MOOSE JAW, Sask.—A Saskatchewan business will stop using temporary foreign workers after pleading guilty to requiring a foreign worker to pay a fee to keep his job, in the province’s first conviction under its foreign-worker protection legislation.
Dhyan Jeny Enterprises Limited, which operates Guac Mexi Grill in Moose Jaw, appeared in Moose Jaw Provincial Court on Aug. 11 and pleaded guilty to one count under the Foreign Worker Recruitment and Immigration Services Act.
The Crown alleged that between Aug. 15, 2023, and Feb. 15, 2024, the company required a foreign worker, Parth Patel, to pay a fee or expense to continue working there, contrary to the act.
The use of temporary foreign workers (TFWs) has come under increased scrutiny in Canada amid elevated youth unemployment and concerns about the program’s impact on the labour market. The federal government has moved to reduce the number of temporary residents Canada admits, while the Conservatives have called for the TFW program to be scrapped.
The case marks the first time a person or company has been charged under Saskatchewan’s worker-protection legislation, either under the former Foreign Worker Recruitment and Immigration Services Act or the Immigration Services Act (ISA), which came into effect on July 1, 2024.
The ISA protects foreign workers from exploitation, provides oversight of foreign-worker recruiters, immigration consultants and employers, expands investigative and enforcement powers, and strengthens the province’s ability to address immigration-related fraud.
Crown’s Case
According to the agreed statement of facts presented in court, Patel worked at Guac Mexi Grill as a food supervisor from Jan. 17, 2022, to Feb. 15, 2024.
Patel filed a complaint against Dhyan Jeny Enterprises on March 18, 2024, accusing the company of harassment and unlawful employment practices, Crown prosecutor Jocelyn LeBlanc told the court.
The corporation took over the restaurant when the business changed ownership in August 2023, and then demanded that Patel pay a fee to continue working, LeBlanc said. His employer told him that they could sell his position for $25,000.
“Parth [Patel] was close to obtaining his permanent residency (PR), but still required the support of his employer,” LeBlanc noted.
Patel negotiated with his new employer to instead accept $12,000, with the company saying that if he failed to pay, they would terminate his job and inform Ottawa that his PR application was invalid, the Crown said.
Patel paid the fee in three equal installments. However, LeBlanc told the court that the new owners declined to retain Patel as an employee and that he never returned to the workplace after the business changed hands. The Crown alleged that, to create the appearance that he remained employed in support of his permanent residency application, the company issued him pay stubs but required him to reimburse the employer after each pay period.
“Saskatchewan is not a place for people to profit off the immigration system and to take advantage of foreign workers,” LeBlanc said.
“Approved foreign workers should be in Saskatchewan to contribute to legitimate business needs and not be manipulated as a pawn in an illegal scheme.”
LeBlanc noted that the Saskatchewan government introduced new legislation, the Immigration Services Act, on July 1, 2024, replacing a previous legislation. Since the company had been charged under the old legislation, the maximum fine the Crown could impose was much lower than the act recommended.
As part of a joint agreement, Dhyan Jeny Enterprises agreed to pay a $5,000 fine, a $2,000 victim fund surcharge, and $12,000 in restitution.
LeBlanc later told The Epoch Times that the maximum fine under the new legislation is $1.25 million and two years in jail. Under the previous legislation, the maximum fine was $100,000.
Similar cases involving the abuse of foreign workers could soon come before Saskatchewan courts, potentially going to trial, he said, adding that the case at hand was less serious than others of which he was aware.
Defence’s Case
Defence lawyer Bhavan Jaggi called the case a “unique matter in Saskatchewan,” as it was the first time charges had been laid under either act. However, he argued that the threat Patel faced of losing his job and permanent residency status was merely an “illusion.”
Whether the situation was simply an “administrative error” or the corporation actually took a fee from Patel, “immigration is a privilege,” Jaggi said, adding that federal and provincial legislation is in place to protect foreign workers and provide them with employment opportunities.
Jaggi suggested that the Saskatchewan government must impose stricter rules not just on employers, but also on employees, since numerous examples exist of foreign workers quitting their jobs after acquiring their permanent residency status.
“It has become an industry standard in Saskatchewan, which is kind of illegal, since it not only impacts employers but the whole of the Saskatchewan economy,” he said.
The corporation continues to operate Guac Mexi Grill, while it has committed to no longer employing TFWs, the defence lawyer added.
Patel declined to speak, only telling Judge Steven Schiefner that he has been working in Regina for the past 13 months.
‘Atrocious’ Conduct
The judge accepted the joint sentencing recommendation but expressed concern that the fine was too low and did not adequately “reflect the sentencing principles of denunciation and deterrence.” He pointed out that the Foreign Worker Recruitment and Immigration Services Act was intended to protect vulnerable workers from exploitation.
“I find the conduct of Dhyan Jeny Enterprises and its principals … atrocious,” the judge said, noting that provincial legislation is supposed to prevent the “common industry practice” of employers taking fees from foreign workers.
Schiefner acknowledged that provincial Crown prosecutors had not laid any charges under the previous legislation, so there was no “jurisprudential history” upon which the Crown could rely on. He said uncertainty also existed about the case’s outcome if it had gone to trial.
TFW Changes
The measure took effect April 1 and runs until March 31, 2027.
