Protect yourself when inheriting workers during a business sale

The Ontario Court of Appeal’s decision in Manthadi v. ASCO Manufacturing is a timely reminder to employers and lawyers about the possible consequences of a business sale and a lesson about the importance of employment contracts.

In a nutshell, the ruling illustrates that there isn’t a fixed rule with asset purchase transactions regarding an employer’s obligations to long-serving employees. It also is a warning that business purchasers who simply assume that they are not going to inherit the service of those employees without a written employment agreement do so at their own peril. For more click here.