Worker Exploitation at Canadian Tire: Temporary Foreign Worker Program
A Canadian Tire store is under investigation following allegations of mistreatment and financial exploitation of employees hired under Ottawa’s Temporary Foreign Worker (TFW) program. At least 13 employees resigned or were terminated in late 2023, with many of the employees alleging unilateral wage deductions, job duty changes, and threats of dismissal.
What is constructive dismissal?
These changes are typically considered constructive dismissal, meaning that the employer has dismissed the employee due to unilateral material changes to their employment without the employee’s consent. However, many employees are unable to fight against these changes due to their status as temporary foreign workers, which presents a difficult and unique working situation for workers in order to continue to stay in Canada.
How does the Temporary Foreign Worker Program work?
The TFW program allows Canadian employers to hire foreign workers to fill temporary jobs when qualified Canadians are not available. Employment and Social Development Canada (ESDC) through its Service Canada processing centres, assess applications from employers requesting permission to hire temporary foreign workers and conducts Labour Market Impact Assessments to determine the likely effect these workers would have on the Canadian labour market. The numbers of TFW workers approved to come to Canada have more than doubled since 2018 due to the program.
However, temporary foreign workers often experience abuse from their employers. A final report from the United Nations’ special rapporteur outlined that the TFW program creates a significant power imbalance between employers and employees as employees are linked to their employer through closed work permits, preventing them from working with other employers in Canada. Combined with the employees’ lack of information about their rights in Canada, employees are at a significant disadvantage in avoiding abusive situations without risking their livelihood in Canada.
What can temporary foreign workers do if they face mistreatment?
While the Canadian government has promised to make further changes to prevent further abuse, temporary foreign workers continue to face the risk of abuse due to the structure of the temporary foreign worker. If you are a temporary foreign worker who is experiencing difficulties in the workplace, including your employer making fundamental changes to your contract, please contact us for further information regarding your entitlements online or by phone at (416) 640-2667.