corporate transactions

The Supreme Court of Canada will decide if an employee is entitled to payments owed in the event of a corporate acquisition despite the fact that the employee resigned over a year before the triggering event. On January 31, 2019, the SCC granted leave to appeal in Matthews v. Ocean Nutrition Canada Limited. The employee asserts that he is entitled to over $1 million in profits following the acquisition of his former employer – even though he had resigned 13 months before the transaction. If the SCC decides in the employee’s favour, employers may face more challenges (and increased litigation) when seeking to enforce limiting clauses in employment agreements.
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On August 2, 2018, the Supreme Court of Canada refused the plaintiff’s leave application in Krishnamoorthy v Olympus Canada Inc, 2017 ONCA 873. As such, the Ontario Court of Appeal’s ruling still stands. The ONCA held that a purchaser of assets of a business is free to offer employment on new terms to employees