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KFC Employer Fined for Failure to Pay Workers As Ordered

Court Bulletin

KFC Employer Fined for Failure to Pay Workers As Ordered

Ministry of Labour

Convicted: Dove Foods Limited (registered offce address 46 Sandringham Drive, Toronto), a company that operated multiple Kentucky Fried Chicken (KFC) restaurants, and Evan Gogou, a director of the company.

Locations: Multiple KFC restaurants, including in the towns of Stroud, Bradford, Angus and Newmarket, Ontario.

Description of Offence: The company and a director of the company were convicted for failing to pay termination pay and vacation pay after being ordered to do so by a Ministry of Labour employment standards officer.

Date of Offence: Orders to pay were issued to the company between May 12 and July 29, 2015, and on September 2, 2015 to the company director.

Date of Conviction: October 31, 2017, at Provincial Offences Court/Ontario Court of Justice, 70 Centre Avenue, Toronto, by Justice of the Peace A.M. Johnston; Crown Counsels Tyler Fram and Judy Chan.

Penalties Imposed

  • Dove Foods received a fine of $75,000.
  • Company director Evan Gogou was fined $10,000.
  • The court also imposed a 25-per-cent victim fine surcharge as required by the Provincial Offences Act. The surcharge is credited to a special provincial government fund to assist victims of crime.

Background

  • 14 former employees filed employment standards claims against Dove Foods for violations of the Employment Standards Act after the company closed several KFC locations.
  • The Ministry of Labour issued 14 Orders to Pay (OTP) between May 12 and July 29, 2015 for the company's failure to provide its former employees with termination pay (and also vacation pay in select cases), totalling $45,462.
  • In addition, a Director Order to Pay was issued to company director Evan Gogou for $5,514, equivalent to the unpaid vacation pay portions from two of the OTPs.
  • None of the Orders to Pay or the Director Order to Pay were appealed to the Ontario Labour Relations Board before a 30-day deadline.
  • Despite being properly summonsed, Dove Foods and Evan Gogou never attended court.
  • A person who contravenes the ESA or its regulations, or fails to comply with an order under the act, is guilty of an offence.

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