Executive Summary: Key Legal and Evidentiary Issues

• CNESST claimed unpaid overtime, statutory holidays, and annual vacation pay on behalf of 13 employees.

• The employer failed to provide convincing counter-evidence to rebut the probative value of its own payroll and timekeeping records.

• Employer’s attempt to substitute informal benefits and gifts for statutory entitlements was rejected as contrary to the Labour Standards Act.

• Documentary inconsistencies undermined the employer’s credibility in most claims, though four employees' cases were partially or fully dismissed.

• Civil Code articles 2831 and 2832 were applied to support the evidentiary weight of business records in employment disputes.

• The court awarded CNESST nearly full recovery, including a 20% administrative penalty under article 114 LNT, with adjustments for specific employee exceptions.

Facts of the case

The Commission des normes, de l'équité, de la santé et de la sécurité du travail (CNESST) brought a claim against 9267-1551 Québec inc., operating as Havana Club, on behalf of 13 employees for violations under Quebec’s Loi sur les normes du travail (LNT). The claim, amounting to just under $10,000, included unpaid statutory holidays, improperly calculated overtime, and shortfalls in annual vacation pay.

The employer, represented by Dominic Perrier, argued that his records did not reflect the full picture. He claimed informal compensation arrangements, including lodging, meals, business opportunities, and other non-monetary perks, should be considered in lieu of strict compliance with labour standards. He also argued that employees had been treated generously and had no real grievances.

Court’s analysis and findings

The court, presided by Justice Denis Lapierre, emphasized that labour standards are matters of public interest and non-waivable rights under the law. It found that payroll records and other employment documents maintained by the employer were inconsistent and failed to support his claims. Applying Article 2831 of the Civil Code, the court held that such documents, created in the course of business and required by law, carried presumptive evidentiary weight unless convincingly rebutted.

Attempts by the employer to offset statutory entitlements with informal benefits or undocumented agreements were dismissed. The court cited Article 49 LNT, which prohibits substituting wages with unauthorized deductions or informal advantages unless there is express written employee consent. None was provided.

Nevertheless, the court reviewed individual claims for each employee. It dismissed four claims in full or in part due to documentation or plausibility issues: Karolyn Doyon had been appropriately compensated via a time bank; Carlos Osorios’s fixed weekly pay was deemed consistent with an agreed salary; Mélissa Perry Labonté’s time record was likely an error; and Alycia Caron’s discrepancy involved just one hour of overtime.

The court accepted the remainder of CNESST’s claim, including for unpaid holidays and unadjusted overtime. It also upheld CNESST’s right to a 20% administrative penalty under Article 114 LNT, due to the employer’s deficient record-keeping and regulatory non-compliance.

Outcome and procedural posture

The Court of Québec partially granted CNESST’s claim. Havana Club (9267-1551 Québec inc.) was ordered to pay:

• $4,813.58 for unpaid wages and statutory entitlements;

• $962.72 as the 20% administrative penalty under Article 114 LNT;

• Plus legal interest and judicial costs.

The ruling reinforces that Quebec employers must maintain accurate records and comply strictly with statutory minimums, regardless of informal arrangements or perceived generosity.