Can Freshii outsource cashier jobs to Nicaragua?

Freshii’s virtual cashiers and employee rights

Freshii, a franchise restaurant with 343 locations across North America, is testing a new ‘virtual cashier’ concept, called “Percy,” that connects workers in Central America with customers in Canada.

In Ontario, employers are required by law to pay employees a minimum wage of $15 an hour as of January 1, 2022. By comparison, Freshii’s cashiers who are based in Nicaragua are earning $3.75 (USD) an hour.

How Percy works: The video-calling device activates when someone arrives at the checkout. A person on the other end of the call is available to answer questions and help the customer complete their transaction. It is being used at cash registers at a small number of Freshii locations in Ontario as a test pilot – two in Toronto and one in Waterloo, according to the Toronto Star. One Freshii location in Rosedale, a residential neighbourhood in Toronto, has been employing a virtual cashier since January 2022.

The use of outsourced cashiers and self-checkout options in the restaurant industry understandably has employees raising questions about their job security. Read on to learn more about Freshii’s new virtual cashiers, and how they can impact the employment rights of existing Freshii employees.

Can Freshii outsource work to other countries?

On the face of it, Freshii’s employment outsourcing is legal. In Ontario, when a company outsources its work to hired workers in other countries, the company is typically obligated to adhere to the employment laws of the country or territory in which the outsourced worker is performing their duties.

However, if the outsourced worker is considered to be performing work that is a “continuation” of work performed for the company in Ontario, then Ontario’s employment laws would apply.

INTERVIEWS
• Employment lawyer on CTV discussing legalities of Freshii outsourcing
• Fiona Martyn with Global News on Freshii and employee rights
• BC employment lawyer on the legality of outsourcing cashier jobs

Do employees have to train their replacements?

An employer is required to provide training to outsourced workers as it would to any of its employees working in Ontario. Regardless of where the employee is working, the company must ensure that its employees know how to perform the tasks of the job.

Employees who are being replaced may not necessarily be required to train those new employees. If training the outsourced employees results in a significant change to the terms of their employment, that employee may be entitled to make a claim for constructive dismissal, and leave their job with their full severance pay immediately.

READ MORE
• CIBC Staff Losing Jobs to Workers in India, Expected to Help with Training
• CIBC workers laid off, expected to help with training replacements

Can you get severance pay if your job is outsourced?

If you are fired or let go, or fear that you may be replaced by an outsourced worker, you will be owed severance in the vast majority of cases. The amount of severance you should receive may be as much as two years’ pay or more. Contact one of our employment lawyers at Samfiru Tumarkin LLP to find out what your unique severance package should look like.

LEARN MORE:
• Severance pay for Freshii workers