OpenGate Capital to acquire Cineplex’s Player One division for $155M: Employee rights

Canada’s largest movie theatre chain is selling its arcade game business.

In a news release on Nov. 22, OpenGate Capital announced that it has signed a definitive agreement to acquire Cineplex’s Player One Amusement Group (Player One) division for $155 million.

“Player One represents a dynamic investment and opportunity to enter the resilient and growing amusement solutions market,” Andrew Nikou, founder and managing partner of OpenGate Capital, said in the release.

“As corporate carve-out specialists, we are ready to bring the full force of our operations team to support the business and management team in this next stage of growth.”

The transaction, which is subject to customary closing conditions, is expected to be completed early next year.

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According to Player One’s website, it employs approximately 500 people and has 19 offices across North America.

As the business prepares to come under new management, here are a few things that non-unionized employees in Canada need to be aware of.

Who pays severance if OpenGate Capital doesn’t keep certain Player One employees?

If the sale of Player One to OpenGate Capital results in you losing your job, then Cineplex 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 OpenGate 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 Cineplex.

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
• Sale of business in Ontario: Rights to severance
• Rights to severance in Alberta when your employer sells the business
• Employer sold the business in B.C.? Know your 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 OpenGate Capital make major changes to the jobs of Player One employees?

In Canada, non-unionized employees at Player One don’t have to accept substantial changes to their job that OpenGate Capital might try to enforce.

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

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

New employment contracts for Player One staff

If you work for Player One in Canada, and you receive a new employment contract from OpenGate Capital, 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 non-unionized employees, 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 can’t legally force non-unionized workers in Canada 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

Do Player One staff still have the same workplace rights with a non-Canadian owner?

The short answer is yes. Companies outside of Canada can’t use employment contracts to get out of Canadian employment standards legislation.

While OpenGate Capital is headquartered in Los Angeles, California, the private equity firm still has to adhere to the same employment laws that Cineplex was required to follow for its Canadian staff.

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.