corporate veil

Personal liability in wrongful dismissal actions

February 5, 2014 Stringer LLP Employment/Labour Standards, Human Resources, Notice, Damages and Settlements, Payroll

A recent decision of the Divisional Court raises the issue of when an individual can be found personally liable in a wrongful dismissal claim. This will be particularly pertinent for small business owners where confusion may arise as to whether the employer is a corporation or an individual.

constructive dismissal, corporate veil, employment law, jointly and severally liable, Ontario Court of Appeal, personal liability, small business owners, small claims court decision, wrongful dismissal

When are directors liable to employees for debts of the corporation?

October 5, 2010 Earl Altman Employment/Labour Standards, Human Resources

It is an accepted principle of corporate law that the owners or managers of a corporation are not legally liable personally for the debts of that corporation. However, since the inception of limited liability, corporations have sought to avoid payment of various debts by hiding behind what is referred to as the “corporate veil”. Some of these efforts have been so flagrant a misuse of the principle that courts have struggled to “pierce the corporate veil” and impose legal liability on directors of the corporation for certain conduct.

Business Corporations Act, canada pension plan, Canada Revenue Agency, canadian employment law, corporate law, corporate veil, debts of the corporation, directors’ liability insurance, Employment Insurance Act, employment law, liabilities to employees, liability of directors of the corporation, limited liability, ontario, pierce the corporate veil