Judy L. Chan

Following the dismissal of the employees' appeal regarding related employers under the Employment Standards Act, the successful respondents sought costs.

The appellants and the Director of Employment Standards argued against a costs award, citing financial hardship and the public interest nature of the appeal.

The Court of Appeal found no basis to excuse the appellants on financial grounds and noted the Director could not use its statutory role to shield itself from costs after fully participating as an advocate.

However, because the appeal raised the interpretation of s. 4 of the Employment Standards Act for the first time in the court—a matter of broad public interest—the court ordered no costs.

The appellants, former employees of a bankrupt company, sought severance and termination pay from related companies under s. 4 of the Employment Standards Act.

The Ontario Labour Relations Board found that while the companies were related, the relationship did not have the intent or effect of defeating the purpose of the Act, as the related companies had actually propped up the bankrupt company.

The Divisional Court upheld the Board's decision as reasonable.

The Court of Appeal dismissed the appeal, confirming that the standard of review is reasonableness and the Board's decision fell within a range of acceptable outcomes.