When you purchase a dental practice in Ontario, your legal obligations to your staff are governed by a range of legislation including the Ontario Employment Standards Act (ESA), the Occupational Health and Safety Act, and the Human Rights Code.
Like all employees in Ontario, these pieces of legislation ensure that your employees are protected from discrimination and are entitled to safe and comfortable working conditions.
As the new owner of a dental practice where you have agreed to take on the staff, you become what is known as a “successor employer.” Here is what that means in practice.
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You inherit your employees’ contracts
As a successor employer, you are obligated to recognize and maintain the existing terms and conditions of employment for your employees. You cannot alter their contracts without renegotiating them. That includes benefits (including existing pensions or group retirement benefits), seniority, wages, vacation time, and any other terms laid out in their contract.
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Obligations for severance and notice are determined by the total length of employment — including under previous ownership
You may choose not to retain certain employees, but in that case, you are responsible for providing notice of termination or severance pay. The length of notice and the amount of severance is legislated by the ESA and based on the employees’ cumulative length of service, which includes their service under the previous owner.
Note that if you rehire an employee who was terminated before the ownership change, you may be obligated to recognize their previous service to the practice.
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You’re bound by existing collective bargaining agreements
If your employees had previously formed a union or some other form of collective bargaining, you are obligated to recognize the bargaining agent and participate in collective bargaining.
Purchasing a dental practice is a big step, which is why it’s crucial to have the right team supporting you. At Blackburn our expert team in Dental & Healthcare Transactions can help guide you through all the stages of your purchase. Contact us for a consultation today.
* Please note that the information in this article is not intended as legal advice, but rather as a general overview on the subject. If you are seeking legal advice, please consult with a lawyer.
