Selling, Closing, or Buying a Business? Consider Your Employment Law Liabilities! (Part II)

buying a businessBuying a Business

This post will explore some of the employment law issues that should be considered if you’re purchasing a business.  Employment law-related factors to review when selling or closing your business were covered in Part I.

This post focuses on businesses with non-unionized workforces.  Unionized workplaces have their own distinct issues that must be addressed when purchasing a business and a lawyer should be consulted regarding those as well.

Strong entrepreneurial spirits truly are critical components of any healthy economy.  Many people dream of being their own boss – directing the growth of a company and taking an active role in their own future prosperity while providing a product or service that they are passionate about.  Purchasing a business with an established business model and customer base can be a great way to give yourself a head start on these goals, but it’s essential to consider all of your possible risks and liabilities when doing so.  Completing a fulsome review of your potential employment law risks as part of your due diligence is the best first step to protecting your investment.  You can’t know what other actions will be helpful without taking this initial step. 

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Boomerang Employees Part 2 – The Employment Law Implications of Rehiring a Past Employee

Rehiring a Past EmployeeIn our recent blog, we addressed boomerang employees and, specifically, the HR issues surrounding them. We know you’ve been eagerly awaiting part two where we promised to address the employment law implications of rehiring a past employee, so here we go! Below we will do a deep dive into the various legal issues that may arise when hiring boomerang employees. 

1. Reference checks, past agreements & restrictive covenants  

Employers may be eager to hire back a past employee for a seemingly easier transition and less training but it’s important for employers to do their background research into what the employee has been doing since they left your company. While a reference check may not be top of mind for an employee you know, it is a step that should not be overlooked. If the boomerang employee was fired from previous employment during the gap from their company, this is something you’ll want to know and the reasons will likely affect your decision to rehire them. 

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Mitigation Part 2: No Requirement to Search for Less Comparable Positions Over Time

Mitigating less comparable positionsEmployees suing former employers for wrongful dismissal damages are obligated to “mitigate” their damages, and a failure to do so may lessen the damages awarded by a Court. In Part 1 of this series, we provided a general overview of the employee’s duty to mitigate. In Part 2, we are delving into specific mitigation issues: whether an employee is required to seek out lower paying positions after an unsuccessful period of searching for a more comparable role; whether job titles of the positions applied for matter; and how employers meet the onus of showing an employee has not met their duty to mitigate. These questions were answered by the Ontario Court of Appeal in Lake v. La Presse, 2022 ONCA 742. Note that the decision discussed here overturned Lake v. La Presse (2018) Inc., 2021 ONSC 3506, which we covered in a previous blog post. 

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Mitigation Part 1: What is the Duty to Mitigate in Claims of Wrongful Dismissal?

Duty to Mitigate in Claims of Wrongful DismissalThe duty to mitigate is one of the few employee obligations in a wrongful dismissal dispute, and it can reduce a defendant employer’s liability significantly. 

What is the Duty to Mitigate?

The duty to mitigate requires an employee to take reasonable steps to secure comparable employment after they have been wrongfully dismissed. When an employer wrongfully dismisses an employee, unless there is enforceable contract language to the contrary, the employee is entitled to damages for pay in lieu of common law reasonable notice. 

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A Fresh Year and a Fresh Look At Your Workplace Policies

Workplace policies: A Fresh Year, A Fresh LookAh, the glow of a fresh new year! It’s human nature to use the holiday season and the start of the new year as a time for self-reflection. As Labour, Employment and Contracts lawyers, we can’t help but suggest you also bring this energy to your business and take a fresh look at your workplace policies.

There are many legally required workplace policies here in Ontario, each with legally required components. Beyond those that are legally required, you likely have or want some other workplace policies in place. Read on for a refresher on those legally required policies and tips and tricks for your review.  

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Boomerang Employees – What Employers Need to Know about Rehiring Past Employees

Hiring Boomerang Employees - What Employers Need to KnowAs we all know, the pandemic has had lasting effects on the employment world. Some of the major trends we saw were mass layoffs, terminations, downsizing, and of course, the infamous move to remote work. Another trend we saw across the board was mass resignations as the pandemic led to many employees reevaluating their career paths. With the pandemic trends seemingly in the past, an anticipated recession on the horizon, and things getting back to “normal”, the newest trend we are seeing in employment is rehiring and a surge in boomerang employees. 

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