The Manitoba Labour Board has ordered Winnipeg Environmental Remediations Inc. to pay over $9,000 in vacation wages to a former employee after the company failed to provide witnesses who could explain discrepancies in payroll records.
In a case that hinged on conflicting documentation, the board ultimately sided with the employee, S.I., who had worked as Vice-President of Major Projects from December 2015 until the employment relationship ended in July 2022.
“The Board has determined the employee was a credible witness and the records he provided are reliable,” stated the ruling after the employer failed to produce witnesses who could address inconsistencies between the payroll records presented by both parties.
Documentation discrepancies
The dispute centered on vacation pay calculations, with S.I. claiming $9,041.03 in unpaid vacation wages. The employee provided payroll records he testified were obtained while he still had access to the employer’s system.
When the employer submitted different payroll records showing “considerable differences,” the board requested a witness who could explain the discrepancies. However, the employer did not produce any witnesses who could clarify the differences between the documents.
S.I. testified that the company’s payroll records were maintained in QuickBooks, with secure password-protected emails sent to employees. He stated it would be “impossible for an employee to modify the payroll records” and demonstrated that the vacation amounts earned were clearly shown on the paystubs submitted by the employer.
The calculation
The board’s analysis of the evidence showed that:
- At the start of 2021, S.I. had an available vacation balance of $5,764.10
- Between then and the end of his employment, he accrued additional vacation wages of $8,180.78
- This created a total vacation wage accrual of $13,944.88
- During this period, he received vacation wage payments of $4,903.85
- The remaining balance owed to S.I. was calculated as $9,041.03
Procedural history
The case had a lengthy procedural history, beginning when S.I. filed a claim with the Employment Standards Branch on August 3, 2022. The claim was initially dismissed on May 17, 2023, but S.I. appealed the decision regarding vacation wages.
After multiple scheduling changes and adjournments, the hearing was finally held on December 12, 2024. At the hearing, counsel for the employer advised that no one from the employer would be present to testify.
Despite being granted a short adjournment to arrange for virtual testimony from an employer representative, counsel was unable to secure anyone from the company to participate. The employer’s counsel proceeded based only on the employee’s evidence.
Separate proceedings
The labor board noted that S.I.’s employment ended when his “access to the company was removed so he could not perform his duties and responsibilities.” The ruling mentioned that separate proceedings are ongoing in the Court of King’s Bench regarding a claim for wrongful dismissal.
The remedy
In its order, the Manitoba Labour Board directed Winnipeg Environmental Remediations Inc. to pay:
- $9,041.03 in vacation wages (less statutory deductions) to S.I.
- A $904.10 administrative fee pursuant to Section 96(1) of The Employment Standards Code
- A total amount of $9,945.13
The board’s ruling demonstrates the importance of maintaining accurate and consistent payroll records, particularly regarding vacation pay entitlements. It also highlights the challenges employers may face when unable to produce witnesses who can explain discrepancies in documentation during employment disputes.
For more information, see S.I. v Winnipeg Environmental Remediations Inc., 2025 CanLII 30321 (MB LB).
