Blackstone acquiring Jersey Mike’s Subs for $8B: Employee rights

What’s going on at Jersey Mike’s Subs?

Just months after making its Canadian debut in Markham, Ontario, Jersey Mike’s Subs is being acquired by private equity firm Blackstone.

According to multiple news outlets, the deal is valued at approximately $8 billion, including debt.

“Jersey Mike’s has grown for more than half a century by maintaining an unrelenting focus on quality (and delicious sandwiches)—consistently building on its loyal customer base as it has scaled nationwide,” Peter Wallace, a senior managing director at Blackstone, said in a news release.

“Blackstone has deep experience helping accelerate the expansion of high-growth franchise businesses and this area is one of our highest-conviction investment themes.”

SEE ALSO
• Roark Capital buying Subway for $9.6 billion
• Cleveland-Cliffs acquires Stelco for nearly $4 billion
• National Bank buying Canadian Western Bank for $5 billion

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

As Jersey Mike’s prepares to join the Blackstone family, here are a few things that non-unionized employees in Canada need to be aware of.

Who pays severance if Blackstone doesn’t keep certain  Canadian employees?

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

If Blackstone 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 Jersey Mike’s.

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

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 British Columbia.

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

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 seek legal counsel immediately.

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

ADDITIONAL RESOURCES
• Severance for provincially regulated employees
• Rights to severance during mass layoffs
• Severance pay in a recession

Can Blackstone make major changes to the jobs of employees at Jersey Mike’s?

In Canada, non-unionized employees at Jersey Mike’s don’t have to accept substantial changes to their job that Blackstone 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 staff at Jersey Mike’s

If you work for Jersey Mike’s in Canada, and you receive a new employment contract from Blackstone, 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 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

Workplace issue? Talk to our team

Since 2007, the experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals resolve their workplace issues.

Whether you’re in Ontario, Alberta, and B.C., our lawyers can review your situation, enforce your rights, and ensure that you receive the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.