Reprisal prohibition (employment standards and safety)

A buyer meets this when, before closing, a worker has made a complaint or inquiry under the Employment Standards Act or sought enforcement of the Occupational Health and Safety Act. Each Act bars penalizing a worker on the grounds it lists, so ask whether any worker has done so. This entry covers Ontario only; check the rules where you are. See employment red flags when buying a business.

What the two Ontario Acts say

• ESA s.74(1): no employer or person acting on its behalf may intimidate, dismiss or otherwise penalize an employee, or threaten to, because the employee asks the employer to comply with the Act, makes inquiries about their rights, files a complaint with the Ministry or exercises or attempts to exercise a right under it, among other listed reasons.
• OHSA s.50(1): no employer or person acting on its behalf may dismiss, discipline, suspend, penalize, intimidate or coerce a worker, or threaten to, because the worker acted in compliance with the Act, the regulations or an order under them, sought the Act’s enforcement, or gave evidence in an enforcement proceeding or a coroner’s inquest.
• OHSA s.50(2): a worker who complains may use arbitration under a collective agreement, if any, or file a complaint with the Board.

What to ask

Ask the seller about open complaints, inspector visits, grievances and any recent discipline or terminations that followed one. For related money claims, see order to pay.