This foreign worker says he paid his own wages for a cook position that didn't exist

This story is a collaboration between CBC News and the Investigative Journalism Foundation (IJF).

A national restaurant company is dropping one of its Ontario franchisees after a foreign worker alleges he paid his own wages for a cook position that didn't exist.

Quebec-based MTY Food Group says it has given Turtle Jack's Muskoka Grill in Oakville, Ont. — one of its branded restaurants — 90 days to "leave the [MTY] franchise system" after a joint investigation by CBC and its reporting partner the Investigative Journalism Foundation (IJF) shared allegations of an illegal payroll scheme at the restaurant.

MTY, which owns more than 50 Canadian brands — including Manchu Wok, Baton Rouge, Country Style and Mr. Sub — told CBC/IJF its team met with the franchisee and after "asking clear questions and not receiving clear answers," a decision was made to terminate the business relationship.

"The type of illegal practices and immoral behaviour described in the allegations you reported to us will not be tolerated by MTY under any circumstances," said Eric Lefebvre, the company's CEO, in an emailed statement.

MTY also told CBC/IJF that it is clear the owner of Turtle Jack's Oakville would not be owning one of their franchises again.

CBC/IJF obtained hundreds of documents that suggest the former Turtle Jack's employee was caught in a complex immigration scheme.

According to the documents, the man, who is an Indian national, flew into the country in late 2022 with the help of a regulated Canadian immigration consultant.

The man was issued a two-year work permit after presenting a letter from Service Canada confirming his employer was approved to hire two foreign workers as cooks, as well as a job offer signed by the restaurant's manager.

But WhatsApp exchanges between the worker, his employer and the consultant suggest that after he arrived in Canada, the man was not initially given any hours.

Instead, he says he was told to give his new employer about $3,000 a month in bi-weekly cash payments in order to be added to the restaurant's payroll, most of which would be paid back into his bank account. He would then be issued paystubs as proof of employment when he applied for permanent residency.

The worker quit in May 2024.

The Canada Border Services Agency (CBSA), which investigates immigration fraud, told CBC/IJF this type of arrangement is called "payroll cycling."

Payroll cycling involves the creation of fake documents, like paystubs, by a complicit employer or consultant on behalf of a foreign national. CBSA says it is often used when a foreign national obtains a work permit for a position that doesn't exist.