Tribunal upholds $5,000 wage order against company claiming not to be employer
The British Columbia Employment Standard Tribunal has rejected an appeal by one employer, ruling there was “no reasonable prospect the appeal will succeed,” and reaffirmed that the company was the legal employer of three former workers who filed wage complaints.
In its Jan. 29, 2025, decision, the Tribunal dismissed PBH Wellness’ attempt to overturn a June 2024 order from the Director of Employment Standards, which directed the business to pay $4,630.34 in unpaid wages plus interest, along with a $500 administrative penalty, to the workers.
The case centred on claims filed by former employees Sophie Stow, Selene Morales-Serrano, and Ana Mendes.
Previously, the Manitoba Labour Board dismissed an appeal by a worker who alleged unpaid wages and discrepancies in her record of employment (ROE).
While PBH Wellness sought to challenge the original ruling under section 112 of the Employment Standards Act (ESA), citing a breach of natural justice and overlooked evidence, the B.C. Tribunal found the arguments unpersuasive.
PBH Wellness sole director Gavin Henderson-Peal, who submitted the appeal, had been granted an extension due to serious medical issues, supported by documentation from multiple physicians. The Tribunal also accepted new evidence into the record.
However, Chair David Stevenson ruled that the director’s delegates acted appropriately and fairly.
“I find, on the information contained in the Record, that the process met the requirements of the statute and the principles of natural justice,” said Stevenson.
At the heart of the appeal was PBH Wellness’ contention that it was not the legal employer of the complainants.
The Tribunal strongly disagreed, pointing to the ESA’s wide-reaching definitions of “employer” and “employee.” The evidence showed that Henderson-Peal exercised control over the business’s finances, including wages, accounts payable, and general operations.
Based on this authority and oversight, the Tribunal determined PBH Wellness and its director had a direct employment relationship with the complainants.
It concluded there had been no error in the original assessment that held the company responsible for the wage payments.
“Pursuant to section 115(1) of the ESA, I order the Determination dated June 21, 2024, be confirmed in the amount of $5,130.34, together with any interest that has accrued under section 88 of the ESA,” said Stevenson.
From the 2017-2018 fiscal year to July 2024, employers owed workers in Ontario a total of $60 million unpaid wages, according to a previous report.
