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Buying & Selling a Business

Will my disability leave benefits still be there when the new owner takes over?

TSL Written by the Treadstone Law team· Updated August 2026

Your job protection while on disability leave carries forward the same way other protected leaves do — Ontario's Employment Standards Act, 2000 treats your employment as continuing, not restarting, when a new owner takes over an operating business, and separately protects your right to return to your job, or a comparable one, after a statutory leave ends.

The trickier question is often the disability benefit itself, if you're receiving payments through a group insurance or disability plan rather than statutory leave protection alone — that benefit is governed by the specific insurance policy and plan documents, not by the sale itself. If the new owner brings in a different insurer or benefits provider, there's a real risk of a coverage gap or a change in how an existing claim is administered, particularly if the transition isn't handled carefully.

This is worth following up on directly and in writing, even while you're off: ask specifically whether your current disability claim is continuing under the same insurer or transferring to a new one, and what happens to your claim during the changeover. Don't assume silence means everything is fine — get written confirmation before you need it.

Key takeaways

  • Job protection during disability leave carries forward the same way as other protected leaves.
  • The insurance benefit itself is governed by the plan and insurer, not the sale documents.
  • A change in insurer can create a real risk of a coverage or claims-administration gap.
  • Get written confirmation of what's happening to your specific claim, even while you're off work.
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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