Western Star hotel owners are challenging a Manitoba Labour Board ruling that orders them to pay more than $100,000 in unpaid wages to three foreign workers who were allegedly employed without the proper authorisation. The appeal hinges on whether the workers were legitimate employees and whether the recorded hours were accurate.

Western Star’s claim of ignorance about two foreign staffers

Irwin Brar, representing Western Star, told the board that the company only learned of a contract between one worker and the hotel’s operations manager after filing the appeeal. The workers in question, Victor Padilla Ruiz and Montserrat Del Toro, are said to have been hired in 2023‑24 and are owed overtime, holiday and vacation pay. According to the report, the owners argue the hotel was mismanaged and that the individuals were not employees, a claim that clashes with evidence of unsigned employment agreements.

Evidence of employment: unsigned contracts and accommodation agreements

Documents submitted by Western Star show an accommodation agreement and an unsigned employment agreement for Padilla Ruiz. Harpinder Brar, listed as director of the Melita location, claimed that Padilla Ruiz only "helped out" in exchange for lodging and that Del Toro was an unauthorized occupant, not an employee. At the hearing, the workers testified they were employed, and the labour board panel noted that new evidence could not be accepted during closing statements.

The third worker, Rajbinder Mathias, and a separate order

In addition to the two disputed wokrers, a third worker, Rajbinder Mathias,is also owed money from a separate order.. The report indicates that Mathias was not mentioned in the appeal, yet the board’s order includes his unpaid wages. this raises questions about the scope of the appeal and whether Western Star is attempting to limit liability to only the two named workers.

Manitoba Labour Board’s stance on the appeal

Devin Johnston, counsel for Manitoba Employment Standards, noted that Western Star did not challenge whether the workers actually worked at the hotel , only the number of hours. The board panel indicated that new evidence could not be accepted during closing statements, effectively locking in the evidence presented earlier. The appeal therefore hinges on whether the workers were legitimate employees and whether the recorded hours were accurate.

Implications for foreign worker protections in Manitoba

The case highlights issues with foreign worker protections and employer accountability in Manitoba. If the appeal succeeds, it could set a precedent that allows employers to avoid responsibility for undocumented workers. if it fails, it could reinforce the obligation of hotel operators to verify the legal status of all staff.