In the recent decision of Chin v Beauty Express Canada Inc. (“Chin”), the Ontario Superior Court of Justice considered the impact of an employee’s service with a prior employer on the employee’s entitlement to reasonable notice of termination. The Court awarded the employee an elongated notice period because of this previous service, despite the fact that the defendant employer was unrelated to the original employer, was not a successor employer at common law or under the Employment Standards Act, 2000 (the “ESA”), and did not agree to recognize her prior service.
Background
The Plaintiff was a 69-year-old esthetician who worked at a beauty salon located inside a large Toronto department store. She worked for a prior employer for 14 years, until its bankruptcy in 2013. Following the bankruptcy, she worked six years for the defendant employer in the same location. Of note, she performed the same job for the same management team for entire the 20-year period, performing identical job functions for both employers. She also testified that the transition from one employer to the next was “seamless”, to the point that she was not aware of the change until six months later.
The Plaintiff was terminated without cause in 2019 and provided with approximately 11 weeks of working notice. As she did not have an enforceable termination clause in her employment agreement, she sought additional pay in lieu of her entitlement to reasonable notice of termination. Importantly, she based her...
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