In King v. 1416088 Ontario Limited, 2014 ONSC 144, an Ontario court found that a 73-year-old employee terminated after 38 years of employment was entitled to claim wrongful dismissal damages from a newly activated company that was part of the group of corporations that had included his former employer. Although the official employer had been wound up after suffering financial difficulties, the new operation had effectively become its successor. Within a few months of the wind up, it had begun operating from the same premises and using the same equipment, had some of the same employees and used the telephone number and website of the defunct employer. On the facts, it was properly treated as the current incarnation of the business that the plaintiff had worked for over a period of 38 years.
The plaintiff was entitled to 24 months’ pay in lieu of notice, retirement compensation and costs on a partial indemnity basis. The other companies in the corporate group were sufficiently interconnected as to be jointly and severally liable, under the common employment doctrine, for those damages.