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ESA Reprisal Liability: Lessons from Ramsook v Polat Construction
A May 2026 decision from the Ontario Labour Relations Board is a significant reminder for Ontario employers about the financial consequences of terminating employees in reprisal for asserting their rights under the Employment Standards Act, 2000. In Ramsook v. 10047481 Canada Corporation o/a Polat Construction, the Board substantially increased the compensation awarded to two migrant workers whose employment was terminated shortly after they asked to be paid outstanding wages — awarding each employee amounts exceeding $87,000 and $90,000 respectively.
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ESA reprisal findings can result in significant compensation orders, administration costs, and Board enforcement proceedings. Get legal advice before the situation escalates.
Call: 1-800-771-7882 Speak With an Employer LawyerCase overview
Garick and Ramesh Ramsook, brothers from Jamaica, were recruited by Polat Construction to work as cabinet makers in Ontario. Each received a written offer of employment for a three-year term, later adjusted to two years given their delayed arrival. They were paid $26.06 per hour for 42.5 hours per week and held closed work permits, meaning they could legally work only for Polat Construction.
On December 8, 2023, shortly after requesting payment of outstanding wages they were owed, both employees were terminated. The employer also withdrew as guarantor of their housing lease, triggering eviction proceedings. Because of their closed work permit status, neither employee was legally permitted to work for another employer until June 2024, approximately six months after termination.
What happened at each stage
Employment commences
Both applicants begin working for Polat Construction under closed work permits allowing work only for this employer.
Termination following wage request
Shortly after requesting outstanding wages, both employees are terminated. The employer also withdraws as housing guarantor.
Employment Standards Officer findings
The ESO finds a reprisal under the ESA and awards approximately $10,500 per applicant, including three weeks pay for job search time, four weeks for loss of continued employment, and $2,500 for pain and suffering.
Open work permits granted
Both applicants receive open work permits for vulnerable workers, finally allowing them to seek other employment. Permits expire June 2025.
OLRB decision substantially increases awards
The Board amends the ESO orders, awarding compensation covering wages from termination through to the expiry of the open work permits in June 2025, less post-termination earnings of $9,500 each.
The final compensation awards
Comprising $77,442.68 in compensation in lieu of reinstatement, $2,500 for pain and suffering, and $7,994.27 in administration costs.
Comprising $79,657.78 in compensation in lieu of reinstatement, $2,500 for pain and suffering, and $8,215.78 in administration costs.
An ESA reprisal finding can result in awards far exceeding minimum wage entitlements.
Understanding your exposure before a termination decision is made, not after, is the most effective way to manage risk. Our employer lawyers can advise you on ESA compliance and reprisal under the Employment Standards Act before a complaint is filed.
Get Employer Legal Advice Or call us: 1-800-771-7882The Board's legal reasoning: what changed and why it matters
The Employment Standards Officer had awarded a combined total of approximately $10,500 per applicant by assessing three separate heads of damages. The Board took a different analytical approach, collapsing the direct earnings loss and loss of reasonable expectation of continued employment into a single question: what compensation puts the applicants in the position they would have been in had the reprisal not occurred?
The Board identified June 2025 as the natural endpoint of the compensation period for two reasons: it aligned with the expiry dates of the applicants' open work permits, and it corresponded roughly with the end of the two-year employment contracts the parties had agreed to. This framing produced awards of approximately $87,000 and $89,000 in wages before deductions, substantially exceeding the ESO's original assessment.
Four legal points employers need to understand from this decision
Written fixed-term contracts define the compensation horizon
The existence of a two-year written employment contract was central to how the Board calculated the compensation period. Employers using fixed-term contracts must understand that terminating early, particularly in reprisal circumstances, can anchor damages to the full contract term.
Closed work permit status dramatically increases exposure
Because the employees could not legally work elsewhere until June 2024, the Board treated the entire period from termination to work permit expiry as compensable. The employer's decision to hire migrant workers on closed permits and then terminate them created a significantly longer compensation window than a standard termination.
Non-participation does not protect an employer
Polat Construction did not challenge the reprisal finding, did not attend the hearing, and did not lead any evidence on mitigation. The Board made clear that the onus to demonstrate failure to mitigate rests on the employer. An employer that does not engage with proceedings loses the ability to reduce the compensation awarded.
Administration costs add 10 percent on top
Administration costs of 10 percent were calculated on the total compensation and pain and suffering awards. On awards of this size, that added over $7,900 and $8,200 respectively to the total orders. These are not optional and are added automatically under the ESA.
Practical takeaways for Ontario employers
Frequently asked questions about ESA reprisal liability for Ontario employers
What is a reprisal under the Employment Standards Act?
A reprisal under the Employment Standards Act, 2000 occurs when an employer takes adverse action against an employee because they exercised or sought to exercise a right under the Act. This includes termination, demotion, discipline, or any other punitive action connected to the employee asserting entitlements such as unpaid wages, overtime, or statutory leaves.
How is compensation calculated for an ESA reprisal finding?
Compensation for a reprisal under the ESA is assessed under heads of damages that include direct earnings loss, loss of the value of continued employment, and emotional pain and suffering. The overarching principle is to put the employee in the position they would have been in had the reprisal not occurred. As this case illustrates, where employees had fixed-term contracts or restricted work status, the compensation period can extend significantly beyond what a standard termination might produce.
Does the employer have to prove the employee failed to mitigate?
Yes. The onus of demonstrating that an employee failed to adequately mitigate their losses rests on the employer. If the employer does not lead evidence on mitigation, the Board will generally not reduce the compensation award on that basis. In this case, the employer's failure to participate in proceedings meant no mitigation argument was available at all.
Are administration costs always added to ESA reprisal awards?
Yes. Under the Employment Standards Act, 2000, administration costs of 10 percent are added to the total compensation ordered. On large awards, this can add thousands of dollars to the employer's total liability. In this case, administration costs added over $16,000 across both orders.
What should an employer do if they receive an ESA reprisal complaint?
Seek legal advice immediately. Employers who do not engage with the Employment Standards Officer or the Ontario Labour Relations Board process lose the ability to challenge findings, lead evidence on mitigation, or present business justifications for their decisions. Early legal involvement in an employment dispute protects the employer's position and options throughout the process.
Speak with an Ontario employer lawyer
If your organization is facing an ESA complaint, a reprisal allegation, or a dispute involving termination and compensation, our team can advise you on your exposure and options. We also help employers structure employment agreements that properly reflect their obligations and reduce the risk of costly disputes. Contact us for a confidential consultation.
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