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Questions about the Apportionment of Fees for Certain Settlements

This question is about the apportionment of collection fees for settlements between employers and employees (s.112 settlements) and settlements through labour relations officers during the appeals process (s.120 settlements) after an order has been referred to collections.

How do the apportionment of fees for s.112 and s.120 settlements work?

When a section 112 or section 120 settlement occurs, the Director of Employment Standards is entitled to be paid the proportion of the collector’s fees that is in the same amount as the proportion that the settlement was to the original order. The Employment Protection for Foreign Nationals Act has been amended to incorporate these changes.

For example, if an order is issued for $1,000 in wages, and assuming the collection fee is 20%, the original collection fee would be $200.

If the order was settled for $800 (80% of the amount owing to the employee), the collector would be entitled to a proportional amount of the fee in the amount of $160 ($200 x 80% = $160), based on the settlement reached.

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