How does the sale of assets impact wrongful dismissal claims?

sale of assets impact wrongful dismissal claims

The unexpected loss of employment can be a stressful and traumatic event. Especially when the dismissal is found to be wrongful, it can have devastating effects on one’s finances, mental health and career prospects. In addition, if the termination is the result of a violation of one’s rights (such as discrimination or retaliation) it can be a violation of human rights laws as well.

In most cases, when an employee is terminated by their employer in Ontario they are entitled to a certain amount of severance pay, depending on the nature and circumstances surrounding their firing. If severance pay is not paid in full, or if a termination clause restricts the severance amounts payable, the dismissed worker may file a claim for damages for wrongful dismissal.

When a case of wrongful dismissal goes to trial, the plaintiff must establish that they were unfairly removed from their job and that the termination was a breach of the employment contract. A wrongful dismissal case will also require an economic expert to calculate the loss in income resulting from the termination. In order to estimate future earnings, the expert must build a hypothetical world known as the but-for world. The estimated but-for earnings must be discounted in order to reflect the time value of money, i.e. that a dollar earned in the future is worth less than a dollar received today. The estimate of damages in the but-for world will be further impacted by economic conditions, such as a recession, that could impact future earning potential.

How does the sale of assets impact wrongful dismissal claims?

As the economy slows down, this may lead to an increase in the number of wrongful dismissal claims filed. However, it is important to note that there has not yet been a correlation between a surge in wrongful dismissal toronto and a change in settlements or damages. This is because many of the inputs that go into the calculation of damages are external factors beyond an individual’s control, such as interest rates and unemployment data.

In a sale that is classified as an asset purchase, the purchaser will typically be required to offer the employees of the vendor company employment in accordance with TUPE. If the purchaser fails to comply with TUPE, they can be held jointly and severally liable to pay compensation to affected workers for up to 13 weeks uncapped pay.

If you believe that your employer has broken the law and fired you for a reason that violates your employment rights, contact an experienced wrongful dismissal lawyer in Toronto. The skilled team at Samfiru Tumarkin LLP has helped tens of thousands of former employees secure fair severance pay amounts following their firing. We can help you too. Contact us today to arrange a free consultation. We can review your personnel files, determine whether you have a case and if so, how to proceed. We’ll help you determine the right amount of damages to pursue. We can get you justice. You can count on us to stand by you in your time of need.