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ARTICLE · 23 AUGUST 2013

When Will An Employment Agreement Survive A Corporate Acquisition?

Minden Gross LLP
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THE RECENT DECISION OF THE ONTARIO Superior Court in Whittemore v. Open Text Corporation provides useful illustration of the rollercoaster ride that an employee might experience when his corporate employer goes through changes in its status.

CanadaEmployment and HR
A. Irvin Schein
A. Irvin Schein
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The recent decision of the Ontario Superior Court in Whittemore v. Open Text Corporation provides useful illustration of the rollercoaster ride that an employee might experience when his corporate employer goes through changes in its status.

Mr. Whittemore started work in 1994 with a small company called SoftArc Inc., as a software developer.

Five years later, SoftArc was taken over by another small company, MC2. MC2 had Mr. Whittemore sign an employment agreement at that time. It included a provision that on termination, an employee with more than 4 years service was entitled to 4 weeks salary in addition to the minimum statutory notice regardless of his actual length of service. It also provided for a sabbatical every 5 years.

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