Foreign Workers in Alberta Scammed for Over $30K in Job Fees, Experts Warn

With Alberta experiencing record population growth, immigration experts are increasingly concerned about a prevalent scam targeting temporary foreign workers. Immigration lawyers, consultants, and agencies warn that workers are being charged illegal fees, sometimes exceeding $30,000, for job opportunities in the province.

The scam involves employers, immigration consultants, and recruiters who promise jobs to temporary foreign workers in exchange for hefty fees. They sell Labour Market Impact Assessments (LMIAs), which are federal documents required for hiring foreign workers. Although it’s illegal to charge for LMIAs under Canadian law, the practice persists due to a lack of enforcement and the workers’ desperation.

Anila Umar, CEO of the Centre for Newcomers, has witnessed the scam evolve over 30 years. She notes that many workers are unaware of the proper processes and fall victim to these fraudulent schemes. Alberta’s growing population has made it a new hotspot for such scams, previously more common in larger cities like Toronto and Vancouver.

The exploitation often continues after workers pay the fees. With permits tied to their employers, workers face further abuse, including salary clawbacks and threats of deportation. Calgary-based immigration lawyer Jatin Shory likens extreme cases to “pseudo-slavery,” with some workers paying up to $75,000 and facing various forms of mistreatment.

The federal government has introduced regulations to hold employers accountable, but enforcement remains weak. No employers have been fined for charging hiring fees since 2016, despite new regulations in 2022. The Canada Border Services Agency has taken action against some immigration consultants and unauthorized practitioners, but the problem persists.

Temporary foreign workers, like Sanajabin Sheikh, who paid $40,000 for a fraudulent job, often find themselves in dire situations. Sheikh’s job was nothing like promised, and she has since filed a civil claim against the employer and consultants.

Alberta’s ministry of jobs, economy, and trade reported a significant increase in complaints from temporary foreign workers, highlighting the growing issue. Immigration consultants like Steven Paolasini call for better government protections and a restructured system to prevent exploitation.

The federal government introduced a permit in 2019 for vulnerable workers to quickly exit abusive situations, leading to a 759% increase in open work permits issued by 2023. Experts urge the government to implement quicker investigations, larger penalties for non-compliant employers, and more resources for spot checks to combat the scam effectively.

Despite uncertainties, workers like Sheikh find hope in measures like the vulnerable open work permit, which she recently received, allowing her to seek new employment without the fear of exploitation.