If your employer sells the business in BC, you don’t automatically lose your job or become entitled to severance pay. Your rights depend on whether your employment continues, whether your job changes and whether you’re terminated.
If you continue working for the new owner, your previous years of service are protected under BC employment standards law. If you lose your job because of the sale, you may be entitled to substantial severance pay in BC.
⚠️ Your employer is selling the business? Don’t resign or sign a new employment agreement before understanding your rights. You could lose valuable severance protections.
Reviewed by: Lior Samfiru, Employment Lawyer and National Co-Managing Partner
On This Page
- What Happens When a Business Is Sold?
- Do Your Years of Service Carry Over?
- Can the New Owner Change Your Job?
- Do You Have to Sign a New Contract?
- Are You Owed Severance Pay?
- What Should You Do?
- Frequently Asked Questions
- Get Legal Help
What Happens to Employees When a Business Is Sold in BC?
A business sale doesn’t automatically end your employment. You may continue working under the new ownership, receive a new employment offer or be terminated.
The outcome can depend on how the business is sold:
- Share sale: The company changes owners, but the legal employer usually stays the same. Employees typically continue working.
- Asset sale: A buyer purchases the business or its assets. Employees may receive offers from the buyer or have their employment terminated.
The distinction matters for employment contracts and potential severance claims. However, BC’s Employment Standards Act protects continuity of service for employees who remain employed following a qualifying business sale.
Do Your Years of Service Carry Over When a Business Is Sold?
Yes. If you continue working after a qualifying business sale in BC, your previous employment is treated as continuous under the Employment Standards Act.
Section 97 protects your length of service for statutory employment entitlements, including termination notice and vacation rights.
- For example: If you worked for a Vancouver company for 10 years before it was sold, and the new owner keeps you employed, those 10 years aren’t automatically erased.
If the new owner later terminates your employment, your earlier service must be recognized when calculating minimum statutory termination entitlements.
Your full common-law severance rights can depend on additional factors, including the sale agreement, continuity of employment and any new contract you sign.
Can the New Owner Change Your Job After Buying the Business?
The new owner may make reasonable changes, but a major unwanted change to your job could amount to constructive dismissal.
Examples include:
- A significant pay cut
- A demotion or loss of management responsibilities
- A substantial reduction in working hours
- Moving you into a completely different role
If the changes fundamentally alter your employment without your agreement, you may be entitled to severance even if you haven’t been officially fired.
Learn more about constructive dismissal in BC and changes to your job description in BC.
Do You Have to Sign a New Employment Contract After a Business Sale?
Don’t assume you must sign a new agreement simply because the business has changed owners.
A new contract may contain terms that reduce your rights, including:
- Clauses limiting severance pay.
- Restrictions on bonuses or benefits.
- New probation or termination provisions.
- Terms attempting to limit recognition of your previous service.
The buyer may make a new employment offer, and refusing it can have legal consequences. However, you should understand the terms before agreeing.
Your minimum statutory rights can’t simply be eliminated through a contract.
Read our Employment Agreements in BC guide before signing.
💡 Important: A business sale is not a reason to sign away your existing rights. Have any new employment agreement reviewed before accepting it.
Are You Owed Severance if Your Employer Sells the Business?
Yes, you may be entitled to severance if your employment ends because the business is sold. However, the sale itself doesn’t automatically trigger severance.
Your entitlement depends on whether you’re terminated, whether your employment continues and whether you receive a reasonable offer of comparable work.
For non-unionized employees, full severance can depend on:
- Your age
- Your total length of service
- Your position and responsibilities
- Your ability to find comparable employment
- Your employment agreement
In appropriate cases, full severance can reach up to 24 months’ pay.
Read our Severance Pay BC guide or use the Severance Pay Calculator for an initial estimate.
If your employer has ended your employment, see our guide to termination without cause in BC.
What Should You Do if Your Employer Sells the Business?
- Don’t resign. Leaving voluntarily could affect your severance rights.
- Don’t rush to sign a new contract. Review any changes to your salary, duties, benefits and termination rights.
- Keep your records. Save your original employment agreement, pay statements and any new offer.
- Confirm your years of service. Make sure your previous employment is properly recognized.
- Speak with an employment lawyer. Find out whether you’re entitled to severance or whether the new contract limits your rights.
Business Sold BC: Frequently Asked Questions
If my company is sold, do I lose my job?
Not automatically. You may continue working under the new ownership. Whether your employment ends depends on how the sale is structured and what happens to your position.
Can a new owner reset my years of service?
Not for minimum employment standards entitlements where BC’s continuity-of-employment rules apply. Your previous service must be recognized.
Can I refuse to work for the new owner and get severance?
Not automatically. Refusing a reasonable offer of continued employment may affect your severance rights. Get advice before rejecting an offer.
Am I owed severance if the business is sold?
You may be entitled to severance if your employment is terminated. If your job continues on comparable terms, the sale alone doesn’t automatically create a severance entitlement.
What if the company closes instead of being sold?
A business closure raises different issues. If your employment ends because the company shuts down, you may still be entitled to compensation. See our Company Closing BC guide.
Employer Selling the Business in BC? Know Your Rights.
If your employer is selling the business, don’t assume you must accept a new contract, reduced compensation or a lower severance offer.
The BC employment lawyers at Samfiru Tumarkin LLP help non-unionized employees across British Columbia understand their rights when a business is sold, review new employment agreements and recover severance pay.
Before you sign, always check first.
➡️ Get a Consultation or call 1-855-821-5900.