No Worker Left Behind: Human Rights Risks In Fast Moving Corporate Transactions

Overview

This case arises from a common business scenario — a fast‑moving asset purchase deal — but resulted in a costly human rights ruling. In Morasse v. Brandt Tractor Ltd., the Human Rights Tribunal of Ontario (“HRTO” or the “Tribunal”) and, later, the Ontario Divisional Court (the “Court”) confirmed that employees on maternity or parental leave cannot be excluded from hiring decisions during a business transition.

The decisions reinforce a core human rights principle: even seemingly neutral, business‑driven policies may be discriminatory if they disproportionately disadvantage employees on protected leaves.

Facts

The applicant was an employee of Nortrax Canada Inc. (“Nortrax”). She was on maternity leave when Nortrax sold substantially all of its assets to Brandt Tractor Ltd. (“Brandt”).