Common use of Where Successor Rights have application Clause in Contracts

Where Successor Rights have application. (i) In the event of a sale, lease, transfer or other disposition of all or part of AECL’s business where successor rights do apply, AECL recognizes that when an employee is transferred to a new employer a layoff cost could occur if the employee is subsequently laid off by the new employer. (ii) In the event of layoff by the new employer, AECL accepts that portion of the liability for termination compensation on layoff calculated on the basis of the length of service and salary with AECL at the time of transfer to the new employer and Article 31.04 of the Collective Agreement between AECL and PIPSC expiring 2003 June 30. (iii) Should an employee be subsequently laid off by the new employer, AECL will guarantee that the employee will receive that portion of his/her termination compensation on layoff based on b(ii) above.