Working notice

A buyer or seller meets working notice when staff are to be let go around closing: the employer can give notice and keep the employee on the job, or pay termination pay instead. The statutes set the terms for the notice period, and the timing of notice against the closing date is worth settling in writing.

What the statutes require

• Ontario: during a notice period the employer shall not reduce the employee’s wage rate or alter any other term or condition of employment (s. 60(1)(a)). The section also requires the employer to pay at least regular wages for a regular work week and to continue benefit plan contributions (s. 60(1)(b)–(c)), subject to exceptions such as section 74.11, which disapplies clauses (a) and (b) for temporary help agencies and their assignment employees. The ministry guide adds that vacation cannot be scheduled in the statutory notice period unless the employee, after receiving written notice, agrees.
• Alberta: the government says an employer cannot reduce earnings or any other terms or conditions of employment during the termination notice period, and may pay termination pay rather than have the employee work.

What to ask

Ask whether notice has already been given, its length, and whether the employee is working through it. This entry covers Ontario and Alberta only; check the rules in the province where the business is. Notice under a statute is a minimum; see Bardal factors for the court-made side, and obligations when you terminate employees after buying.