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Employees, corporate transactions and the entrepreneur

An entrepreneur’s workforce grows either through fresh hires or through the acquisition of companies that bring along new employees.  Whether your organization is a large multi-national in a complex mergers and acquisitions (M;&A) transaction or a start-up looking to acquire a 2-person corporation with a new development line or skill set, the employment law implications are complex, yet largely the same.

 

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Can an employer be liable to an employee for previous service to a related employer?

In unionized industries and in particular the construction sector, there are well established rules governing when multiple companies can be considered a single employer under the law. Dozens of multiple employer applications per year are brought in Ontario alone.  The same cannot be said about common employer determinations in the non-unionized sector. However, a recent case heard by the Ontario Superior Court of Justice dealt with such a situation.

 

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