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ARTICLE · 27 MAY 2014

Multiple Related Corporations Can Be A Common Employer

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A recent Ontario Superior Court of Justice decision has revisited the "common employer" doctrine.

CanadaEmployment and HR
Jennifer Emmans
Jennifer Emmans
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A recent Ontario Superior Court of Justice decision has revisited the "common employer" doctrine. In King v. 1416088 Ontario Limited, 2014 ONSC 1445, an employee of 38 years was found to be entitled to reasonable notice as well as his pension from one or several related corporations, regardless of the fact that the corporation that was his formal employer was no longer in operation. 

Facts

Mr. King was hired by Danbury Sales (1971) Ltd. in 1973. In 1981, he signed a Retirement Compensation Agreement which provided him with a pension should he continue employment with the corporation, its heirs, executors, administrators or successors, until the age of 65.

Danbury Sales (1971) Ltd. evolved over time into multiple different corporate entities. Some were run concurrently, and some were run consecutively; some became dormant and were later revived, and others were wound up. All were owned and/or run by the same family, spanning three generations, including

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