In Kondaj v. Crossbridge Condominium Services Ltd., 2026 ONCA 636, the Court of Appeal considered which party is liable when a building services contract changes hands and the incoming provider chooses not to hire an employee of the outgoing provider. The Court confirmed that, in these circumstances, the incoming provider is responsible for the employee’s common law reasonable notice, in addition to any termination and severance under the Employment Standards Act, 2000 (the “ESA”).
The ESA contains a unique scheme applicable to building services employers. “Building services” is defined under the ESA as services for a building with respect to food, security and cleaning, or property management, or which relate to a parking garage or lot, or a concession stand.
Where one building service provider is replaced by a new provider, any employees of the former provider that maintain employment with the new provider are considered to have continuous service under section 10 of the ESA. Under section 75, the new employer must comply with the termination and severance obligations under the ESA, whether it chooses to hire the former employer’s employees or not, subject to limited exceptions.
This case addressed the novel issue of whether the incoming provider will also be responsible for common law reasonable notice for those employees of the outgoing provider that it chooses not to hire.
The Appellant, Mr. Kondaj, was employed by...
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