The appellant employer appealed a Small Claims Court decision awarding the respondent employee statutory severance pay.
The appellant argued that it was exempt from paying severance under s. 9 of the Employment Standards Act because its loss of a school bus route contract to a new provider, combined with an agreement to introduce its employees to the new provider, constituted a 'sale of a business'.
The Divisional Court dismissed the appeal, upholding the Deputy Judge's finding that the mere expiry of a contract and introduction of employees to a competitor did not constitute a transfer or sale of a business entity.
