Protected leave (statutory leave)
A protected leave, also called a statutory leave, is time away from work that employment standards legislation gives an employee, such as pregnancy, parental or sick leave. The employer must keep to the statute’s return and reprisal rules, and a buyer needs to know who is on leave at closing.
Each statute cited here lists its own leaves. Part XIV of Ontario’s Employment Standards Act, 2000 includes pregnancy leave and sick leave, among others. The Canada Labour Code has maternity, parental and medical leave for federally regulated employers. British Columbia’s Employment Standards Act has a part on leaves. A buyer meets the idea in diligence, when an employee on leave comes with the business. See what happens to an employee on leave when the business is sold.
What the statute says about returning
In Ontario, at the end of an employee’s leave under that Part the employer must reinstate the employee to the position most recently held, if it still exists, or to a comparable position, if it does not, unless the employment is ended solely for reasons unrelated to the leave, and subject to the other exceptions in section 53. Whether that obligation passes to a buyer is not covered here, so ask a lawyer rather than assume. An employee’s leave may also raise the duty to accommodate.
What to ask
- Who is on leave now, under which statute, and when it is expected to end
- What notices and certificates the employer has kept
- Whether any pay or benefits continue during the leave under the contract
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of OntarioGovernmentEmployment Standards Act, 2000, S.O. 2000, c. 41
- 02Government of Canada (Department of Justice)GovernmentCanada Labour Code, R.S.C. 1985, c. L-2
- 03Government of British Columbia (King’s Printer)GovernmentEmployment Standards Act
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