Ontario Seeks Heavy New Fines for Employers Who Withhold Workers’ Passports

Migrant workers harvest strawberries at a farm near Oxnard, Calif. Joe Klamar/AFP via Getty Images

Under new labour laws introduced on March 20, Ontario employers convicted of withholding foreign workers’ passports or work permits could face the highest maximum fines in Canada.

“My message to those scumbags out there abusing migrant workers is this: you can run, but you can’t hide. We will find you, fine you, and put you behind bars,” Ontario Labour Minister Monte McNaughton said during a March 20 press conference.

“While most employers care about their workers, some continue to take advantage of them, including illegally holding their passports and work permits. This obviously leaves workers vulnerable [to exploitation],” he added.

Under the proposed Working for Workers Act, 2023 legislation, individuals convicted of taking possession of or retaining a foreign national’s passport or work permit could face either a fine of up to $500,000, up to 12 months’ imprisonment, or both. Corporations convicted could be fined up to $1 million.

McNaughton said offenders could be penalized $100,000 to $200,000 for every worker whose rights were violated, “quickly adding up to millions of dollars more in fines.” Ministry officers currently have the power to levy penalties for each passport or work permit a business or person withholds, but those fines range only from $250 to $1,000.

“If you think you’re going to deny someone’s basic human rights by withholding their passport, we’re going to hit your pocketbook, and you will be behind bars for a long time,” McNaughton said in a press release.

The Ontario government is also proposing amendments to the Occupational Health and Safety Act (OHSA) that would increase the maximum fine for corporations convicted of an offence under that act from $1.5 million to $2 million. With these amendments, Ontario would have the highest maximum corporate fine under workplace health and safety legislation in Canada.

In April 2022, the Ontario government raised the maximum fine for corporate directors and officers from $100,000 to $1,500,000, while also increasing the maximum fine for all other individuals, from $100,000 to $500,000.

McNaughton said the increased fines will assist the Ontario ministry of labour’s new anti-trafficking unit, launched 18 months ago to fight labour trafficking in the province. McNaughton said that there are now about 45 investigations ongoing and that lost wages for more than 3,000 workers have been recuperated.

The announcement of the proposed legislation comes just over two weeks after York Regional Police arrested five people and issued arrest warrants for two more, after disrupting a human trafficking ring that was enticing Mexican nationals into Canada and then exploiting them for their labour. A total of 64 Mexican nationals were rescued during the operation.