Whitecap Resources, Veren to merge in $15B deal: Employee rights

What’s happening?

Whitecap Resources (Whitecap) and Veren, formerly Crescent Point Energy, are set to merge in a $15-billion, all-stock deal.

In a joint news release, the Calgary-based oil producers announced that the combined company will retain the Whitecap name.

“We are excited to bring together two exceptionally strong asset bases to create one world-class energy producer with one of the deepest inventory growth sets of both liquids-rich Montney and Duvernay opportunities, along with conventional light oil opportunities in some of the most profitable plays in the Western Canadian basin,” Grant Fagerheim, Whitecap’s president and CEO, said in the release.

“We look forward to bringing Whitecap and Veren together and providing increased value to both sets of shareholders well into the future.”

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The all-stock transaction is currently expected to close before the end of May.

As Whitecap and Veren prepare to join forces, here are a few things that non-unionized employees in Canada need to be aware of.

Who pays severance if the combined company doesn’t want to keep certain employees?

In certain provinces, including Alberta, an individual’s employment is deemed to be continuous and uninterrupted when the business they work for is sold, leased, transferred, or merged.

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

Both Whitecap and Veren staff will become employees of the combined company by operation of law — unless a specific agreement states otherwise.

If you’re fired or let go after the merger, contact an experienced employment lawyer at Samfiru Tumarkin LLP. We can help you secure the severance pay you deserve.

Can major changes be made to my job following the Whitecap-Veren merger?

It’s possible for the combined company to make changes to the jobs of Whitecap and Veren staffers — if done properly through a new employment contract.

WATCH: Employment lawyer Lior Samfiru breaks down everything you need to know about changes to your job on an episode of the Employment Law Show.

However, if major modifications are made to the terms of your employment without your consent, don’t do anything drastic (i.e. quit your job) before contacting our firm. There’s 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.

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 Whitecap and Veren staff

If you receive a new employment contract from the combined company after Whitecap and Veren merge, 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 combined company might attempt to reduce or eliminate your years of service prior to the merger. 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 combined company 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 Alberta, B.C., or Ontario, our lawyers can review your situation, enforce your rights, and ensure 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.