Does an employee who retains his or her employment following a sale or reorganization have to rely on his and her employment history with the previous owner as a factor in the calculation of reasonable notice?

Ontario, Canada


The following excerpt is from Debenham v. CSI-Maximus, 2003 CanLII 10846 (ON CA):

We disagree. The trial judge relied on the reasons of Sachs J. in Kamen v. Rose, [2001] O.J. 291 at para. 22 (S.C.): There are a number of cases involving businesses that have been sold or reorganized, in which the courts have decided that an employee who retains his or her employment following such a sale or reorganization is entitled to rely on his or her employment history with the previous, as well as the current owner, in the calculation of reasonable notice upon termination. These cases further hold that this will be the presumption unless there is an express agreement to the contrary. We agree with this statement of the law and with the trial judge’s conclusion that, on the record before him, “the plaintiff's history of employment from 1974 to the date of termination in March, 2000 should be the basis for the calculation of reasonable notice.”

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