Why labour laws may not protect Ontario workers from wage theft

CTV’s Jeff Pickel looks at the legal gaps when it comes to wage theft allegations in Canada.

An employment lawyer is calling on the province to step in as a new set of allegations were made against grocer in Waterloo Region.

Three former employees of Dutchie’s Fresh Market in Waterloo, who spoke with CTV News Kitchener on Tuesday, allegedly endured verbal and physical abuse from business director Mike Renkema.

Aditya Guleria, an international student from India who worked at the store in June 2024, said he is owed several thousand dollars in back pay.

Gerie and Amiel, cousins from Eritrea, also said they are owed unpaid wages.

CTV News reached out to Renkema. In a statement on Tuesday he wrote, “We will review any and all concerns an employee has. An employee can always bring an issue to our attention and it will be rectified. We have and we will continue to correct all issues.”

Waterloo Region Community Legal Services provides free legal services to low-income residents.

Joanna Mullen, an employment lawyer who works for the organization, said she is saddened and frustrated by the latest allegations.

Mullen has represented more than a dozen other former Dutchie’s employees and also spoke to a parliamentary committee last fall about the need for stronger employment laws.

“The reality is there is no mechanism in the Employment Standards Act to actually stop a business from committing this type of wage theft,” she explained.

Mullen said her clients are often surprised to learn that it’s not covered in Criminal Code of Canada.

“The criminal code doesn’t deal with employment relationship, so there’s nothing that the police would do to step in when wage theft is happening,” she said.

The payment to employees falls under the jurisdiction of the Ontario Ministry of Labour and the Employment Standards Act (ESA).

The ESA allows the ministry to fine and issue orders to pay, but it cannot shut a business down.

“There’s nothing really there to say, you can’t have employees anymore or you can’t operate a business anymore,” Mullen explained.

In March 2024, CTV News Kitchener obtained public records showing the Ministry of Finance and the Ministry of Labour had issued at least 30 orders to pay against Dutchie’s and Renkema.

In total, they owed $657,000.

Renkema pleaded guilty to 13 offences in the Employment Standards Act in December 2024.

‘The laws have to change’

According to Mullen, the only way to stop bad actors is by creating better laws.

“We need the provincial government to put stronger mechanisms into the Employment Standards Act where the Ministry of Labor or the Ministry of Finance can actually say to a business, ‘You can’t have a business license anymore,’ or go to a region and say, ‘You can’t provide this person with a business license, they can’t have a liquor license, maybe they can’t have a driver’s license.‘”

Mullen said these laws already exist in other situations.

“When it comes to things like child support, the Family Responsibility Office actually has the ability to strip someone of their driver’s license if they’re not paying child support under a court order. Why doesn’t the Ministry of Labor have that same ability?”

CTV News Kitchener reach out to David Piccini at the Ontario Labour Ministry but did not hear back by our deadline.

In the absence of government action, Mullen said public pressure is often the most effective tool.

“Hopefully we can push those in power in our provincial legislature to change the law, to be able to stop these bad employers from operating and create better mechanisms to protect workers from wage theft.”

Mullen asks anyone who has been the victim of wage theft to contact Waterloo Region Community Legal Services.