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Buying & Selling a Business

Does it matter for successor employer status whether there's a gap between the seller closing and me reopening?

TSL Written by the Treadstone Law team· Updated August 2026

Yes, timing matters directly here. Under the Employment Standards Act's continuity rule, an employee's service generally continues to count with you only if you hire them within a limited window — specifically, within thirteen weeks of the earlier of the employee's last day of work with the seller and the date of the sale. A gap longer than that window generally means statutory continuity doesn't apply, even if you're otherwise clearly continuing the same business.

This matters a great deal for a buyer planning any renovation period, licensing delay, or gap before reopening, since it's tempting to assume that as long as the business eventually reopens under the same name in the same location, continuity will automatically follow. It doesn't work that way — the specific timing of when you actually hire (or rehire) each employee relative to the sale and their last working day is what the rule looks at, not simply whether the business eventually resumes.

If you're planning any gap before reopening, get specific advice on how it affects continuity for the employees you intend to bring back. A Treadstone business lawyer can help you plan hiring timing around this rule.

Key takeaways

  • Continuity generally requires hiring within thirteen weeks of the relevant sale or last-work date.
  • A longer gap can mean statutory continuity doesn't apply, even if the same business reopens.
  • The rule looks at specific hiring timing, not simply whether the business eventually resumes.
  • Get advice on continuity before planning any gap between closing and reopening with returning staff.
This is general information, not legal advice. It doesn’t create a lawyer–client relationship, and the rules can change. For advice on your situation, a Treadstone business lawyer can help.
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