In Antchipalovskaia v. Guestlogix Inc., 2022 ONCA 454, the employer appealed a decision that the employee was entitled to 12 months’ notice for her dismissal without cause, which was based in part on a finding that she was continuously employed from 2011 to 2019. The Court of Appeal for Ontario (OCA) allowed the appeal because in assessing reasonable notice, the motion judge erred in failing to give any effect to the employee’s termination in 2016 and a court-ordered release of claims in the context of creditor protection proceedings under the Companies’ Creditors Arrangement Act (CCAA). Following this termination, the employee was immediately re-hired on the same terms as her previous employment. The OCA found that the employee’s earlier period of employment was relevant to the notice period’s determination. On this basis, the OCA substituted a seven-month notice period for the 12 months.
Background
The employee commenced her employment in July 2011. In 2016, in the context of CCAA proceedings,1 the employer terminated the employment. As part of those proceedings, the Superior Court ordered that the employer’s creditors be paid (this included the employee who was a former employee when the order was made), and that any claims by creditors would be released (Release) pursuant to the Plan of Compromise and Arrangement2 (Plan). The employer then immediately re-hired the employee on the same terms as her previous employment. The employer relied on the “without cause”...
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