If a Business Is Sold, What Are Employee Rights in British Columbia?

When a business is sold in British Columbia, employees do not automatically lose their jobs — and they are not automatically owed severance pay just because ownership changes.

What matters is how the sale affects your employment.

If the sale results in your job ending, your role changing, or your employment terms being weakened, you may be entitled to severance pay or other compensation under BC law.

This guide explains what happens to employees when a company is sold in BC, including your rights if you are let go, transferred to a new owner, or pressured to sign a new contract.

Do Employees Automatically Transfer to the New Owner in BC?

Sometimes — but not always.

Whether employees transfer depends on how the business is sold and what the new owner decides to do.

In British Columbia, a business sale usually takes one of two forms:

Asset Sale

If the buyer purchases the assets of the business (equipment, property, customer lists, etc.), employees are not automatically transferred.

• Employees who are not rehired are generally considered terminated — which is treated as a termination without cause in British Columbia
• The seller is usually responsible for providing severance pay
• A new employment offer may be treated as a new job, not a continuation

Share Sale

If the buyer purchases the shares of the company, the legal employer remains the same.

• Employees typically continue working without interruptio
• If employees are later let go, the new owner is responsible for severance
• Length of service usually continues uninterrupted

Am I Entitled to Severance Pay If My Job Ends After a Sale?

Yes — if the sale results in you losing your job, you may be entitled to severance pay in BC, even if your employer claims the termination was unavoidable.

Non-unionized employees in British Columbia can be owed up to 24 months’ pay, depending on their circumstances.

Severance entitlement is not limited to full-time employees. It can apply to:

• Full-time workers
• Part-time workers
• Hourly employees

The amount of severance depends on factors such as:

• Your age
• Length of service
• Position and responsibilities
• Ability to find comparable work

What Happens to My Length of Service If the New Owner Keeps Me?

If the new owner decides to keep you on, they generally inherit your length of service.

This matters because your length of service directly affects:

• Future severance entitlements
• Benefits and compensation calculations

Example:
If you worked at your employer’s Burnaby facility for 15 years before the sale and the new owner keeps you on, your service typically continues. If you are terminated two years later, your severance should reflect 17 years of service, not just two.

Do I Have to Sign a New Employment Contract Right Away?

No.

Employers in BC can’t legally force you to sign a new employment contract on the spot.

New contracts presented after a business sale often benefit the employer, not the employee. They may attempt to:

• Limit severance to only a few weeks’ pay
• Remove recognition of prior service
• Add layoff or termination clauses that weaken your rights

Signing without legal advice can permanently reduce your entitlements.

How Is Severance Pay Calculated in British Columbia?

Severance is based on common-law principles, not just the Employment Standards Act minimums.

Courts consider the full context of your employment, including:

• Length of service
• Age
• Role and seniority
• Job market conditions

You can estimate what you may be owed using our BC severance pay calculator, but employers rarely offer full compensation without legal pressure.

Lost Your Job After a Business Sale? Get Legal Advice

If your employer sells the business and:

• You lose your job
• You are pressured to accept a worse role
• You are asked to sign a new contract immediately
• Your severance offer feels low

You should speak with an experienced British Columbia employment lawyer.

At Samfiru Tumarkin LLP, our team regularly helps non-unionized employees enforce their rights and recover proper severance after business sales.