Failure to Comply with Demand - Act Part 11, Section 90
This section explains the consequences to a person who fails to comply with a demand made under s.89.
90. (1) If a person on whom a demand is made under section 89 does not comply with the demand,
(a) the director may enforce recovery of the amount stated in the demand as if it were unpaid wages, and
(b) this Act applies to the recovery of that amount.
(2) If a person on whom a demand is made under section 89 denies indebtedness to anyone required to pay under a determination, a settlement agreement or an order of the tribunal, the director may require that person to produce information the director considers necessary to establish that there is no indebtedness.
Money payable on a demand under s.89 that is not remitted by a third party is deemed to be unpaid wages. The director may enforce recovery of the funds in the same manner as if the third party was the employer who owed the wages. The director would investigate the reasons for non-remittance prior to enforcing recovery of that amount from the third party.
The director may enforce recovery of the following, as applicable:
- the full amount of the original demand
- the amount for which the person was indebted to the employer at the time of the demand, if that amount is less than the full demand
- additional amounts to which the person becomes indebted to the employer while the original demand remains in place
An employer is a maintenance company providing cleaning services to ABC Company. The maintenance company owes wages to its employees. The director serves a demand on ABC Company. After receipt of the demand, the company pays the maintenance company. The director may then treat ABC Company as though it is the employer for purposes of recovering wages owing.
All wage recovery mechanisms under the Act may be used to recover this money.
Where a person who has been served with a demand under s.89, disputes that they are indebted to the person owing the outstanding wages named in the determination, settlement agreement, or order of the Tribunal, they must satisfy the director with the necessary information to show there is no indebtedness.
Related sections of the Act or Regulation