Strevens v. Lawson Mardon Group Ltd.
Constructive Dismissal: Employee Claims Rights After Business Sale
Summary
A constructive dismissal case where an employee continued working for the purchaser of Lawson Mardon Group Ltd. after the asset sale. The employee claimed constructive dismissal by Lawson Mardon upon the sale, but the court applied common law principles and the Employment Standards Act to assess the situation. The court also determined that the employee consented to a novation of his employment contract and rejected the existence of an 18-month transition period for employees in takeover situations.
Outcome
Constructive dismissal claim dismissed; novation of employment contract found; no 18-month transition period recognized.
Award
Plaintiff received $50,000 payment contingent on accepting new employment with L.G.T.
Key Factors
- constructive dismissal
- sale of business
- novation of employment contract
- transition period
- Employment Standards Act
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