Severance obligation didn’t end when successor employer took over

B.C. court rejects company’s claim that it no longer owed pay in lieu to an ex-employee who went on to work under the same terms of employment for a successor employer
|Canadian Employment Law Today

Major v. Philips Electronics Ltd., 2005 CarswellBC 666, 2005 BCCA 170 (B.C. C.A.)

The British Columbia Court of Appeal has rejected a company’s claim that it no longer owed pay in lieu to an ex-employee who went on to work under the same terms of employment for the company which took over the business.

Thomas Major was a manager for Philips Electronics Ltd. In May 2001 he became the site manager of a plant in Richmond, B.C. That July the company was sold to Holley Communications Canada Inc., which offered Major employment on the same terms he’d had with Philips.