Related employer

Buyers meet the idea when the target belongs to a group of corporations that share staff, payroll or management. Ontario ESA s.4(1) applies if associated or related activities or businesses are or were carried on by or through an employer and one or more other persons. Section 4(2) then treats them all as one employer, and s.4(3) says that applies even if the activities were not carried on at the same time. Section 4(4) carves out a corporation and its individual shareholder unless the shareholder is a partner holding the shares for the partnership.

Other provinces

British Columbia’s Employment Standards Act s.95 is differently framed: if the director considers that businesses, trades or undertakings are carried on by or through more than one corporation, individual, firm, syndicate or association under common control or direction, the director may treat them as one employer. Other provinces differ. Whether buying part of a business can create the status is covered in can I become a related employer just by buying part of a business.

• Ask for the group structure and which entity paid each employee
• Ask whether any employment standards order named more than one company
• Compare the group with the statute’s wording in the province where staff work