When a vendor employer corporation is sold, can an employee be constructive dismissed if they continue to behave as if they were not advised of the sale?
Ontario, Canada
The following excerpt is from Salazar v. Murt Canada Inc., 2006 CanLII 9983 (ON SC):
In short, this is not a case which comes within the proscription against the assignment of a contract for personal services. She continued to behave as though she was an employee and was not advised of the sale. The rule referred to in Addison v. Loeb resulting in the constructive dismissal of employees when a vendor employer corporation is sold is based on the principle that contracts of personal service cannot be assigned without the consent of the parties. As outlined above, this principle has its roots in the history of slavery and the principle that human beings are not chattels who may be assigned, and as such, it is a principle that is rooted in the protection of vulnerable employees. An employee who continues to work and be paid by the new corporation clearly becomes an employee of that new corporation.
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