Enforcement and penalties

Make payment

If an employer has not followed the Employment Standards Act or Regulation and has been ordered to pay wages, they also need to pay the following:

Interest on the amount of unpaid wages an employee is owed, calculated from the earlier of:

• The date of the employee's termination or
• The date the complaint was filed

Interest accrues until the date of payment. The interest rate is the prime lending rate used by the provincial government's bank.

Penalties or fines:

• $500 for the first time an employer doesn't follow the Act or Regulation
• $2,500 for not following the same requirement at the same location within three years of the first contravention
• $10,000 for not following the same requirement at the same location within three years of the second contravention

A bond, irrevocable letter of credit or other type of security may need to also be provided by an employer if they've failed to pay wages. This can be used if they fail to pay wages to their employees again in the future.

Collecting payment

If an employer doesn't pay the wages and penalties they owe, the Employment Standards Branch will take other action to collect the amounts owed.

Unpaid wages constitute a lien against the property of the employer. The lien takes effect at the time the wages were earned. This type of lien takes priority over all other legal claims, including a claim of the provincial government, with the exception of a prior-registered mortgage or debenture against land.

Demand payment from a third party. If a third party owes or will owe money to an employer who is required to pay money under a determination, they may be required to pay the money they owe directly to the Employment Standards Branch. If they do not, the Employment Standards Branch may take collection action against the third party.

Seize assets, like a bank account, to cover the money owed. This includes the cost of seizing the assets. A court bailiff might be assigned to seize the assets and will also recover bailiff costs in accordance with the Court Order Enforcement Act.

Register a Certificate of Judgment against land owned by an employer. If an employer owes wages and penalties under a determination, settlement agreement or order, this certificate would prevent them from selling or mortgaging their property until they pay the money they owe.

Payments for corporations

A director or officer of a corporation is personally liable for unpaid wages if they were in their position when wages were earned or payable. They may be required to pay a maximum of two months’ unpaid wages per employee.

Directors and officers are not liable for:

• Compensation for length of service or group termination pay if the corporate employer is in receivership – unless the Director of Employment Standards issues a determination ordering a director or officer to pay wages before the date of receivership
• Wages, compensation for length of service or group termination pay if the corporate employer is the subject of a bankruptcy or insolvency proceeding – unless the Director of Employment Standards has issued a determination ordering a director or officer to pay wages before the date of the bankruptcy or insolvency proceeding
• Vacation pay that becomes payable after the director or officer leaves office
• Money that remains in an employee’s time bank after the director or officer leaves office

A director or officer may also have to pay penalties if they authorize or allow the corporation to not follow the Employment Standards Act or Regulation.