Sick leave

A buyer meets sick leave when the staff who come with the business have entitlements the seller has already built up or promised. In Ontario, section 50 of the Employment Standards Act, 2000 says an employee who has been employed for at least two consecutive weeks is entitled to a leave of absence without pay because of a personal illness, injury or medical emergency, subject to the annual limit in s.50(2).

How it works

The Ontario ministry’s sick leave guide says that if an employment contract, including a collective agreement, provides a greater right or benefit than the sick leave standard, the contract’s terms apply instead. Its continuity guide says that when the business is sold and an employee keeps working for the new owner, the previous employment with the seller must be recognized, except where the new owner hires the employee more than 13 weeks after their last day with the seller or the day of the sale, whichever is earlier. Federally regulated employers fall under the Canada Labour Code, s.239, which lists personal illness or injury among the reasons for medical leave and provides for medical leave with pay, subject to its limits and the regulations. A paid day under the Code must be paid at the employee’s regular rate of wages for normal hours.

What to ask

• Whether provincial or federal law governs the business.
• Whether a contract, policy or collective agreement promises more than the statute.
• Who is on a sick leave now, and what the seller has recorded about it.

See what happens to an employee on leave when the business is sold and protected leave. This entry covers Ontario and the federal Code only; check the rules where you are.