of the managers, downsizing of the company, merging with other companies or organizations, and/or changing a department or corporate structure.
When an employer restructures their business or organization, many legal obligations need to be highly regarded and complied to avoid liabilities. For example, employers may be held liable for unilaterally changing the terms and responsibilities of long-term employees. Employers may be held liable for reducing their employees’ pay or causing a loss of prestige in the employees’ position.
Sale & Mergers of a Business
Purchase, sales or mergers of a company can have implications in the area of employment law. There are implications for both unionized and non-unionized employees.
Many standards and requirements have to be followed under the Employment Standards Act when a purchaser decides to close one of the vendor’s acquired establishments and/or perform a mass termination. It is critical to abide by these standards and requirements, to avoid possible litigation.
For unionized employees, the purchaser is bound by the obligations and rights under both the Labour Relations Act and the collective agreement.