As an employee, it can be very unsettling if the company you work for is part of an acquisition. But what should you do if your business is involved in a change of ownership and your job can be transferred to a new employer? Below is a list of workers` rights in the event of a company closure: TUPE can also apply if you work to provide a particular service to one company and it is taken over by another company. If these services are outsourced, taken over in-house or outsourced to another company, you can also benefit from TUPE`s protection. This is usually the case when a contract for a commercial service is awarded to another contractor (e.g., cleaning or facilities management). It is also important to note that under Ontario`s Employment Standards Act, 2000, the sale of assets does not affect an employee`s basic minimum entitlement to severance pay and severance pay. In fact, it is generally assumed that employment continues uninterrupted. In other words, if the sale of the business transaction constitutes the sale of a business under the Employment Standards Act, 2000 and the purchaser decides to extend an offer of employment accepted by the employee, the employee`s employment is deemed to be continuous and uninterrupted by the sale, and the acquiring company must record each employee`s seniority (and all previous years of service) with the selling company (and all previous years). predecessors) for the purpose of exercising minimum rights under employment standards legislation. However, this rule of continuity of employment (successor employer) applies only for the purposes of the legislation; It has no bearing on the analysis of the common law (see above). 2.
Not offering employment to employees of the selling company Although not a requirement imposed by the federal government, some employers offer employment assistance in the event of business closures. This may include helping you contact an employment agency, paying a recruitment agency to help you, or referring you to their affiliates. If your employer offers employment assistance in the event of a business closure, you will likely find the terms and conditions in your letter of offer, termination agreement or employee contract. It is also important to note that when assets are sold, the buying company often simply continues to employ the former employees of the selling company and the business continues as usual. In such cases, since the employees have not signed a new employment contract with a termination clause, their customary right to fair dismissal remains in force in the future. At that time, the employer is required to give notice of termination (or payment in lieu of dismissal) prior to the end of the employee`s employment relationship based on the following factors: Although employers are not required to offer employment to employees of the asset sales company, and although the same employees are not required to accept an offer of employment from the acquiring company, this can have consequences. In particular, the asset disposal corporation is legally responsible for all severance obligations under the Employment Standards Act, 2000, the contract of employment and the common law. If the purchasing company offers an employee employment on terms “substantially similar” to those previously enjoyed, the selling company could argue that the employee did not “mitigate” his or her losses if he or she attempted to sue for damages for wrongful dismissal.
In this case, the employee may not be entitled to full severance pay under common law, and is still entitled to their minimum rights under the Employment Standards Act, 2000. If the acquiring company decides not to offer employment to the employees of the selling company, these employees are considered “terminated” from their employment relationship under the common law when the business transaction is completed. As a result, dismissed employees are usually entitled to financial compensation from the selling company (their employer). Company Policy: Employees may have rights that are covered by company policies and regulations. These rights may include renewal of benefit programs, severance pay, or written notice of business closure. There are circumstances in which the new employer may have the right to fire you as part of a reorganization – but not just because of the takeover. Sometimes employees are asked to reapply for their jobs to decide which employees to fire.
