Successor company responsible for 38-year employee’s severance and pension: Court

Various companies by related owners used similar names and employed worker for 38 years without break
|Canadian Employment Law Today|Last Updated: 05/14/2014

A new company carrying on the name of a previous incarnation is a successor employer owing a long-time employee notice of termination, the Ontario Superior Court of Justice has ruled.

Jack King, 75, joined Danbury Sales (1971), a liquidation, appraisal and auctioneering business, in September 1973 as an accountant and bookkeeper. In 1981, King signed a “retirement compensation agreement,” entitling him to retirement compensation if he remained employed with the company until he was 65 years old.

In 1987, a company called Danbury Sales Inc. (DSI) was incorporated by Danbury 1971’s owner. A new owner eventually took over and acquired the rights to the Danbury name and logo from the original owner in 1995. King helped set up the new company’s payroll and other business accounts.