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Category: Departing Employees

The Cost of Terminating Employees When a Business is Sold

By , April 17, 2018 8:29 am

When a business is sold the cost of terminating unwanted employees can significantly impact the sale price. The purchaser does not want to pay the cost of terminating long service employees, and the seller doesn’t want to incur termination costs which reduces the net sale price. General Rules on Termination Pay Obligation when a Business Continue Reading…

Can a successor employer offer a person lessor termination pay than the original employer?

By , November 17, 2017 5:13 pm

Can a successor employer offer a person lessor termination pay than the original employer? This issue was addressed by Ontario’s Court of Appeal in Krishnamoorthy v. Olympus Canada Inc., 2017 ONCA 873 Facts:  Carsen Group Inc. was the exclusive Canadian distributor for Olympus America Inc. Olympus America decided to terminate its distribution agreement with Carsen, Continue Reading…

How to Spot a Resignation

By , July 31, 2017 10:16 am

Contrary to popular belief, it is not always easy to know when someone has resigned. Even if an employee uses words such as “I quit,” a court may still find that the employee has not truly resigned. An employer in Alberta learned this lesson the hard way.  Carroll v Purcee Industrial Controls Ltd. (“PIC”)  Mr. Carroll worked for Continue Reading…

Alberta Court of Appeal Denies Incentive Compensation to terminated Employees; Ontario Court of Appeal Does Not

By , June 6, 2017 4:31 pm

As we have written in the past, there is significant legal uncertainly as to whether an employee is entitled to receive incentive compensation during the common law reasonable notice period. An Alberta Court of Appeal decision appears to have rejected the Ontario Court of Appeal’s approach to interpreting incentive compensation plans for terminated employees. The Continue Reading…

An update on mitigation: What happens when a wrongful dismissal case gets to court while the employee is still unemployed?

By , April 3, 2017 8:42 am

The Basics A wrongful dismissal occurs when an employer does not provide enough notice of termination. An employee can claim damages equal to the remuneration the employee would have earned during the applicable notice period. During the notice period, an employee is subject to the “duty to mitigate,” which means they must look for alternative Continue Reading…

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