Case Commentary

Incoming provider liable for common law notice

Ontario Court of Appeal confirms common law notice liability can follow the incoming building services provider.

An incoming condominium building services provider employed a licensed condominium manager for only a short period after taking over the service contract. Ontario employment standards successor service provider provisions preserved prior service for statutory purposes. The dispute was whether the incoming provider also faced common law notice liability reflecting that prior service. The Ontario Court of Appeal upheld the employee common law notice entitlement and dismissed the employer appeal. The reported award was 10 months reasonable notice despite only a short period directly employed by the incoming provider. Where legislation requires an incoming building services provider to recognize prior service, that statutory continuity can inform the common law employment relationship and reasonable notice analysis rather than confining the employee to service performed directly for the incoming provider. The result addresses Ontario building services successor provisions and should not be generalized to every asset purchase or change of contractor. Review relies on multiple detailed practitioner reports and Binder prior verified reporting.

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