Canadian Tire Sells Helly Hansen for $1.3 Billion: Employee Rights

What’s Happening at Canadian Tire?

Canadian Tire has sold its sportswear brand, Helly Hansen, to American clothing company Kontoor Brands (Kontoor) for approximately $1.3 billion.

“As we shift from brand owner to brand customer, we expect Helly Hansen’s world-class products to remain on our shelves and on the shopping lists of our customers,” Greg Hicks, CEO of Canadian Tire, said back in February.

“We are excited to see where Kontoor takes the brand next.”

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The update comes just days after an Ontario judge gave the retailer approval to acquire the intellectual property of Hudson’s Bay for $30 million.

As Helly Hansen comes under US ownership, here are a few things that non-unionized employees in Canada need to be aware of.

Who’s on the Hook for Severance Post-Acquisition?

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

📺 WATCH: Rights Non-Unionized Workers Have When a Business is Sold

If you receive a new employment contract from Kontoor following the acquisition, 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’ll help you secure the severance pay you’re entitled to.

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 BC? Know Your Rights to Severance

Can Major Job Changes be Made Post-Acquisition?

In Canada, non-unionized employees at Helly Hansen don’t have to accept substantial changes to their job that Kontoor 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’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.

If you believe you’ve 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 BC: Your Rights

New Employment Contract?

If you work for Helly Hansen in Canada, and you receive a new employment contract from Kontoor following the acquisition, 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 contract 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 agreement 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? How Employment Contracts Could Limit Your Rights
• Employment Law Show: 5 Things About Employment Contracts
• Employment Law Show: Things to Avoid Before Seeking Legal Counsel

Do My Rights Change With a Non-Canadian Owner?

No. Companies outside of Canada can’t use employment contracts to get out of Canadian employment standards legislation.

While Kontoor is headquartered in the US, the clothing company still has to adhere to the same employment laws that Canadian Tire was required to follow for Helly Hansen staff.

Workplace Issue? Contact Us

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, or BC, 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.