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OCA upholds ESA related termination clause

In Nemeth v Hatch (2018 ONCA 7), the Court was faced with the following termination clause:

 

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Learn the latest! — Specific termination provision upheld after sale of business

When a company purchases another business, it is important to consider the legal implications respecting the status of employees. The Ontario Superior Court recently decided a case regarding the validity of an employment contract where an employee had signed an agreement with his former employer but never executed a new agreement when the company was purchased by another business. The plaintiff argued that the employment contract only governed the previous employment relationship. The Court disagreed, finding that the terms of the employment contract still applied.

 

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