When an employee is transferred as part of an asset transaction, the buyer will become the successor employer in accordance with provincial employment legislation. As well, the transferring employee will retain any entitlements accrued prior to closing in the predecessor employer’s plans.
Consideration should also be given to employees who are not actively working at the time of the closing. Employees on leave, disability or temporary layoff may be considered active for pension and benefit purposes, and the parties must agree on whether those employees will transfer from the seller to the buyer. Typically, offers of employment made to employees on leave will be conditional on their ability to return to active work within a certain amount of time after the closing date.
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Insights
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Employment, Pensions and Executive Compensation
Bill C-228: The Pension Protection Act – It’s Time to Prepare
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Employment, Pensions and Executive Compensation
Treatment of Canadian Retirement Plans in M&A Transactions
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Financial Services Regulatory
FSRA Initiates Consultation on Guidance for Principles-Based Regulation
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Employment, Pensions and Executive Compensation
Restricting restrictive covenants, Canadian Lawyer
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Employment, Pensions and Executive Compensation
Bill 27 Prohibition on Non-Competition Clauses in Ontario Employment Contracts Amended to Include Exception for Executives
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Corporate and Commercial Litigation
Ontario Introduces Legislation Prohibiting Non-Competition Clauses in Employment Contracts and Requiring Right-to-Disconnect Policies for Employees
On October 26, 2021, the Ontario government introduced Bill 27, Working for Workers Act, 2021. Among other changes, the Bill amends the Employment Standards Act, 2000 (“ESA”) to add a prohibition…
Featured Work
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Mergers and Acquisitions
Classic Fire + Life Safety expands in Western Canada
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Mining
Hudbay Minerals to buy Copper Mountain Mining
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Mergers and Acquisitions
Gamut Capital Management to Acquire Extreme Reach
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Mergers and Acquisitions
Chair-man Mills Corp. acquires Higgins Event Rentals
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Energy
Brantford Power merges with Energy+ to form GrandBridge Energy
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Mergers and Acquisitions
Brookfield Infrastructure's Sale of North American District Energy Business for $4.1 Billion
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News & Events
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- 03:30 PM Technology
Brian Sweigman at EVOLVE: Benefits and Workforce Strategies Summit
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Banking and Financial Services
The Canadian Legal Lexpert Directory 2023 Continues to Recognize Goodmans
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Brian Sweigman at WLG's Crossing Borders: Remote Work Americas
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