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ONCA Affirms an Offer of Employment by the Purchaser of Business Assets to an Employee of the Seller is Valid Consideration for a New Employment Contract

Posted in Common Law Severance, Employment Agreements, Employment Standards, Termination, Transactions, Wrongful Dismissal

In Krishnamoorthy v. Olympus Canada Inc., 2017 ONCA 873, the Ontario Court of Appeal confirmed that s. 9(1) of the Employment Standards Act, 2000 (the “ESA”), deems there to be continuity of employment for the purposes of the legislation only, and does not displace the common law rule that an offer of employment by the purchaser of the assets of a business is valid consideration for a new employment agreement.


In May 2000, Nadesan Krishnamoorthy began employment as a senior financial analyst with Carsen Group Inc. (“Carsen”). About five years later, in 2005, Olympus Canada Inc. … Continue Reading