Does a temporary layoff the seller started become my termination liability if I don't recall them?

Potentially, yes, and this is an easy trap for a buyer who assumes a layoff already in progress is simply the seller's problem to finish. Under the Employment Standards Act, a temporary layoff that runs longer than the permitted period can be deemed a termination, triggering notice and severance obligations calculated against the employee's full length of service. If you acquire the business while an employee is already on temporary layoff and you don't recall them within the time that matters, you can be the employer on the hook when that deemed termination is triggered, particularly if continuity of employment applies to that individual as part of your purchase.

This is exactly the kind of detail that needs specific attention during due diligence: identify anyone currently on temporary layoff, understand where they stand in the applicable timeline, and decide before closing whether you intend to recall them, and by when, rather than letting an existing layoff run past its limit without a plan.

Get a full list of anyone on temporary layoff and legal advice on timing before you close. A Treadstone business lawyer can help you understand exactly where each individual stands.