Slate Not Wiped Clean by Release in Context of Share Sale

Can an employee extinguish his statutory right to severance pay by way of a full and final release signed in the context of a share sale?

According to a 2018 decision of the Court of Appeal for Ontario, Kerzner v. American Iron & Metal Company Inc., 2018 ONCA 989 (CanLII), the answer to that question is a resounding “no.”

The case has real implications for those who practice employment law in the context of the sale of a business.

Court Finds Successor Employer Liable for Previous Employer’s Pension Obligations

The common rebuttal to the slackerism “close enough” is the saying that “close only counts in horseshoes and hand grenades.” However, as the case of King v. 1416088 Ontario Ltd., 2014 ONSC 1445 (CanLII) aff’d 2015 ONCA 312 demonstrates, in cases where two or more employers are closely related, Ontario courts will be prepared to say “close enough” to ground a finding of joint and several liability.