Case Law
Job Offer Gone? Court Clarifies Employer Liability for Recruiter Actions

Job Offer Gone? Court Clarifies Employer Liability for Recruiter Actions

Citation
2025 BCCA 284
Decided
Court file
IMM-2643-23
Full judgment
Read the decision

Case Law Overview

Mac’s Convenience Stores Inc. v. Basyal, 2025 BCCA 284 (CanLII)

A group of temporary foreign workers (TFWs) came to Canada for jobs at Mac’s Convenience Stores. They alleged that the recruitment firm hired by Mac's, Overseas Immigration Services, charged them illegal fees. A subgroup of these workers also arrived in Canada to find the promised jobs did not exist.

Court Ruling

The B.C. Court of Appeal overturned the lower court's decision, finding that Mac's was not vicariously liable for the recruiter's alleged breach of fiduciary duty because the recruiter was not a true "agent" in the legal sense. The Court also ruled that the workers whose jobs disappeared did have a legal duty to mitigate their losses by trying to find alternative employment.

Key Quote from the Court

The court distinguished between the everyday meaning of "agent" and the strict legal definition, which is crucial for determining liability: In my respectful view, the judge fell into error in this case because the parties failed to clearly distinguish between agency at law and agency in common parlance. It is the former that is pleaded and relied on by the plaintiffs in the underlying action, and it is agency at law that they must prove. (at para 34)

Expert Takeaways

  • "Agent" Has a Strict Legal Meaning An employer is not automatically liable for a recruiter's misconduct. For liability to attach through "agency," the recruiter must have the power to legally bind the employer in contracts with a third party. Simply hiring a firm to perform recruitment tasks is not enough to create a legal agency relationship.
  • Understand Program Declarations Employers using the Temporary Foreign Worker Program (TFWP) sign declarations assuming responsibility for their recruiters' actions in complying with program rules. While this may not create vicarious liability for all wrongdoing, it creates significant regulatory risk and obligations.
  • Fixed-Term Contracts and the Duty to Mitigate In British Columbia, employees on fixed-term contracts who are terminated early have a duty to mitigate their losses. This means they must make reasonable efforts to find a new job. This duty applies even to TFWs who face significant practical barriers, such as employer-specific work permits.
  • The Contract is King The court noted that the employment contract itself contemplated the possibility of the worker changing employers. This express term made it impossible to imply a term that would remove the worker's duty to mitigate their losses. Clear and comprehensive contract terms are critical.

There is a deadline on this

15 days
if the decision was made inside Canada
60 days
if the decision was made outside Canada

That is the window to file an Application for Leave and for Judicial Review at the Federal Court, counted from the day you were notified of the decision. An extension can be requested, but it is granted at the Court's discretion - it is not automatic.

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Disclaimer

The information provided in this article is for general informational purposes only and does not constitute legal advice. Immigration law is complex and subject to change. For advice specific to your situation, please schedule a consultation with a qualified legal professional.

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Questions people ask after reading a case like this

Does this mean my own case will succeed?

No. Every application is decided on its own record. A reported decision shows how the Federal Court has reasoned about a particular kind of error - it does not predict the result of a different file. What it can tell you is whether the problem in your refusal is the kind of problem the Court has been willing to intervene on.

How long do I have to challenge a refusal?

Under the Immigration and Refugee Protection Act you generally have 15 days to file an Application for Leave and for Judicial Review if the decision was made inside Canada, and 60 days if it was made outside Canada, counted from when you were notified. The Court can extend that period, but an extension is discretionary - it is not automatic.

What actually happens at the Federal Court?

Judicial review has two stages. You file the application and a written record, and a judge decides on paper whether to grant leave - permission for the case to proceed. If leave is granted, there is a hearing. The Court does not re-decide your immigration application; it decides whether the officer's decision was reasonable and procedurally fair. If you succeed, the file is normally sent back to be decided again by a different officer.

Do I have to be in Canada to bring an application?

No. Applicants outside Canada regularly bring judicial review applications, which is why the longer 60-day deadline exists for decisions made abroad. Applicants are not normally required to attend in person.

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Ali Dadkhah

Written by

Ali Dadkhah

Ali Dadkhah is a litigator whose practice is dedicated to challenging government decisions at the Federal Court of Canada. He specializes in judicial review, providing a crucial avenue for recourse for individuals and businesses who have faced unfair or unreasonable administrative outcomes. Bilingual legal support in English and Persian (Farsi)

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