A Toronto Canadian Tire owner, Ezhil Natarajan, was fined over $100,000 by the federal government for violating Temporary Foreign Worker (TFW) program rules. Natarajan is also under provincial investigation for alleged exploitation of foreign workers.

Employment and Social Development Canada (ESSC) found Natarajan violated TFW program rules by not matching pay or working conditions to job offers and assigning workers to different roles than hired. Specific details of violations were not provided, according to the Globe and Mail.

Last year, 13 foreign workers at the store resigned or were fired by Natarajan, alleging wage reductions and unhired job assignments. ESDC officials were already investigating Natarajan.

Go Ad Free

Canada's TFW program is a key immigration route, particularly for agriculture and retail. Employers must justify foreign hires via Labour Market Impact Assessment (LMIA) applications, proving domestic labour shortages.

While Ottawa expanded program access post-pandemic, leading to a surge in LMIA approvals (2022-2024), eligibility criteria have since been tightened to reduce temporary residents.

Ottawa now denies temporary foreign worker applications in major cities with over 6% unemployment, a rule in effect since last September. Exemptions include agriculture, construction, health care, and short-term jobs (under 120 days). 

Natarajan, found non-compliant with the TFW program in July, owes a $111,000 penalty and is ineligible for the program. The decision is public on ESDC's website.

Federal data indicates that Geethaezhil Inc., Natarajan's Canadian Tire, was approved to hire 34 TFWs from 2022-2024. Employers can hire low-wage temporary workers for up to 10% of their workforce (20% in healthcare, construction, and food manufacturing).

TFW permit applications, especially for low-wage streams, dropped by 50% overall and 70% in the low-wage stream since September 2024. Non-compliance fines, however, rose from $2 million in 2023-24 to $4.9 million in 2024-25.

With high national youth unemployment, political pressure mounts on the temporary foreign worker program, which comprises about 1% of the national workforce. Conservatives recently called for its termination.

Current TFW program rules also mandate new LMIAs and work permits for job duty or wage changes, tying workers to one employer, a system often criticized for fostering exploitation by hindering job changes.

Rowell Pailan, a former employee of Natarajan, claims his wages were cut from $20 to $16.55 per hour after a demotion from supervisor to shelf stocker. While employed there, he worked in a different role without a new work permit.

Another worker stated in his application that Natarajan frequently threatened to reduce hours and pay if employees did not comply, a claim corroborated by others. The worker remains anonymous due to fear of repercussions, according to the Globe.

Natarajan remains under investigation by Ontario's Ministry of Labour, which confirmed no decision has been made.