On Thursday 27 July, 2006 the Supreme Court of Canada released its decision in the TCT Logistics (“TCT”) case. The Supreme Court of Canada’s decision substantially heightens the risk that a court-appointed receiver or trustee in bankruptcy that operates a debtor’s business, employing the debtor’s employees, will be found to be a successor employer for the purposes of employment and labour law and liable for many of the obligations of the debtor to its employees.

type Bankruptcy Update - August 2006 - Successor Employer Liability - The Gates Are Open