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I am thinking of buying a business and I want to fire the manager to take over the position of manager as well as owner. This will save the company money and help me to learn the business and have more control over customer relations. Is this legal? Do I have to pay severance? Manager makes $36,000 a year and has worked for 1.5 years roughly. Thanks.

Hello, and thank you for your question.

If you purchase the business and retain this manager, her seniority (1.5 years) with the company will persist under your ownership. If you then decide to terminate this manager's employment following your purchase of the business, you will be on the hook for the manager's severance entitlements. Such entitlements will be based on the manager's entire tenure with the company, including the 1.5 years she was employed with the business before you purchased it.

That said, we are happy to provide you with strategic solutions that would enable you to minimize your potential severance obligations. I would recommend giving us a call at the number below to arrange for a consultation, so we may discuss the matter further. Please do so before executing any purchase agreement.

Thank you
Lior Samfiru
Direct Tel (Toll Free): 1-855-821-5900     Email: lior@stlawyers.ca     Web: www.stlawyers.ca
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