First Reference Talks

Discussions on Human Resources, Employment Law, Payroll and Internal Controls

consideration

By | 2 Minutes Read

What happens to employment contracts when an employer sells the assets of its business?

The Court of Appeal for Ontario has confirmed that in an asset sale, a purchaser’s offer of employment to a seller’s employee can constitute consideration for changes in an employment contract — including a new termination clause.

By | 3 Minutes Read

Consideration: What’s good for the goose is good for the gander

The facts of this case are extremely unique. We more commonly see the courts using the doctrine of consideration to deny employers the ability to enforce restrictive termination clauses imposed after employees have already commenced working. However, the ruling gives employers hope that, if the circumstances were sufficiently extreme and an employee’s behavior egregious, the courts will apply the doctrine of consideration to an employer’s advantage.

By | 3 Minutes Read

Ontario Court of Appeal confirms offer of employment is consideration after an asset sale

This case is a useful reminder that in asset sales, as opposed to share purchases, the purchasing employer is not obligated to hire all the vendor’s employees.

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