Dismissal And Employment Law Newsletter | Related Employer

After 14½ years working for related employers, employee was terminated and offered eight weeks' working notice of termination despite accumulated service

By: Howard A. Levitt ; Editor: Stephanie Wiebe

EMPLOYMENT — Employment standards — Related employer — Claimant, IT specialist, was employed for over 14 years by series of associated companies, was terminated and offered eight weeks’ working notice of termination — Claimant was employed variously as produce manager, vice-president and president of software employer A — Employment contract was assigned to employer AI in June 2011; employer O then acquired AI’s assets from receiver — AI’s president and director formed company SC — Claimant was named president of SC in July 2013 while being paid by AI — Claimant began being paid by SC in 2014, but employment was eventually terminated in January 2015 — Director’s September 2015 order required that companies AI and/or SC and/or O pay claimant pay in lieu of notice, unpaid wages and vacation pay totaling $104,563.95 — Order was upheld by board on appeal — Employer appealed — Appeal dismissed — Board did not err by failing to consider claimant’s reinstatement to his former position as appropriate remedy — Board dealt with issue and employers made it clear they did not want claimant back; and claimant did not wish to return to his job — Board did not err in awarding common law reasonable notice damages — Board did exactly what it was statutorily empowered to do and it was reasonable exercise of its statutory jurisdiction — Board did not err in finding that employment contract between parties was not binding in circumstances because it violated minimum standard established by Labour Standards Code (N.S.) — Assumption of broad remedial powers by board when awarding claimant 12 months’ notice as appropriate amount of damages was reasonable interpretation of its home statute.
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