The class action – representing foreign workers including lead plaintiffs Prakash Basyal, Arthur Cajes, Edlyn Tesorero, and Bishnu Khadka – accuses Overseas of charging substantial fees for jobs purportedly arranged with Mac’s. The workers, having paid up to $8,000 in fees, arrived in Canada only to find that promised jobs were unavailable.
The class action seeks to hold Mac’s vicariously liable for Overseas’ alleged breach of fiduciary duty, arguing that Overseas acted as an agent of Mac’s in recruiting temporary foreign workers. Justice Sharon Matthews’ ruling on Nov. 1, 2024 addressed whether Mac’s could be liable for Overseas’ actions, and whether workers were required to mitigate losses by seeking other employment if promised jobs were unavailable.
Numerous groups have spoken up about how immigrants looking to land employment in Canada are being asked to pay tens of thousands of dollars by employers who are abusing TFWP.
Vicarious liability and worker vulnerability
Matthews found that Mac’s bore responsibility for recruitment activities conducted by Overseas under an unwritten agreement that allowed Overseas to act as Mac’s representative in recruiting and obtaining work permits for foreign workers. This agreement included pre-screening, candidate recruitment, and assistance with immigration paperwork.
“Mac’s appointed [Overseas] as its agent for recruitment and compliance with the TFWP, while acknowledging responsibility for Overseas’ adherence to federal and provincial recruitment laws,” Justice Matthews noted, based on evidence that Mac’s had attested in official documents to responsibility for Overseas’ compliance with laws governing recruitment.