Fast-food chain Freshii recently launched “Percy,” a new virtual cashier. Instead of being greeted by an employee physically operating a checkout, customers will engage with a representative in Central America over video screen.
The chain’s decision to outsource a frontline position has been met with criticism from the Canadian Labour Congress and the Ontario Minister of Labour, Training and Skills Development. Opposition to the move centres on the fact that the company’s virtual cashiers are being paid a fraction of what a live employee would cost. Were the job to be held by someone working in Ontario, the minimum wage would be $15 per hour.
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Is it legal for Freshii to outsource jobs to another country?
Freshii’s maneuver is likely legal. A company must adhere to the employment laws of the region where the employee is performing their duties — in this case, Nicaragua. In Ontario, where “Percy” is currently working, the Employment Standards Act applies to workers who are performing their job in the province or whose employment outside the province is seen as a continuation of that work.
In this situation, Freshii is presumably relying on the concept that the virtual cashier job is not a continuation of work performed in the province.
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Does an employee have to train their replacement?
While outsourcing employment is entirely legal, the question of whether an employee can be forced to train their replacement is a little more complicated.
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An employer should ensure that all its employees are properly trained for their roles, regardless of whether they are local or outsourced staff. But a company can’t automatically task a current employee with the role of training their replacement.
If the job of training the incoming employee is a significant departure from the current employee’s original duties, it could be considered a constructive dismissal or forced resignation. At that point, the employee has a choice: accept the change to their role, or consider their job terminated and pursue severance pay from their employer.
In my experience as an employment lawyer, it is generally considered to be a bad work practice for employers to have outgoing employees train and prepare their replacement, as it can lead to a toxic work environment and cause excessive stress for the individuals who are involved.
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Can you get severance if your job is outsourced?
While companies in Canada can hire staff from outside the country to replace local talent, all employees who are fired because of outsourcing are still owed a full severance package.
Depending on several factors, that compensation could be up to 24 months’ pay. A quick check of my firm’s Severance Pay Calculator can give you a better understanding of what you may be owed.
If you fear your job may be outsourced, speak to an employment lawyer, like the ones at Samfiru Tumarkin LLP, right away. A lawyer can help you find out exactly what your rights are in your situation and secure proper compensation.
Was your job outsourced? Not sure how much severance your employer owes you?
Contact the firm or call 1-855-821-5900 to secure assistance from an employment lawyer in Ontario, Alberta or British Columbia. Get the advice you need — and the compensation you deserve.
Lior Samfiru is an employment lawyer and partner at Samfiru Tumarkin LLP, Canada’s most positively reviewed law firm specializing in employment law and long-term disability claims. He provides free advice as the host of Canada’s only Employment Law Show on TV and radio.