Foreign Workers' Class Action Suit against a Canadian Restaurant

Have you been hiring foreign workers the past few years or considering doing so now? A suit has been filed against Denny's recently by a group of foreign workers. One worker fired has been compensated, while other aspects of the 10-million class action suit are pending.

As Tom Sanborn wrote for the Tyee, "In Reasons for Determination on a complaint against the company that operates Denny's Restaurants across western Canada, Amanda Clark Welder, delegate for BC's Director of Employment Standards, has ruled that the firm, Northland Properties Corporation, operating as Dencan Restaurants Inc., fired Alberto Sales, a temporary foreign worker from the Philippines, at least in part because he had contacted the Employment Standards Branch.

This ruling follows the ten million dollar class action suit filed recently against the Denny's operators by fifty temporary foreign workers who allege the company did not live up to its legal obligations to them.

The Employment Standards ruling, issued April 29, rejects Denny's claims that Sales had been terminated because of performance issues. It requires the firm to pay Mr. Sales $6,617.06 for wages lost between the time he was fired and the time his temporary work permit would have run out, plus $138.33 in interest.

The ruling held that Denny's had contravened section 83 of the Employment Standards Act, which prohibits punitive firing of workers for making complaints under the act. According Ms. Welder, Denny's management denied that they had broken the law in firing Sales. Speaking to The Tyee in January, Bobby Naicker, Denny's CEO, responded to questions about Sales and the class action suit by saying "We are comfortable we've done the right thing." In March, advocates told The Tyee that Denny's had at least temporarily improved some of its treatment of temporary workers in response to the class action suit.

"Denny's has been found to have engaged in retribution because a temporary foreign worker filed a complaint with the Employment Standards Branch" said Charles Gordon of Fiorillo Glavin Gordon, lawyer for Sales.

Further claims that the temporary foreign workers had been compelled to pay large hiring fees to an agent of Denny's in the Philippines are under ongoing investigation, and the accusation that workers were illegally required to pay for their own airfare to Canada is now part of the class action suit filed in January, and is thus not addressed in the April ruling.)

"Alberto Sales had a contract which clearly provided that Denny's was required to pay his airfare both from and to the Philippines. When he complained that they were not providing that, as well as paying for overtime and raising the issue of agency fees to get the job at Denny's, he was terminated," Gordon said.

Sales has been forced to return to the Philippines, as his work visa required that he continue working for Denny's in order to remain in Canada.

"This further illustrates the vulnerability of workers under the Temporary Foreign Worker Program," said Gordon."