Employment lawyer on CTV discussing legalities of Freshii outsourcing

Interview Summary

As news of restaurant Freshii’s virtual cashiers from Nicaragua reaches citizens of Ontario, many are voicing concerns regarding the practice of outsourcing labour. Are employers in Ontario permitted to hire employees from outside of the country and if so, what laws are they obligated to follow?

Jon Pinkus, a Toronto employment lawyer and Partner at Samfiru Tumarkin LLP joins CTV News to discuss the practice and the implications of Freshii’s choice on employment laws.

Interview Notes

• Employment laws and technology and legality of virtual cashiers: In many cases employment laws have not kept pace with the rapid progression of the tech industry. Technically, the practice of outsourcing labour is legal.
• Ethics of hiring out-of-country employees for lower wages: While Freshii’s hiring of out-of-the-country workers seem to be unethical, companies could argue that there is a labour shortage within the province and outsourcing was necessary.
• Call centre employees and labour laws: Employers have to abide by the employment laws of the region that an employee lives in. This means, unlike employees in Ontario who could pursue constructive dismissal due to a wage cut, employers can have reduced wages that are not compliant with the ESA. Freshii workers are also owed full severance pay if they lose their job.