BC taxi company ordered to pay its driver after withholding money

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A recent court case saw a driver at Richmond Taxi Co. Holdings Ltd. fight for the return of money that was withheld from his cheque for “late fees.”

Muhammad Ayub filed a claim with the BC Civil Resolution Tribunal after he was charged $1,530 by the taxi company in late fees for failing to pay their operating costs on time.

According to the decision, Richmond Taxi introduced a resolution requiring its company’s drivers to pay operating costs by the 15th day of each month or face a penalty of $10 daily.

Richmond Taxi told the court that it had informed shareholders, including Ayub, of the new financial penalties for driving one of its taxicabs when it introduced the resolution in 2020.

Ayub was issued a $1,530 penalty in late fees by the company in August 2021, and the money was withheld from his income.

In its response to the claim, the company said it had given Ayub notice of his “obligation” to pay those penalties and asked for his case to be dismissed.

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The court challenged Richmond Taxi’s authority to issue penalties to its shareholders and found that the company had no legal right to impose the penalties for the late fees.

According to the decision, the employee agreement did not contain any contractual provision allowing the taxi company to charge late fees.

Additionally, the court found no copy of the notice of the late fees to Ayub was provided to explain why he must pay the penalties.

Ayub’s claim was allowed and Richmond Taxi was ordered to pay its debt to him. In total, the taxi company was ordered to pay $1,827.12, including $1,530 in debt, $172.12 in pre-judgment interest, and $125 in court fees.