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According to The Globe and Mail’s article published today, Bank of Nova Scotia has lost a bid to quash a massive class-action lawsuit that claims the bank unfairly denies more than five thousands of its employees compensation for overtime work.
The bank had appealed an Ontario judge’s certification of the lawsuit as a class action last year. In a ruling issued last Friday, the Ontario Divisional Court rejected the bank’s arguments.
The statement of claim alleges that class members are assigned heavier workloads than can be completed within their standard working hours. They are required or permitted to work overtime to meet the demands of their jobs and Scotiabank fails to pay for the overtime work in direct contravention of the Canada Labour Code under which they are regulated.
The claims in the lawsuit, which demands policy changes and $350-million in damages, remain unproven and must still be subjected to a full trial.
The case is one of several similar class actions launched in recent years against Canadian financial institutions about unpaid overtime. It follows years of similar cases, and multimillion-dollar settlements, in the United States. Major financial institutions, such as JPMorgan Chase & Co., Morgan Stanley and Merrill Lynch & Co. Inc., have been also hit with claims for unpaid overtime.
So what can your company do to avoid similar charges?
Ensuring that you are compliant with penalty rates and modern awards can represent a major headache for many organizations, with recent workplace cases highlighting the importance of effective Award Interpretation and Time Management processes.
Mitrefinch’s Employee Time Management System (TMS) takes the stress out of employee allowances and entitlement calculations via an in-built, fully customizable Award Interpreter.
Easily calculate base and overtime pay, weekend and public holiday penalties, as well as leave loading and shift penalties, ensuring consistent application of your business rules. A direct interface to your external payroll application further reduces payroll administration and the potential for costly payroll errors
© 2012 Mitrefinch Canada
