Xerox acquiring Lexmark for $1.5B: Employee rights

What’s going on at Xerox?

Xerox is acquiring Chinese-owned printer and printing software maker Lexmark International (Lexmark) for $1.5 billion.

“Our acquisition of Lexmark will bring together two industry-leading companies with shared values, complementary strengths, and a deep commitment to advancing the print industry to create one stronger organization,” CEO Steve Bandrowczak said in a news release.

“By combining our capabilities, we will be better positioned to drive long-term profitable growth and serve our clients, furthering our reinvention.”

Formed out of IBM in 1991, Lexmark was sold to a group of Chinese investors in a $3.6-billion deal in 2016.

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• Cleveland-Cliffs acquires Stelco for nearly $4 billion
• National Bank buying Canadian Western Bank for $5 billion

The transaction, which is still subject to various conditions and approvals, is expected to close in the second half of 2025.

As Lexmark prepares to join forces with Xerox, here are a few things that non-unionized employees in Canada need to be aware of.

Who pays severance if Xerox 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 Xerox 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), contact an experienced employment lawyer at Samfiru Tumarkin LLP. We can help you figure out which company owes you severance pay.

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.

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

If your company’s offer falls short of what our Severance Pay Calculator says you’re owed, contact us. We can determine if you’ve been wrongfully dismissed.

Can Xerox make major changes to the jobs of employees at Lexmark?

In Canada, non-unionized employees at Lexmark don’t have to accept substantial changes to their job that Xerox 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 you’ve been constructively dismissed, don’t resign before contacting an experienced employment lawyer at Samfiru Tumarkin LLP.

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 Lexmark staff

If you work for Lexmark in Canada, and you receive a new employment contract from Xerox, 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.