Two workers were awarded $233,000 in back pay after their employer’s attempt to partially compensate them with a company-created cryptocurrency was rejected by the Ontario Labour Relations Board (OLRB). The ruling emphasized that under Ontario’s Employment Standards Act (ESA), wages must be paid in Canadian dollars.
The dispute arose when Kinglory Inc. paid only half of the employees’ $240,000 salary in legal tender and the remaining half in Kinglory cryptocurrency. The workers contested this, claiming their contracts entitled them to full payment in Canadian currency. The OLRB sided with the employees, ordering Kinglory Inc. to pay $116,741.88 to each worker, as the cryptocurrency was not considered legal tender under the ESA.
Employer Obligations in Alberta and BC: The biggest takeaway from Kinglory is that employers must ensure wage payments comply with the ESA, which does not recognize cryptocurrency as a valid form of payment for wages. Non-compliance can lead to significant financial penalties.Although there is no existing legal precedent in Alberta or BC regarding cryptocurrency payments, the Employment Standards legislation in these provinces similarly requires that all salaries be paid in legal tender, such as cash, cheque, or direct deposit. Employers across Canada considering non-traditional payment methods must ensure they comply with local employment laws to avoid legal challenges.
At TZ Law, we specialize in employment law across Calgary, Edmonton, and Vancouver, and surrounding communities. Whether you are an employer drafting termination agreements or an employee navigating a wrongful dismissal claim, our experienced legal team is here to help. Contact us today for tailored advice on severance, layoffs, and the duty to mitigate.
