ONCA: How To Calculate Reasonable Notice After A Court-Approved Plan Under The CCAA

Ontario's Court of Appeal has clarified the basis on which reasonable notice should be calculated when an employee is dismissed and then rehired as part of a court-approved plan of arrangement under the Companies' Creditors Arrangement Act (the "CCAA").

Background

The employee in Antchipalovskaia v. Guestlogix Inc.¹ initially commenced employment with Guestlogix as a Senior Business Analyst in July 2011.

In February 2016, Guestlogix obtained a protection order from its creditors under the CCAA (the legislation that allows insolvent corporations that owe creditors more than $5-million to restructure their business and financial affairs). In June 2016, a group of investors agreed to purchase the shares of Guestlogix on the condition that the eventual CCAA plan of arrangement (the "Plan") must contain a broad release of liabilities for employee claims arising prior to the Plan's implementation date.