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ARTICLE · 15 JULY 2016

Sale Of A Business Is Not Constructive Dismissal

Mr. Boulad was director of a hotel owned by the Westmount Hospitality Group ("Westmount") an important international hotel group.

CanadaEmployment and HR

In the decision 2108805 Ontario Inc. v. Boulad[1] rendered on January 25, 2016, the Quebec Court of Appeal overruled the trial judge who had considered that the change of employer resulting from a change of ownership constituted a unilateral and substantial modification of Mr. Boulad's essential terms and conditions of employment and therefore awarded him an indemnity in lieu of notice of termination of employment equivalent to 24 months of salary and benefits.

Mr. Boulad was director of a hotel owned by the Westmount Hospitality Group ("Westmount") an important international hotel group. Westmount sold the hotel for which Mr. Boulad was responsible to Jesta, a much smaller hotel group. Pursuant to the transaction and to section 2097 of the Civil Code of Quebec ("CCQ"), Jesta undertook to continue Mr. Boulad's employment under the same terms and conditions of employment. Mr. Boulad refused to pursue employment with Jesta and asked Westmount to relocate him

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