Two kitchen workers charged with human trafficking in Ontario

An Ontario tribunal has upheld the indefinite suspension of an Oakville restaurant’s liquor licence after finding the business knowingly tolerated illegal employment practices that exploited vulnerable migrant workers and failed to ensure a safe workplace.

In a Dec. 19, 2025 decision — 1849428 Ontario Inc. o/a August 8 Oakville v. Registrar under the Alcohol and Gaming Commission of Ontario Act — Licence Appeal Tribunal adjudicator Rebecca Hines ruled it was “necessary in the public interest” to maintain the Immediate Suspension Order (ISO) imposed on the employer.

The restaurant is one of eight August 8 franchises in the Greater Toronto Area, employing about 300 people, and has held a liquor licence since 2013.

Human trafficking charges, physical and emotional abuse

Hines’ ruling followed the arrest on June 11, 2025 of two senior kitchen employees — WL, the head chef, and RXY, the kitchen manager — who were charged with human trafficking involving three Mexican nationals employed as kitchen staff. They also face related charges, including benefiting from the proceeds of crime, while WL was additionally charged with sexual assault. Those criminal matters remain before the courts.

Although no criminal charges were laid against the owners, Hines emphasised that, from a regulatory and employment‑control standpoint, the licence‑holder remained accountable for conditions at the workplace and in employer‑arranged housing. “The owner of the appellant ought to have known what was occurring on the appellant’s premises,” she wrote, adding that he “had an obligation to ensure that the appellant’s management were operating the business lawfully.”

Evidence from Detective Constable Paul Cavan described how three Mexican workers reported responding to a Facebook advertisement, being hired by RXY — whom they believed to be the owner — and being promised cash wages of $14 to $16 per hour, $18 for overtime, three daily meals and room and board.

According to the decision, they said they were “forced to work long hours, sometimes 18 days in a row and were so busy they did not have time to eat,” and alleged “physical and emotional abuse by WL,” including the sexual assault of one victim. Complaints to RXY were allegedly dismissed.

The workers were housed in a room divided into three sections with plywood dividers “with holes in it” and a mattress on the floor, with no locks on the door. WL lived in the same house with a lock on his room and was alleged to have used surveillance cameras to monitor them. Police also found 12 other employees living in the home, three of whom did not have legal status to work in Canada, and seized substantial amounts of cash from both the restaurant and from RXY’s residence.

On the civil standard of proof, Hines concluded that “the victims were exploited in their employment and were subjected to abusive conduct by WL and unlawful working conditions by RXY.”

Previously, the RCMP arrested two individuals for illegally recruiting foreign workers and a third for human trafficking.

Admission of illegal practices

The Ontario tribunal placed particular weight on admissions by August 8 owner and director Jie Ning Rong about the restaurant’s employment practices. Rong testified that he knew the business had employed people without legal work permits, that some staff were being paid below minimum wage, and that employees were paid in cash.

Hines found “the appellant was benefiting financially from paying employees below the minimum wage, and by not having to pay taxes such as CPP, EI and workers compensation for undocumented workers,” and concluded that by allowing these practices “the appellant took advantage of its employees and left them vulnerable to exploitation.”

Rong told the tribunal that after the arrests, the company terminated WL and RXY on June 17, 2025, issued a public statement declaring zero tolerance for illegal activity and employee misconduct, and posted the statement at all August 8 locations. Termination letters dated June 17, 2025 were submitted for both men.

However, Alcohol and Gaming Commission of Ontario (AGCO) inspector Stana Gavric testified that during a visit on July 30, 2025, Rong acknowledged that RXY had not actually been terminated and was still doing maintenance work at another August 8 location in Toronto, with plans to end his employment later. Hines found that the public statement “demonstrates a lack of honesty and integrity because it indicated that the two employees subject to criminal charges had been terminated even though RXY continued to work at the Toronto location.”

She said it was “irrelevant” that his duties had changed, because “the public statement said that he had been terminated,” and concluded his continued presence showed the company was not taking the allegations seriously.

Previously, three Ontario-based employers were fined a combined total of $450,000 for employing foreign nationals without proper authorisation to work in Canada.

Policies, suspension

August 8 also pointed to health and safety training and workplace harassment and violence policies dated January 2025, supported by employee sign‑off sheets. Rong and general manager Desmond Yao testified that the business had hired an external human resources consultant, implemented mandatory training, required written employment contracts and proof of legal work permits, moved away from cash payments, and designated internal representatives and a third‑party HR contact for complaints.

Hines was not convinced these measures adequately addressed the risks. She noted the policies pre‑dated the June 2025 incident and, after reviewing them, wrote that “it is unclear to me who an employee at August 8 should go to if they experience harassment or violence in the workplace,” because the documents did not name the third‑party HR contact or identify the employer and employee representatives. She found Rong’s limited understanding of the policies and of any updates after the incident “shows a lack of genuine care and control in ensuring the future safety of the appellant’s employees,” and described Yao’s evidence about post‑incident changes as vague.

Meanwhile, the company argued that the ISO was disproportionate, citing its clean liquor licensing record since 2013 and asking that the suspension be converted to a 90‑day penalty from October 10, 2025 to January 10, 2026.

The Registrar opposed any reduction. AGCO senior manager Rebecca Castillo testified that immediate suspensions are rare and said this was among the most serious cases she had seen in over 20 years, adding that the risk to employees “still exists and has not been properly mitigated.”

Hines acknowledged that August 8 Oakville had “no history of infractions and no record of breaking the law” before June 2025, but concluded that, “based on the unique facts of this case… I am not satisfied that the licensee will exercise sufficient control, either directly or indirectly over the premises to ensure public safety.”

She added: “I am not satisfied that the appellant has taken the proper steps to protect the safety of its employees in the future. For all the above reasons, I uphold the suspension.”