Re Rizzo & Rizzo Shoes Ltd
Re Rizzo & Rizzo Shoes Ltd is a 1998 judgment from the Supreme Court of Canada regarding the priority of employees interests when a company declares bankruptcy. The judgment hinged on the interpretation of the Employment Standards Act and has been taken to mark the Supreme Court of Canada's adoption of the purposive approach to legislative interpretation. It has since been frequently cited in subsequent decisions of Canadian courts, nearly every time legislation is interpreted. Background Rizzo & Rizzo Shoes Ltd. filed for bankruptcy; employees subsequently lost their jobs. The company paid all wages, salaries, commissions, and vacation pay through termination. The Ministry of Labour for the Province of Ontario audited the company to ensure that no further payments were owed to former employees under the Employment Standards Act (ESA). Proof of claim was submitted to a trustee, who subsequently disallowed the claim. According to the trustee, a company's bankruptcy does not constitute dismissal from employment; thus, the former employees of Rizzo & Rizzo Shoes gained no positive right to severance, termination or vacation pay under the ESA. The case went before the Ontario Court (General Division) where the judge agreed with the Ministry of Labour and allowed the former