Employment standards complaint

A buyer meets this term when diligence asks whether any current or former employee has complained about unpaid wages or termination pay. An open complaint can point to a liability, so it is a question for the seller.

Two provinces compared

• Ontario: a person alleging the Act has been or is being contravened may file a complaint with the Ministry in a form approved by the Director (s. 96(1)). A complaint about a contravention that occurred more than two years before filing is deemed not filed (s. 96(3)). The ministry guide says generally a claim cannot be filed if the person has taken court action for the same issue or is represented by a union and covered by a collective agreement.
• British Columbia: the Employment Standards Branch takes complaints, and for an employee whose employment has ended the complaint must be delivered within 6 months after the last day of employment (s. 74(3)); the director may extend the time in special circumstances where an injustice would otherwise result (s. 74(5)).

What to ask

Ask whether any complaint is open, which body holds it and what outcome is claimed. This entry covers Ontario and British Columbia only; check the rules in the province where the business is. See what employment liabilities you inherit and the employment standards act.