Workers terminated from Hilton Metrotown are now entitled to receive greater severance payouts after the hotel lost an arbitration case, says the union representing the workers.
Hilton Metrotown in Burnaby terminated 97 workers during the COVID-19 pandemic and sought an exemption to the Employment Standards Act to avoid larger severance payouts under group termination rules. The arbitrator has ruled against the hotel and found they are not exempt.
Since the workers were terminated, other hotel staff were locked out on April 16. The hotel applied for an exemption from severance provisions under section 65 of the Employment Standards Act, which allows for exemptions due to the "impossibility" of performing employment contracts due to unforeseen events and circumstances. The arbitrator rejected their appeal on the grounds that the hotel is still operating and employing people.
UNITE HERE Local 40 estimates the hotel may owe workers hundreds of thousands of dollars in additional severance pay.
“This decision sends a strong warning to other hotels: do not use COVID-19 as an excuse to avoid your severance liabilities,” said Zailda Chan, president of local 40.
