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Former Farm restaurant employees upset over unpaid wages after owner claims insolvency

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Former Farm restaurant employees over unpaid wages after owner claims insolvency
Some former employees of a Calgary restaurant Farm are angry. The eatery closed its doors in May and the owner said she filed for insolvency. As Sarah Offin reports, that’s left questions over who'll pick up the tab for severance and vacation pay – Oct 26, 2016

For over two and a half years Gregory Gannon had what he describes as a dream job.

“I loved working at Farm. All the food we made was mostly from local farmers, local suppliers,” Gannon, a former cook at Farm, said.

But last may, a surprise move left some employees blindsided.

“I started working for about 15 minutes – I was supposed to run the line that night,” Gannon said.

“They were very upset, very apologetic and they said, ‘Farm’s out of business. We have no more money and we’re out. We’re able to pay out your last paycheck – but that’s it,’” former executive chef Chris Hartman said.

Owner and cheese expert Janice Beaton said she could no longer make a go of it in this economy, but her cheese store would remain open at the 17th Avenue location.

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Janice Beaton filed for insolvency after she said she was forced to close Farm restaurant’s doors last May. Global News, File

“My immediate thought was that I felt bad for Janice. I felt bad that her business was going under,” Gannon said.

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Three employees Global News spoke with are now part of an Alberta Employment Standards complaint, and said together they’re owed about $7,000 in unpaid vacation and termination pay.

“It certainly put a crinkle into my summer plans,” said Ryan McLeash, who worked at Farm for over three years, including two as a manager.  “I had a lot of vacation time coming to me – trips planned and family coming to visit me. With the economy the way it was I wasn’t sure of what positions would be coming up right away.”

McLeash said he had been in contact with Beaton several times and had encouraged her to file for bankruptcy so that employees would be compensated through government programs.

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But Beaton instead filed for insolvency. Alberta Employment Standards said in a statement Wednesday, “matters of insolvency are covered under federal legislation and often administered through the courts.”

That’s left some employees feeling defeated.

“There’s not much legally we can do to fight,” Hartman said. “I don’t feel comfortable launching a lawsuit against her and there’s no other legal recourse. We’ve done everything we can.”

“We’re left in this grey area in the legal system, where we can’t go to the government to get compensation,” Gannon said.

Silver Sage Beef, meanwhile, who was a supplier for Farm for several years, said they are pursuing legal action for what they suggest are unpaid invoices dating back up to two years ago.

Mabou Cheese + Bar belonging to Janice Beaton Fine Cheese Inc. has since replaced Farm at the same 17th Avenue location.

“It upsetting when someone tells you they have no money to pay you the legal minimum right and then they open up a brand new restaurant and a brand new cheese shop,” Hartman said.

Beaton’s insolvency trustee says Beaton has filed for insolvency as an individual and that she is only a part shareowner of Mabou Cheese + Bar.

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That means Beaton has five years to sort out debts with her trustee, leaving former employees in limbo.

Beaton has not yet responded to Global News’ requests from comment.

She has been quoted as saying she is essentially an employee of Mabou Cheese + Bar and the structure of the company has no relationship to the previous one.

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