The applicant sought a review of an Order to Pay finding it liable as a successor employer for vacation pay accrued by employees prior to the bankruptcy of the predecessor employer.
The applicant argued that the bankruptcy terminated the employees by operation of law, crystallizing the vacation pay debt against the bankrupt estate rather than transferring it to the purchaser.
The Adjudicator/Referee held that employees who continued to work were not terminated by operation of law, and their employment was deemed continuous under the Employment Standards Act.
The applicant was therefore liable for the accrued vacation pay.
The Order to Pay was confirmed.
