Time as part owner also service time for notice period: Court

Fired president was never in full control of company and transfer agreement gave credit for time with predecessor
|Canadian Employment Law Today

A former CEO of a Nova Scotia company is entitled to notice based on his full service with the original company after the new owner terminated him, the Nova Scotia Supreme Court has ruled.

Daniel Murphy, 50, began working for Halifax-based Atlantic Nova Print Company (ANP), a company co-owned by his father, in 1980. He was involved in the company’s printing operations and later served as the production manager. In 1990 he was appointed CEO.

In January 1998, Murphy’s father died and he inherited his father’s shares. In October 1999, Murphy and two other shareholders sold their shares in ANP to Newcap Inc. As part of the transaction, Murphy resigned as a director of ANP and became the president of Newcap’s printing operations.