or father firm.” Somewhat, he claimed that MTY stated “ought to CBC air its story, it shall unilaterally determine to not renew our Franchise settlement.”

When requested about this, MTY reiterated the franchisee was “clearly knowledgeable that we’ll not renew his franchise settlement and that he’ll go away the MTY’s franchise system following our 90-day discover.”

Toronto immigration lawyer Elizabeth Lengthy stated payroll biking schemes are ‘completely illegal’ and ‘a fraud upon the system.’ (Submitted by Elizabeth Lengthy)

‘A fraud upon the system’: lawyer

After being offered with these allegations, Toronto immigration lawyer Elizabeth Lengthy referred to as the state of affairs “utterly unlawful” and “a fraud upon the system.”

Past the alleged payroll biking scheme, the Indian nationwide seems to have additionally been charged different unlawful charges earlier than even coming to Canada.

In a WhatsApp change months earlier than his arrival, his immigration marketing consultant quoted him $50,000 for a path to everlasting residence, to be paid in 5 instalments.

Certainly one of these funds was a charge for “LMIA approval,” referring to a Labour Market Influence Evaluation, a doc issued by the federal authorities that permits employers to rent short-term international staff once they can’t discover certified Canadians or everlasting residents for a job.

The value tag is much like LMIA-supported positions marketed for money by on-line sellers additionally uncovered by the CBC/IJF investigation.

Immigration legal professionals say the marketing consultant’s quoted charges of $50,000 far exceeds what any official immigration adviser would cost for related providers. (Obtained by CBC/IJF)

$15K in money for employer

CBC/IJF confirmed Calgary-based immigration lawyer Jatin Shory the WhatsApp messages breaking down the prices quoted to this international employee. The $50,000 included $15,000 that the marketing consultant instructed him to pay — in money and meant for his future employer — earlier than leaving India.

“It is disgusting. Fifty thousand {dollars} — that makes completely no sense,” Shory stated.

The employee says he paid $45,000 of the $50,000. CBC/IJF have been capable of confirm some however not all of those funds.

On this WhatsApp change in Punjabi, the international employee asks his immigration marketing consultant if he ought to make his subsequent fee by financial institution switch or money. In response, the immigration marketing consultant tells him that the ‘employer needs to be given cash.’ (Obtained by CBC/IJF)

Shory referred to as it a “joke” that consultants can get away with charging such excessive charges. Moreover, all LMIA-related prices incurred within the means of recruitment or hiring, legal professionals stress, ought to be charged to the employer, not the international employee.

“The LMIA just isn’t allowed to be charged to the applicant, to the worker,” stated Lengthy.

Anybody who charges staff for an LMIA is “breaking the legislation and benefiting from weak individuals,” Employment and Social Improvement Canada (ESDC) stated in an announcement.

Lengthy stated international staff could also be tempted to take part in these schemes as a result of if they’ll show Canadian work expertise, “their possibilities for getting everlasting residence is a lot greater.”

Calgary immigration lawyer Jatin Shory referred to as the immigration marketing consultant’s charge of $50,000 ‘disgusting.’ He stated all LMIA-related prices ought to be charged to the employer, not the international employee. (Submitted by Shory Legislation LLP)

Moreover being a method for international nationals to legally work in Canada, LMIAs increase foreigners’ possibilities of acquiring everlasting residency, as a result of they add extra factors to the eligibility rating wanted for a profitable utility.

However she defined {that a} migrant on this state of affairs would even be misrepresenting their work expertise to immigration authorities, making them complicit in against the law beneath the IRPA and inserting them at better danger of deportation if found.

“That is principally what numerous determined individuals are doing so as to have the ability to keep and get everlasting residence,” Lengthy stated.

LMIAs could turn into much more invaluable within the close to future after the federal authorities introduced final Thursday that it could be slashing the variety of everlasting residency spots beginning subsequent yr. The transfer will make the race for everlasting residency much more aggressive for the two.8 million short-term residents at present dwelling in Canada.

Rise in permits for weak staff

The international employee has since been granted an open work allow for weak staff by the Canadian authorities, by way of a program began in 2019 that gives a pathway for short-term international staff who’ve been abused or are susceptible to office abuse to search out work with different employers.

Tatjana Boxhorn, an Alberta-based regulated Canadian immigration marketing consultant, says she has filed greater than 800 profitable professional bono purposes for weak migrants, and “just about each single one” concerned victims of comparable LMIA schemes.

She stated federal authorities all learn about these schemes, however “no one does something about it.”

“I’ve one explicit employer that I’ve reported with 17 short-term international staff. Seventeen. And so they’re nonetheless getting LMIAs,” stated Boxhorn.

“Frankly, they’re … actually permitting fashionable slavery to happen.”

WATCH | ‘Everyone is conscious’ of abuse, says immigration marketing consultant:

There may be ‘a lot abuse’ of short-term international staff, says immigration marketing consultant

Canada is ‘permitting fashionable slavery’ by not addressing fraud throughout the short-term international employee program, says Tatjana Boxhorn, a regulated Canadian immigration marketing consultant who has filed tons of of purposes to permit weak migrants to flee office abuse.

Boxhorn stated as a result of LMIA-approved positions are tied to at least one particular employer, abuse is rampant, including that even after being granted an open allow and leaving their employer, some staff are nonetheless too afraid to report the fraud to authorities.

“I’ve seen a big selection of abuse occurring, from psychological to financial to sexual abuse,” she stated.

Due to these issues, Boxhorn says wanting on the variety of open work permits granted is the most effective indicator of weak staff within the nation.

In line with figures supplied by Immigration, Refugees and Citizenship Canada, the variety of weak open work permits granted to international staff has greater than tripled, from 589 in 2020 to 2,036 in 2023.

To this point in 2024, greater than 2,700 of those permits have been granted — probably the most in any yr because the permits have been launched.

As for individuals who function these schemes, 153 people in roughly 80 circumstances have been charged for “unauthorized consultant-related offences” within the final 5 years, CBSA wrote in an announcement. Most offenders, it stated, have been Canadian residents or everlasting residents.

ESDC has penalized 135 employers of international nationals for non-compliance up to now yr. The best monetary penalty ever imposed on an employer was $365,700 in April, in opposition to a New Brunswick fish processing plant.