Reference no: EM133675475

Assignment:

Summary of the Judgment: The judgment, delivered by Russell J., confirms that the electronic tips, referred to as "due-backs," constitute "contributory salary and wages of the employee paid by the employer" under subsection 9(1) of the CPP and "insurable earnings" under subsection 2(1) of the EIA. The court considered the statutory underpinnings of both CPP and EIA, focusing on whether the employer, RML, "paid" the subject tips to the servers.

Analysis: The judgment extensively discusses relevant jurisprudence, including Canadian Pacific Ltd. v. Canada (1986), Lake City Casinos Ltd. v. Canada (2007), and Andrew Peller Ltd. v. Canada (2015). It emphasizes the liberal interpretation of the term "paid" as established by the Supreme Court of Canada and applied in subsequent cases by the Federal Court of Appeal. The court examined the factual circumstances of RML's tipping procedure, particularly the distribution of electronic tips.

It concluded that RML had paid the subject tips to its employee servers, as they were distributed by RML and constituted part of the servers' earnings from their employment at RML.

Conclusion: Based on the judgment's analysis and application of relevant legal principles, the court dismissed RML's appeals against the CPP and EIA assessments. The judgment provides clarity on the treatment of electronic tips for social security legislation purposes, emphasizing the employer's role in distributing such tips to employees. What do you think about this case?