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Notice of Transfer of Business to New Owner Wasn’t Proper Termination Notice

Early announcement to workers that a pulp mill was to be transferred to a new owner was not reasonable notice of termination. The company kept workers apprised of the transaction as it progressed but notice of termination was not deemed provided until the transfer was definite and a specific date was provided on which the workers would become employed by the new owner. The transfer also affected pension rights. Therefore, the BC Court of Appeal upheld a trial court’s determination that reasonable notice wasn’t provided. The Court of Appeal disagreed with the trial court’s calculation of notice damages and imposed a notice period of 15 months. It also affirmed an award of damages for lost pension benefits [Kerfoot v. Weyerhaeuser Co. Ltd., [2013] BCCA 330 (CanLII), July 12, 2013].