In Gascon v Newmont Goldcorp. (“Gascon”),[1] an Ontario court has sent a strong warning to employers about the consequences of misleading employees into believing that they will remain employed following a sale of business.
Background
In November 2019, Newmont Goldcorp (“Newmont”) entered into an agreement to sell its Red Lake Mine to Evolution Mining (“Evolution”). The anticipated completion date of the transaction was March 31, 2020. As Newmont’s General Manager and most senior employee on site, Mr. Gascon was instrumental in facilitating the $375-million sale between November 2019 and March 2020.
Prior to entering into the purchase agreement with Evolution, one of Newmont’s Vice Presidents had assured Mr. Gascon that he would be “going with” the Red Lake Mine when it was sold to Evolution. Mr. Gascon understood this to mean that his employment would continue with Evolution after the closing of the transaction.
In mid-March 2020, Mr. Gascon asked the Vice President about his long-term incentive grants and a merit increase, which he usually received from Newmont in late February or early-March. Mr. Gascon was advised that Newmont was working with Evolution to replace these entitlements after the closing of the transaction. The Vice President also asked Mr. Gascon for his cooperation to continue performing his duties prior to the closing.
At about the same time, Newmont learned...
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