Can an employer offer a free meal or shirt as compensation instead of wages?

A car dealership recently faced fierce backlash online over an advertisement it posted on Craigslist.

Instead of hiring employees to work at sales events, the dealership offered to bring people on as volunteers. A major red flag was that their compensation would be free meals and T-shirts rather than wages.

While the post has since been taken down, it has sparked a conversation about whether or not this practice is legal in Canada.

READ MORE
• Former Cineplex host claims he was paid in Scene points

Do things like meals or shirts count as wages?

A free meal or a T-shirt are not legally considered wages or pay for work performed. Provincial legislation in Canada, such as B.C.’s Employment Standards Act, 1996 (ESA), ensures that an employee must receive true wages when they work.

LISTEN: A Vancouver employment lawyer was a guest on 980 CKNW’s The Mike Smyth Show, where he explained why employers can’t substitute a volunteer’s wages with a free meal or T-shirt.

Do employers have to provide financial compensation to volunteers?

Employers don’t need to pay volunteers. The difference between a volunteer and an employee is the expectation to be paid.

In most cases, companies are not legally able to ask an individual to perform a duty that an employee normally would. Wages must be paid.

Under provincial legislation, such as the ESA in B.C., who qualifies as a volunteer is not currently defined.

However, there are some factors that make it more likely that you could be considered an unpaid volunteer rather than an employee:

• The employer is a non-profit
• The work isn’t for the benefit of the employer’s business (i.e. a charitable event)
• The individual is allowed to turn down the work and is performing the duties without the expectation of being paid

How can I tell if I’ve been misclassified as a volunteer?

Employers may misclassify employees as volunteers or independent contractors to avoid acknowledging certain employment rights, including:

• Minimum wage
• Vacation and overtime pay
• Severance pay

Our legal system provides guidelines for determining whether or not someone should be classified as an employee.

You can use Samfiru Tumarkin LLP’s free Pocket Employment Lawyer tool to find out what your situation is right now.

LEARN MORE 
• Employment lawyer on S-Trip class action lawsuit

Are unpaid internships illegal in Canada?

The short answer is yes. However, there are certain cases in both federally and provincially regulated industries where unpaid internships are acceptable.

Normally, the Canada Labour Code (CLC) requires interns in federally regulated industries to be paid at least minimum wage. However, if the internship is a mandatory part of an educational program, the employer doesn’t need to pay the individual.

In Ontario and B.C., their employment legislation only allows for unpaid internships in certain cases.

Example: British Columbia’s ESA does not apply to a number of regulated professions, including:

• Legal professionals
• Chartered professional accountants

Questions about volunteering or internships? Speak with an employment lawyer

Before accepting work as a volunteer or an unpaid internship with an employer, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Toronto, Ottawa, Calgary, and Vancouver can review your situation and provide you with the advice you need.