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What happens to employees if a business is sold?

Region: Ontario Answer Number: 592

If a business is sold to a new owner there are rules that the new owner must follow regarding the existing employees. Generally, an employee should not lose any rights or money because the business was sold.

Employee rights under new owner

If the employee keeps their job, usually the employee is entitled to maintain their seniority with respect to all the benefits and rights that they enjoyed before the sale of the business.

Employee rights if fired or constructively dismissed by new owner

If the employee is fired or constructively dismissed, the new employer will be responsible for giving the employee notice or pay instead of notice. Constructive dismissal means a fundamental change whereby the new employer took away some of the employee’s significant benefits and materially reduced their pay, or demoted them. In some cases, the employer may also be responsible for giving the employee severance pay.

If you work for a business that is sold, and you lose your job without proper notice or pay, or if you lose any rights or pay, it may be considered wrongful dismissal, and you may be able to sue both the former and the new employer.

A criminal record will appear on an employment police check and will affect your ability to get or keep a job. To erase your criminal record, call toll-free 1-866-898-7767 or  learn more at Pardon Pros. It’s easier than you think.

For legal advice and assistance with employment matters, contact our preferred Employment lawyers and see who’s right for you: 

Levitt Employment Lawyers

Samfiru Tumarkin LLP



Samfiru Tumarkin Employment Ontario All Topics Sept 2017Samfiru Tumarkin Employment Ontario All Topics Sept 2017

Levitt April 2017 Ontario Employment Law Topic 592Levitt April 2017 Ontario Employment Law Topic 592

Pardon Pros Employment Ontario Sept 2017 – All topicsPardon Pros Employment Ontario Sept 2017 – All topics




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