The appellants were former employees of a bankrupt shoe retailer.
Following the bankruptcy, the employees' employment was terminated.
The Ministry of Labour filed a proof of claim for termination and severance pay under the Employment Standards Act, which the Trustee disallowed on the basis that bankruptcy does not constitute termination 'by an employer'.
The Supreme Court of Canada allowed the appeal, holding that the words of an Act must be read in their entire context and in their grammatical and ordinary sense harmoniously with the scheme of the Act, the object of the Act, and the intention of Parliament.
The Court found that interpreting the ESA to exclude bankrupt employers would lead to absurd results and defeat the remedial purpose of the legislation.
