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lack of consideration

By Rudner Law, Employment / HR Law & Mediation | 2 Minutes Read April 6, 2018

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.

Article by Rudner Law, Employment / HR Law & Mediation / Employee Relations, Employment Standards, Payroll / consideration, contractual termination provisions, employment agreement, employment contract, employment law, lack of consideration, reasonable notice, Termination provisions, wrongful dismissal

By Simon Heath, BA, MIR, LLB, Heath Law | 3 Minutes Read November 17, 2016

Fresh consideration and employment contracts

When a company promotes an employee, the employer should provide the employee with a new contract to sign prior to allowing the employee to commence his or her duties. In that way, the company is providing the employee with “fresh consideration” to make the contract enforceable. Consideration is the legal word for the exchange of something of value to make contracts enforceable and in a promotion it takes the form of the increased salary that comes with the new job. If the company allows the employee to be promoted and then has the employee sign an employment contract after the promotion has already taken place, there is a chance the employee can argue the terms of the contract that were not discussed pre–promotion should not be enforced for lack of fresh consideration rendering the terms of the contract unenforceable.

Article by Simon Heath, BA, MIR, LLB, Heath Law / Employee Relations, Employment Standards, Payroll, Union Relations / consideration, employment contract, employment law, employment standards act, enforceable contract, fresh consideration, Gibbons v. BB Blank Inc., Holland v. Hostopia.com Inc., lack of consideration, promoted employee, promotion, Termination clause, termination clauses

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