Buyer Beware

April 13th, 2012 by

Did you know that under Ontario’s Employment Standards Act, a purchaser of a business will be deemed to be a successor employer, at least for the purpose of calculating reasonable notice of termination, if it hires an employee who worked for the company being sold within 13 weeks of the earlier of the employee’s last day of employment with the previous employer and the date of the sale – even if the employer was terminated with notice or pay in lieu of notice before the business was sold!  Moreover, the new business would not get credit for any termination payments received by the employer from the previous business.  That means, the employer is entitled to notice or pay in lieu of notice from the new business having regard to the day he or she started employment with the original business.

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