No severance pay for outsourced staff

Bombardier Aerospace workers whose jobs were outsourced, and who accepted employment with the outsourcing company, have no right to severance: Ontario court
|Canadian Employment Law Today

An outsourced employee who accepts employment with the company doing the outsourcing likely has no right to severance pay from his previous employer, according to a recent Ontario court ruling.

The decision involved a group of 45 former Bombardier Aerospace employees whose department was outsourced. They accepted jobs with the new employer and then filed a claim for severance pay from Bombardier.

Before Sept. 7, 2003, the workers were employed within Bombardier’s information technology services (ITS) group in Downsview, Ont. All had a minimum of five years of service to Bombardier.