Nova Scotia’s Labour Board has ordered Code Ninjas Halifax to pay a former centre director $2,922.40 in unpaid bonuses and vacation pay after the company failed to honour compensation agreements following a change in ownership.
The ruling centres on Y.W., who worked as centre director at the Halifax coding centre from 2021 until her resignation in March 2024. The dispute arose after G.G. purchased the business from its original owner in January 2024 and subsequently changed how bonuses were calculated and vacation pay was handled.
Business transfer didn’t reset employee entitlements
The Labour Board found that G.G. was required under Nova Scotia’s Labour Standards Code to maintain all the same terms and conditions of employment that Y.W. had enjoyed under the previous owner. Section 12 of the code states that when a business is transferred, “the continuity of employment is not broken.”
Y.W. had been entitled to 10 days of vacation per year under her original contract. Initially, she received 4% vacation pay added to each paycheque, but when she became centre director, this changed to paid vacation leave instead of pay-outs.
In February 2024, G.G. informed Y.W. he was reverting to the 4% pay-out model and that future vacation would be unpaid. However, Y.W. had already scheduled vacation from March 20-31, 2024, which she had arranged with both the new and former owners.
Vacation pay dispute
G.G. argued that Y.W. was only entitled to vacation she had accrued since he took over the business in January 2024 — totalling 6.44 hours. He claimed there was no accrued vacation owing from the previous ownership period.
The board disagreed, finding that Y.W. had earned 10 paid vacation days available for use as of October 2023, which were required to be provided within 10 months under the Labour Standards Code. Text message evidence between Y.W. and the former owner supported her claim that she had not taken significant vacation time previously.
“The Board finds Wang’s evidence credible that she had not taken a scheduled vacation yet that year and that her request to take vacation from March 20-31 was her request to use her earned time,” the ruling stated.
The board ordered payment for seven days of scheduled vacation plus three additional days Y.W. was entitled to, plus the 6.44 hours accrued under the new ownership, totalling $1,800.92.
Bonus calculation controversy
Y.W.’s employment contract included a bonus agreement entitling her to “15% of monthly net profit, in addition to her current salary.” The agreement specified that Code Ninjas would calculate total monthly revenue after franchise fees minus all expenses.
The dispute centred on how to treat summer camp fees collected in February and March but not delivered until summer months. G.G. preferred what he called “accrual accounting,” where revenues would only count toward bonuses when services were actually provided to customers.
However, the board found no evidence this approach had been used previously. Y.W., as centre director, “had access to the internal systems of Code Ninjas” and “would have known had an alternative arrangement been in place in respect of summer camp revenue.”
The bonus agreement made no special provisions for deferred services, leading the board to conclude that “revenues were intended to be included when they were collected.”
Calculating the amounts owed
Using revenue and expense figures provided by G.G., the board calculated Y.W.’s unpaid bonuses:
For February 2024, with revenue of $51,527 and expenses of $45,620, the 15% bonus totalled $886.05, plus 4% vacation pay, for $921.49.
For March 2024, with revenue of $46,264 and expenses of $44,982, the 15% bonus totalled $192.30, plus 4% vacation pay, for $199.99.
The board noted that G.G.’s expense calculations weren’t supported by bank statements or other corroborative documents, but found the amounts “generally consistent with the monthly bonus amounts that Wang received in 2023.”
Resignation and aftermath
Y.W. resigned in March 2024, giving more than three weeks’ notice and offering to work additional days after her vacation to help with the transition. However, the working relationship deteriorated, with G.G. ultimately barring her from the premises and requiring police intervention.
G.G. had requested $2,250 in compensation for losses arising from Y.W.’s “unexpected resignation,” but the board found she had provided adequate notice and dismissed this claim.
The board also heard evidence about other workplace issues, including testimony from a former employee who successfully sued G.G. in small claims court over wage irregularities, but found this evidence had “no probative value” for the vacation and bonus questions.
For more information, see Nova Scotia Coders Inc. carrying on business as Code Ninjas Halifax v Wang, 2025 NSLB 65 (CanLII).
