In King v. 1416088 Ontario Limited, 2014 ONSC 144, an Ontario court found that a 73-year-old employee terminated after 38 years of employment was entitled to claim wrongful dismissal damages from a newly activated company that was part of the group of corporations that had included his former employer. Although the official employer had been wound up after suffering financial difficulties, the new operation had effectively become its successor. Within a few months of the wind up, it had begun operating from the same premises and using the same equipment, had some of the same employees and used the telephone number and website of the defunct employer. On the facts, it was properly treated as the current incarnation of the business that the plaintiff had worked for over a period of 38 years.
The plaintiff was entitled to 24 months' pay in lieu of notice, retirement compensation and costs on a partial indemnity basis. The other companies in the corporate group were sufficiently interconnected as to be jointly and severally liable, under the common employment doctrine, for those damages.
Norton Rose Fulbright Canada LLP
Norton Rose Fulbright is a global legal practice. We provide the world's pre-eminent corporations and financial institutions with a full business law service. We have more than 3800 lawyers based in over 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.
Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare.
Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.
Norton Rose Fulbright LLP, Norton Rose Fulbright Australia, Norton Rose Fulbright Canada LLP, Norton Rose Fulbright South Africa (incorporated as Deneys Reitz Inc) and Fulbright & Jaworski LLP, each of which is a separate legal entity, are members ('the Norton Rose Fulbright members') of Norton Rose Fulbright Verein, a Swiss Verein. Norton Rose Fulbright Verein helps coordinate the activities of the Norton Rose Fulbright members but does not itself provide legal services to clients.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.