Understanding the EPFNA: Why “Consultancy Fees” May Trigger Joint Liability for Employers, Recruiters, and Consultants

At Apuntar Legal Services, we are increasingly seeing a troubling pattern affecting foreign workers coming to Canada. Individuals are being asked to pay significant amounts—sometimes as high as $30,000—under the label of “consultancy fees” for visa or immigration services. On paper, these fees are presented as legitimate professional charges. In reality, however, they are often directly tied to securing employment in Canada.

This distinction matters because under the Employment Protection for Foreign Nationals Act, 2009 (EPFNA), charging recruitment fees to foreign workers is prohibited. Simply calling a fee something else does not change its legal character.

EPFNA Section 4(1): When Separate Entities Are Treated as One

A key provision of the EPFNA is section 4(1), which allows separate individuals or entities to be treated as a single employer or recruiter. This is particularly important in modern recruitment structures, where multiple parties are involved in bringing a worker to Canada.

It is common to see a recruiter identifying candidates abroad, an immigration consultant handling documentation, and a Canadian employer ultimately offering the job. While each party may appear independent, the law looks at the substance of the relationship rather than its form. If they are working together in a coordinated way to recruit and employ a foreign national, they may be treated as one.

Section 4(4): Joint and Several Liability

This framework is reinforced by section 4(4 of the Act, which imposes joint and several liability. In practical terms, this means that all parties involved in the recruitment and employment process can be held responsible for any violations of the Act and for any money owed to the worker.

A foreign worker does not need to untangle who did what. They can pursue recovery from any one of the parties involved, whether it is the employer, the recruiter, or the consultant. This ensures that liability cannot be avoided simply by dividing roles across multiple entities.

The “Consultancy Fee” Problem

These provisions are especially relevant in situations where “consultancy fees” are used to disguise what are, in substance, recruitment fees. The typical arrangement involves a consultant charging a large fee for visa processing while coordinating closely with a recruiter and employer.

The worker understands that payment is necessary to secure the job. The job offer, immigration process, and payment are all interconnected. Despite contractual language attempting to separate these elements, the reality is that they form a single transaction centered on employment. Under the EPFNA, the law will look beyond labels and examine the true nature of the arrangement.

Why Employers Benefit from These Arrangements

From the employer’s perspective, this structure can be financially advantageous. Costs that would normally be borne by the employer—such as recruitment expenses, immigration processing, and even airfare—are effectively passed on to the worker.

This shifts the financial burden onto individuals who are often in vulnerable positions and eager to secure opportunities abroad. However, the EPFNA is specifically designed to prevent this type of cost-shifting and to ensure that foreign workers are not exploited through indirect fee arrangements.

Your Right to Recover

What many workers do not realize is that they may have a legal right to recover these amounts. When sections 4(1) and 4(4) are applied together, the law cuts through artificial distinctions between entities and focuses on the reality of the arrangement.

If multiple parties collaborated in recruiting a worker and facilitating their employment, they can all be held accountable. The fact that the payment was made to a “consultant” does not shield the employer or recruiter from liability.

For foreign workers, this means that paying a large “consultancy fee” does not automatically make it lawful. If the fee is connected to obtaining employment in Canada, it may fall within the scope of prohibited recruitment fees under the EPFNA. In such cases, there may be a basis to seek repayment and damages.

How Apuntar Legal Services Can Help

At Apuntar Legal Services, we are committed to helping foreign workers understand and enforce their rights. Many individuals are unaware that the law offers strong protections against these practices.

By examining the full context—contracts, communications, and the relationships between the parties involved—it is often possible to uncover a coordinated structure that the EPFNA is designed to address. Understanding how joint liability works under the Act is essential. It ensures that responsibility cannot be avoided through clever structuring or carefully worded agreements.

If you have paid significant fees as part of securing employment in Canada, it may be worth taking a closer look. The label attached to the payment is not the final word—the law looks at the reality behind it.