Company in aeronautics business considered a federal work subject to Canadian legislation
A Canadian-based employer owed employees who worked in Nigeria severance pay in accordance with the Canada Labour Code, an adjudicator has ruled.
CHC Helicopter Corporation, a Richmond, B.C.-based company, hired and trained pilots and aircraft maintenance engineers from all over the world. It then assigned them to various operations it ran in different countries where they would fly domestic-only flights that were regulated by the countries where they were located. These pilots and engineers were called the touring crew, and they would be stationed for a period of time in one location, working on a six-week on, six-week off schedule. During their off weeks, they would often return to their home countries.
CHC had an operation in Halifax in 2008, though the employees there were permanent and did not change assignments. The company had an averaging agreement for paying its touring crew that had been approved by Human Resources and Skills Development Canada.
On July 1, 2008, CHC laid off 17 touring crew pilots and engineers who were working in Nigeria and were not given written notice of termination or severance. The employees filed a complaint claiming they were entitled to notice and severance under the Canada Labour Code.
In January 2012, an inspector found the code applied to the employment relationship because CHC, as a Canadian company, controlled all aspects of the employment. It was also determined the code applied to employees connected to a “federal work, undertaking or business,” which included international aeronautics. The company was ordered to pay the former employees a total of $99,565.03 for pay in lieu of notice and severance pay. CHC appealed the order, arguing the code didn’t apply to its Nigerian operation.
The adjudicator found the code applied to employment international aeronautics businesses based in Canada, and the former CHC employees were connected to such a business. As a result, the code applied to the employment of each of the 17 touring crew members in Nigeria and they were entitled to notice and severance pay under the code, said the adjudicator.
“While the work is servicing domestic operations in Nigeria, the employment is in or in connection with a global aeronautics business,” said the adjudicator. “This Canadian-based international aeronautics business is one facet of ‘aeronautics, aircraft or a line of air transportation,’ which is a federal work, undertaking or business.”
See CHC Global Operations (2008) Inc. and Blackwell (Employer’s Preliminary Objection to Jurisdiction), Re, 2012 CarswellNat 4061 (Can. Labour Code Adj.).
