CSSEA recently informed members about a decision on a sectoral policy grievance filed by the Community Social Services Bargaining Association (CSSBA) on the payment of Class 5 driver’s licenses. The decision ruled that, as of June 12, 2017, employers must pay the renewal fees for Class 5 driver’s licences ($75 every five years) for employees who are required to drive their own vehicles as part of their jobs or who are required to confirm that they hold a valid Class 5 driver’s licence as a job requirement.
Appeal Filed
After a careful review of the award, CSSEA filed an appeal to the Labour Relations Board. Under the Labour Relations Code, there is no avenue for a full-fledged appeal of the Award that would result in a re-hearing of the arguments; instead, an appeal is restricted to whether there was a reviewable error made by the Arbitrator in the arbitration process. CSSEA appealed the Award on the basis that critical evidence of union acquiescence in employer practices of non-payment of the license fees was not properly considered by the arbitrator; similarly, a key argument that employers do not require employees to acquire the license, but instead the Motor Vehicle Act does, was not properly considered. The Labour Relations Board has not provided a time frame for when it will issue a decision on the appeal.
In the meantime, the arbitration award is binding on all employers covered by the three Collective Agreements. Employees who are required to hold a Class 5 licence for employer business purposes and who renew their licences on or after June 12, 2017 must be reimbursed $75 for the cost of the licence.
Employee Reimbursement Declaration
If you have employees who work at multiple CSSEA member employers, you may ask them to sign a declaration attached to their expense reimbursement form affirming that they are not making multiple claims for the license fees. The declaration may read as follows:
“I, ______________, declare that I am claiming reimbursement of the $75 Class 5 License fee only from (name of employer), and I fully understand that if I make multiple claims for reimbursement of this fee, I may be subject to discipline and forfeiture of the amount paid to me.
Signed: (name of employee) Dated: ______________”
Payment of License Fees a Taxable Benefit
CSSEA has received confirmation from KPMG that the payment of the Class 5 driver’s license fees is a taxable benefit to be reported on T4 tax slip boxes 14 and 40.
Should you have any questions about the application of this Award, please contact your HRLR Consultant.