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Proposed Class Action against Scotiabank

December 16, 2022

RE:         SCOTIABANK’S ALLEGED FAILURE TO PROVIDE EMPLOYEES THEIR MINIMUM VACATION PAY TORONTO, Dec. 16, 2022 (GLOBE NEWSWIRE) -- A $25 million proposed class action lawsuit has been commenced against the Bank of Nova Scotia (Scotiabank) on behalf of its employees claiming unpaid wages for vacation pay and holiday pay. The claim alleges that Scotiabank miscalculates its employees’ vacation pay and holiday pay, contrary to the Canada Labour Code, because the Bank fails to include such things as bonuses and incentive payments when calculating the amount to be paid for vacation and holiday pay. The claim also alleges that Scotiabank fails to compensate employees the statutory minimum for unused vacation days. Scotiabank enforces a strict use-it-or-lose-it policy with respect to vacation days, and the claim alleges that this has resulted in some Scotiabank employees not being paid the minimum amounts required under the Code. These practices, together, have resulted in employees receiving less than their minimum entitlements. Under the Canada Labour Code, employees in federally-regulated workplaces are entitled to receive vacation and holiday pay, based upon a percentage of their wages. Wages, in this context, include salary, bonus, commissions, and incentive awards. Employees are also entitled to be compensated for unused vacation days. The plaintiff, Justin Ngan, commenced this claim against Scotiabank after discovering that he was not receiving his full vacation entitlements. Mr. Ngan asked the Bank’s human resources department for a vacation pay adjustment for unused vacation days that were set to ‘expire’. The HR department repeatedly told him that his unused vacation days were ‘lost’. He only received his adjustment because he escalated the matter to the bank’s legal department. When he ultimately received his adjustment, he discovered that Scotiabank underpays employees their vacation and holiday pay by unlawfully excluding variable compensation (such as bonuses) from its calculations. The claim alleges that these practices breach Scotiabank employment agreements, and its statutory obligations under the Canada Labour Code, and have resulted in Scotiabank profiting at the expense of its employees. Mr. Ngan seeks damages and other remedies on behalf of a class of all Scotiabank employees across Canada, excluding officers, directors, and C-suite executives. The law firms of Waddell Phillips Professional Corporation and Randy Ai Law Office represent Mr. Ngan. More information is available at http://bnsvacationpayclassaction.com/. Contact info: reception@waddellphillips.ca

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