Executive Summary: Key Legal and Evidentiary Issues

• Legitimacy of invoking force majeure to avoid paying termination and vacation compensation.

• Application of articles 82 and 84.0.1 of the Loi sur les normes du travail concerning notice of collective dismissal.

• Determination of whether the employer fulfilled statutory notice and compensation obligations.

• Role of the COVID-19 pandemic in employment law defenses under Québec civil and labor law.

• Evaluation of the employer’s efforts to rehire staff and whether they affected liability.

• Court’s decision not to apply the 20% additional penalty due to the employer’s good faith and pandemic context.

Facts of the case

In Commission des normes, de l'équité, de la santé et de la sécurité du travail v. 9211-2127 Québec inc., the CNESST sought to recover unpaid termination and vacation pay totaling $25,082.56 on behalf of 18 former employees of the restaurant Le Baril Grill. The claim arose under Québec’s Loi sur les normes du travail (LNT), following a collective dismissal that occurred amid the COVID-19 pandemic. An additional 20% penalty of $5,016.51 was also requested under article 114 of the LNT.

The employer, 9211-2127 Québec inc., argued that the layoffs were due to force majeure resulting from government-mandated shutdowns during the pandemic. The restaurant, located in Saint-Georges-de-Beauce, employed mostly students whose work schedules were organized informally through a Facebook group. Operations were suspended in March 2020 due to public health orders. A reopening attempt in June 2020 failed to re-establish regular staffing, and the restaurant closed again in October 2020 when the region was declared a red zone.

In early 2021, after efforts to pivot to delivery and takeout service, the employer issued a collective dismissal notice to the CNESST. It claimed to have provided severance pay to the affected employees and argued that the layoffs should be considered unavoidable under the concept of force majeure. The CNESST disagreed, insisting the employer failed to meet statutory obligations for notice and compensation.

Legal reasoning and findings

The Court of Québec examined whether the pandemic-related circumstances met the legal standard of force majeure under article 1470 of the Code civil du Québec, which requires the event to be both unforeseeable and irresistible. The court concluded that the layoffs were not caused by a force majeure event but were instead a business decision made in response to economic challenges. The judge found that the employer had the ability to fulfill its obligations under the LNT, particularly since the termination occurred almost a year after the first wave of shutdowns.

The court emphasized the dual notice requirements under articles 82 and 84.0.1 of the LNT. Employers must give individual notice or compensation to each affected employee and provide advance notice to the Minister of Labour in cases of collective dismissal. The employer failed to comply fully with these requirements. Severance payments made voluntarily did not absolve the employer from statutory obligations for notice and vacation pay.

However, the court declined to impose the additional 20% penalty under article 114 of the LNT. It recognized the unique and uncertain circumstances of the early pandemic period, acknowledging that the employer acted in good faith and tried to rehire staff. The judge noted that the legal and public health framework evolved rapidly, and the employer’s position, while incorrect, was not unreasonable.

Outcome

The Court of Québec ordered 9211-2127 Québec inc. to pay $25,082.56 in unpaid compensation, plus interest and costs, to the CNESST. The claim for the 20% penalty was rejected. The judgment reinforces that even during extraordinary crises like a pandemic, employers remain responsible for upholding core employment standards unless a true force majeure is legally established. The case demonstrates the limits of pandemic-related defenses in employment law and underscores the importance of formal compliance with statutory requirements.