Lulled into false sense of security

Employer had employees sign a new employment contract when it had already decided to fire them
|Canadian Employment Law Today

In September 1991 Brent Bryde began working for The Prudential Insurance Company of America. By 1993 he was promoted to the position of claims unit manager. From September 1996 Mr. Bryde was on disability. Although he received his last disability payment on Nov. 8, 1996, Mr. Bryde did not return to work due to his ongoing disability.

On Nov. 18, 1996, the employees of Prudential received a letter from both Prudential and Liberty Mutual Insurance Company confirming that Liberty was acquiring Prudential and that the purchase and sale agreement was expected to complete on Dec. 31, 1996.

On that same date each employee of Prudential received a letter from Liberty entitled “Offer of Employment.” Mr. Bryde received such a letter which extended to him an offer of employment with Liberty effective on the day following the closure of the acquisition. His title and salary would remain the same and initially so would his duties and reporting functions. Mr. Bryde accepted the offer, signed the letter and returned it to Liberty.