The liabilities of vendor and purchaser for employee entitlements upon termination can become a major issue in negotiating the sale of a business. Section 64 governs statutory severance pay, which is payable only to an employee severed without cause, as defined, who has five or more years'
Severance pay obligations to employees can be a substantial yet often overlooked obligation in the context of a purchase and sale of a business. Whether an asset sale or share sale, the vendor and purchaser must address severance pay issues before consummating a transaction. In this post, we will