Former employer pays after relationship with successor sours

B.C. court awards former Philips Electronics worker 12 months’ pay in lieu of notice — clause at time of sale could have avoided problem
By Stuart Rudner
|Canadian Employment Law Today

The British Columbia Court of Appeal recently addressed an unusual situation in which a worker brought a wrongful dismissal claim against his former employer after agreeing upon a termination package with its successor. Ultimately, the court found there was nothing prohibiting such “concurrent” claims.

Thomas Major was employed by Philips Electronics for about seven years. In 2001 he was asked to relocate from the United States to Richmond, B.C., to take the position of site manager at its plant there.

He agreed, and moved to B.C. in May. Two months later, in July, Philips announced it would be shutting down the plant in Richmond and all employees would be terminated effective Aug. 31.