The applicant employer sought judicial review of an arbitration award that granted statutory holiday pay to employees on inactive status receiving WSIB benefits.
The employer argued the arbitrator failed to address its central argument under s. 24(1) of the Employment Standards Act, 2000, which would result in zero holiday pay for these employees.
The Divisional Court found the arbitrator's decision unreasonable, as it lacked justification and intelligibility regarding how the entitlement to payment was determined without addressing the statutory formula.
The application was allowed and the issue remitted to a new arbitrator.