The role of successor employers

Watch out — you might be a successor employer
By Peter L. Biro
|Canadian Employment Law Today

Background

A recent Ontario Superior Court of Justice decision (which is headed to the Ontario Court of Appeal) should be of special interest to anyone purchasing a business from a trustee in bankruptcy as well as to receivers and trustees themselves. The message to all of them is “watch out” — they just might be “a successor employer.”

It has been generally accepted that the employment of all employees is terminated upon the bankruptcy of an employer corporation.