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Court Fine of $48,000 After Company Director Ignores Orders to Pay Workers

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Court Fine of $48,000 After Company Director Ignores Orders to Pay Workers

Ministry of Labour

Convicted: Daniel Cameron Scott, sole director of HRG Management Inc., and Capital Business Centres (Albert Street) Inc., Rockland, Ontario.

Locations (of companies): In the Kitchener and Ottawa regions.

Description of Offences: The corporate defendants failed to pay unpaid wages, final vacation pay and termination pay resulting from constructive dismissals and did not pay the claims after being ordered to do so by Ministry of Labour employment standards officers. The individual defendant failed to pay unpaid wages and vacation pay, and did not pay the claims after being ordered to do so by Ministry of Labour employment standards officers. These are  offences under the Employment Standards Act.

Date of Offences: Between November 21, 2013 and March 31, 2014, the Ministry of Labour received 22 claims against HRG Management Inc. Between December 24, 2014 and May 6, 2015, the ministry received three claims against Capital Business Centres.

Convictions of Companies: On December 9, 2016,  HRG Management Inc., was convicted after pleading guilty to 20 counts and was fined $5,000 for each count ($100,000); Capital Business Centres (Albert Street) Inc. pleaded guilty to three counts and was fined $5,000 for each count ($15,000).

Conviction of Director: On December 9, 2016 the director was convicted on four counts, and was fined a total of $48,000 on February 27, 2018.

Penalty Imposed:

  • Daniel Cameron Scott, sole director of the companies, pleaded guilty.
  • A fine of $48,000 was imposed by Justice of the Peace Michael Cuthbertson in Kitchener court on February 27, 2018. Crown Counsel: Aaron Dewitt.
  • 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:

  • Director Daniel Cameron Scott had been ordered by employment standards officers to pay a total of $86,453 for unpaid wages, etc.
  • The lowest amount owing to an individual was $1,179 and the highest was $12,800.
  • The companies and the director failed to comply with or request reviews of the orders to pay.

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