Suncor buying TotalEnergies’ Canadian operations for $1.47B: Employee rights

Just months after cutting hundreds of jobs, Suncor Energy has announced a major acquisition.

In a news release on Oct. 4, the energy giant said it has agreed to purchase TotalEnergies’ Canadian operations for approximately $1.47 billion.

As part of the deal, Suncor will buy the 31.23 per cent interest held by TotalEnergies EP Canada in the Fort Hills oil sands mining project — giving the company total control.

“With 100 per cent ownership of Fort Hills, we will pursue opportunities to create additional value through regional synergies and basin-wide management of our unparalleled, integrated oil sands asset base,” Suncor CEO Rich Kruger said in the release.

“This transaction is aligned with our strategy to wholly own and operate long-life strategic assets.”

The company also noted that the acquisition will add 61,000 barrels per day of bitumen production capacity as well as “675 million barrels of proven and probable reserves” to its existing oil sands portfolio.

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According to news outlets, including Reuters, the deal is expected to close by the end of the year.

With TotalEnergies’ Canadian operations set to come under new management, here are a few things that non-unionized employees need to be aware of.

Who pays severance if Suncor doesn’t want to keep certain TotalEnergies staff?

If the sale of TotalEnergies’ Canadian operations to Suncor results in you losing your job, then TotalEnergies must provide you with full severance pay.

In Canada, the seller of the business is responsible for providing proper compensation to staff who lose their job.

WATCH: Employment lawyer Lior Samfiru explains the rights workers have when their employer sells the business on an episode of the Employment Law Show.

If Suncor provides you with an employment offer, and you have a good reason for why you don’t want to accept it (i.e. different hours or pay), you might be able to get full severance pay from TotalEnergies.

Even without a good reason you can still get severance, but it’s very likely that you will only receive your minimum entitlements.

LEARN MORE
• Rights to severance in Alberta when your employer sells the business
• Employer sold the business in B.C.? Know your rights to severance
• Sale of business in Ontario: Rights to severance

How is severance pay calculated?

Severance for non-unionized employees in Canada can be as much as 24 months’ pay.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

The amount of compensation you are entitled to is calculated using several factors, including:

• Age
• Length of service
• Position at the company
• Ability to find new work

To figure out how much you could be owed, use our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their severance entitlements.

If your company doesn’t provide you with the correct amount, you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP immediately.

We regularly resolve wrongful dismissal claims and can help you secure proper severance.

LEARN MORE
• Rights to severance for provincially regulated employees
• Severance packages in mass layoffs
• Severance pay in a recession

Can Suncor make major changes to the jobs of staff at TotalEnergies?

Non-unionized employees at TotalEnergies don’t have to accept substantial changes to their job that Suncor might try to enforce.

Major modifications, such as a demotion, longer shifts, or reduced pay, are illegal in Canada.

When significant adjustments are made to the terms of your employment without your consent, there is a very good chance that you can treat it as a constructive dismissal.

In this situation, the law allows you to quit your job and pursue full severance pay.

If you believe that you have been constructively dismissed, don’t resign before contacting our firm.

ADDITIONAL RESOURCES
• Job changes in Alberta: What employees need to know
• Changes to your employment in B.C.: Your rights
• Can my employer make changes to my job in Ontario?

New employment contracts for TotalEnergies staff

If you are a non-unionized employee at TotalEnergies, and you receive a new employment contract from Suncor, take the time to carefully review it before signing it.

In many cases, these agreements take away key protections that would otherwise be available to you, including:

• Eliminating past service: The new owner might attempt to reduce or eliminate your years of service with your previous employer. Don’t sacrifice your seniority. Length of service is a key factor when determining how much severance pay you are entitled to.
• Reducing severance pay: Some employers try to use a termination clause to reduce your severance entitlements to the bare minimum. Instead of months of pay, you might only receive a few weeks’ pay if you are fired without cause or let go.
• Ability to make changes: The new owner might attempt to add a clause that gives them the right to change aspects of your job (i.e. hours or pay) without your permission or lay you off without penalty.

Employers in Canada can’t legally force non-unionized workers to sign a new employment contract immediately or a few days after receiving it.

SEE ALSO
• Starting a new job? Here’s how an employment contract could limit your rights
• Employment Law Show: 5 things to know about employment contracts
• Employment Law Show: Things to never do before seeking legal counsel

Received a job offer? Speak with an employment lawyer

Before accepting a new employment contract, have the experienced employment law team at Samfiru Tumarkin LLP review the agreement to make sure your workplace rights are protected.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

We can help you better understand the terms of the contract and advise you on how best to navigate the situation.