2 Companies In Canada Ordered To Pay $165K To Exploited Foreign Workers

Last Updated On 20 June 2025, 6:17 PM EDT (Toronto Time)

In a groundbreaking ruling, two Alberta-based companies in Canada have been mandated to repay nearly $165,000 to temporary foreign workers who were charged illegal fees for job placements at a Canadian Tire store in Etobicoke, Ontario.

The decision, issued by the Ontario Ministry of Labour on May 14, 2025, highlights the systemic vulnerabilities faced by temporary foreign workers in Canada.

This case sheds light on exploitative practices within the Temporary Foreign Worker Program (TFWP) and underscores the need for stronger protections for migrant workers.

As the companies appeal the ruling, the story of workers like Rowell Pailan, now residing in Nova Scotia, resonates as a call for justice and reform.

This article explores the details of the case, the broader implications for Canada’s labor market, and the ongoing fight for migrant worker rights.

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The Ontario Ministry of Labour’s investigation, sparked by complaints in October 2023, revealed that Allison Jones Consulting and AJ Immigration Group, both owned by Allison Jones and based in St. Albert, Alberta, charged temporary foreign workers exorbitant fees—up to $7,900 USD—for retail jobs at a Canadian Tire store.

These workers, primarily from the Philippines, were promised stable employment in Canada but faced underpayment and poor working conditions upon arrival.

The ministry’s employment standards officer, Charles Beauparlant, ruled that the fees violated federal and Ontario laws, which prohibit recruiters from charging foreign workers for job placements.

Rowell Pailan, one of the affected workers, shared his harrowing experience.

After borrowing money from family to pay the $7,900 fee, Pailan arrived in Canada in 2023 to work as a stock clerk supervisor.

Initially paid the agreed-upon wage, his earnings were later slashed, making it difficult to support his family in the Philippines or repay his debts.

The ministry ordered the companies to repay Pailan $10,655.52 CAD, including a 10% administrative fee, as compensation for the illegal charges.

Pailan, now living in Wolfville, Nova Scotia, expressed relief at the decision, stating, “I was so happy and teary-eyed, because finally I got justice.”

He hopes the ruling sends a message to employers not to exploit vulnerable newcomers.

Allison Jones, the owner of both companies, has denied the allegations and is appealing the ministry’s decision.

Jones argued that Allison Jones Consulting and AJ Immigration Group are “distinct legal entities” that operate independently.

She claimed that Allison Jones Consulting charged Canadian Tire for recruitment services, while AJ Immigration Group provided immigration services to workers, justifying the fees as legal under immigration consultancy regulations.

However, Officer Beauparlant rejected this defense, finding that the two companies shared “common management” under Jones’ leadership and operated as a “unified business.”

Evidence from employee emails and the companies’ websites, including a now-deleted claim on Allison Jones Consulting’s site describing Jones as the head of “one of Canada’s leading recruitment agencies and immigration consultancies,” supported this conclusion.

Beauparlant also noted that AJ Immigration Group’s practice of collecting fees in stages during the recruitment process indicated their direct involvement in job placement, further violating the law.

The companies were fined $2,000 ($250 per case for eight workers) and ordered to jointly repay the workers, ensuring no double payment.

Jones maintains that her businesses comply with all applicable legislation and trusts the appeal process to deliver a “fair and accurate resolution.”

This case highlights the precarious situation of temporary foreign workers in Canada, particularly those under the closed work permit system, which ties workers to a single employer.

This system leaves workers vulnerable to exploitation, as leaving an abusive job risks their legal status in Canada.

Chris Ramsaroop, an organizer with Justice for Migrant Workers and a University of Toronto instructor, criticized the system, stating, “These injustices will continue as a result of a system where we have workers tied to a particular employer.”

Ramsaroop also expressed concern that the burden of pursuing justice falls on workers, who often lack the resources or knowledge to navigate complex legal processes.

For Pailan, the fear of losing the repaid funds during the appeal process looms large.

“That amount is not a joke, it’s totally big,” he said, noting his ongoing struggle to repay family members who lent him the money.

The case also reflects broader issues within Canada’s Temporary Foreign Worker Program.

Recent data shows a surge in workers applying for Vulnerable Worker Open Work Permits, which allow those in abusive employment situations to leave their jobs.

In the first quarter of 2025, British Columbia issued 650 such permits, up from 40 in 2024, while Alberta and Quebec each issued 465, compared to 30 and 65, respectively, the previous year.

Ontario saw an 867% increase, with 435 permits issued.

The Canadian Tire store in Etobicoke, where the workers were employed, remains under investigation by both the Ontario Ministry of Labour and Employment and Social Development Canada (ESDC).

The store’s owner, Ezhil Natarajan, has denied the allegations of underpayment and mistreatment.

In response to earlier reports, Canadian Tire Corporation introduced a policy in fall 2024 prohibiting its franchised stores from using recruiters that charge fees to temporary foreign workers.

This decision, made in collaboration with its dealers, aims to curb exploitative practices.

However, posts on X suggest ongoing public scrutiny of Canadian Tire’s labor practices.

Some users have called for boycotts, citing allegations of widespread abuse within the Labour Market Impact Assessment (LMIA) system, which governs the hiring of temporary foreign workers.

These sentiments, while not conclusive evidence, reflect growing public concern about corporate accountability in Canada’s labor market.

The case comes amid heated debates about the Temporary Foreign Worker Program.

In May 2025, Conservative MP Jamil Jivani launched a petition to end the TFWP, arguing it suppresses wages and takes jobs from Canadians, particularly with youth unemployment reaching 14% in April 2025.

The Liberal government has defended the program, pointing to reforms like the 2025-2027 Levels Plan, which targets 82,000 temporary foreign workers (excluding seasonal agricultural workers) to address labor shortages.

Recent policy changes, effective May 27, 2025, allow temporary foreign workers with closed work permits to change employers more easily while awaiting new permits, a measure extended from a COVID-era policy.

Additionally, 2025 TFWP rules require 20% higher wages and stricter hiring conditions, reflecting efforts to balance worker protections with labor market needs.

In Alberta, where agriculture and tourism rely heavily on foreign workers, the province has introduced programs like the “Alberta is Calling” moving bonus and initiatives to transition temporary workers to permanent residency in sectors like hospitality.

These efforts highlight the province’s dependence on foreign labor, with 168,221 new residents added between Q1 2024 and Q1 2025.

For workers like Pailan, the journey to Canada was driven by hope for a better future.

Many sold assets or borrowed money to pay illegal fees, only to face exploitation upon arrival.

Pailan’s story resonates with many who have relocated to provinces like Nova Scotia, seeking better opportunities after escaping abusive workplaces.

His call for employers to stop taking advantage of newcomers underscores the need for systemic change.

Advocates like Ramsaroop argue that ending the closed work permit system is critical to preventing further exploitation.

Catherine Connelly, a professor at McMaster University, has also called for its abolition, citing its role in trapping workers in harmful environments.

The Ontario Ministry of Labour’s ruling against Allison Jones’ companies marks a significant step toward accountability for the exploitation of temporary foreign workers.

However, the ongoing appeal and investigations into Canadian Tire highlight the challenges of enforcing labor protections in a system that often leaves workers vulnerable.

As Canada grapples with labor shortages, rising unemployment, and immigration policy debates, stories like Pailan’s serve as a powerful reminder of the human cost of exploitation.

This case underscores the urgent need for reforms, such as ending the closed work permit system and strengthening oversight of recruitment practices.

By amplifying the voices of workers and advocates, we can push for a fairer, more equitable labor market in Canada.



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