Desjardins Negative Vacation Bank Class Action Investigation

Desjardins Negative Vacation Bank Class Action – Under Investigation

Overview

Desjardins Insurance (“Desjardins”) employees may be owed money for deducted negative vacation banks from their wages at the end of employment.

Monkhouse Law seeks a lead Plaintiff for a contemplated class action regarding Desjardins.

Monkhouse Law is investigating a class action against Desjardins Insurance in connection with alleged wage deductions.

The claim has not yet been proven in Court, and Monkhouse Law is actively seeking an employee or former employee to assist with pursuing this claim.

Negative vacation banks

In Ontario, employees accrue entitlement to vacation as they work and after one full year of work, an employee is entitled to two weeks of vacation. However, many employers allow employees to take vacation time during their first year, which is then banked in a “negative vacation bank”. This “negative vacation bank” can then be paid off with either overtime work or deducted from wages at the end of employment.

According to section 13 of the Employment Standards Act, 2000, the only way that an employer is legally able to deduct money from an employee’s wages is if the employee has signed a written statement authorizing the deduction. The authorization must either specify the amount to be deducted or provide a method to calculate the amount to be deducted.

It is alleged that Desjardins has potentially been deducting the negative vacation bank from employee’s wages at the end of their employment without a signed authorization to do so. If true, this would be a contravention of the Employment Standards Act, 2000, under which they are regulated. If it was shown in court that Desjardins made these deductions, employees may be entitled to compensation for same.

Contact Monkhouse Law today

Toronto-based Monkhouse Law has a strong history of representing employees in class actions including having started the first Canadian contractor misclassification case in 2015, Sondhi v Deloitte, and the recent case against RBC Insurance for unpaid overtime and vacation pay, Singh v RBC Insurance.

If you would like to learn more about this potential class action against Desjardins, or are a former/current employee with Desjardins, please contact Katherine Manwaring at (416) 907-9249 ext. 221 or by email at katherine.manwaring@monkhouselaw.com

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