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Buying & Selling a Business

Will my parental leave still be protected if the business is sold while I'm off?

TSL Written by the Treadstone Law team· Updated August 2026

Yes. Being on a protected leave when your employer's business is sold doesn't put your job at extra risk, and it doesn't reset your entitlements either. Ontario's Employment Standards Act, 2000 gives employees the right to job-protected leaves, including parental leave, and separately treats your employment as continuing, not restarting, when a business is sold and the new owner takes over its staff.

Put together, this generally means the new owner steps into the same position the old employer was in: it must reinstate you to your same or a comparable position when your leave ends, and can't treat the change in ownership as an excuse to end your employment or your leave rights while you're away.

What can get complicated in practice is communication — you may not hear directly from a new owner while you're off, and administrative details like benefits enrollment or payroll changes can be handled poorly during a transition. That's worth following up on, even from leave, so nothing falls through the cracks. If you're told your leave or your job is at risk specifically because of the sale, push back and get advice promptly, since that reasoning alone isn't a lawful basis to end your protected leave rights.

Key takeaways

  • Parental leave protections carry over to a new owner along with your continuous service.
  • The new employer must reinstate you the same way the old one would have had to.
  • A sale isn't a lawful reason on its own to end your leave or your job.
  • Following up on benefits and payroll details during the transition, even from leave, is worthwhile.
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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