BMO Acquiring Burgundy Asset Management for $625M: Employee Rights

What’s Happening at BMO?

Bank of Montreal (BMO) has entered into an agreement to acquire Burgundy Asset Management (Burgundy) for approximately $625 million in shares.

“It has always been our intention to build Burgundy for the long run, so we can serve our clients and their families across generations,” Tony Arrell, Burgundy’s chairman and co-founder, said in a joint news release.

“We are happy to be joining BMO, a North American leader, and believe this is a great opportunity to continue to serve our clients well into the future.”

Following the completion of the acquisition, which is expected to take place at the end of the year, Burgundy will be added to the bank’s wealth management unit.

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Severance Rights for Burgundy Employees

Following BMO’s acquisition of Burgundy, the bank might decide to let certain staff members go.

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

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

If you receive a new employment contract from BMO 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 can help you secure the severance pay you’re owed.

Even without a good reason you can still get severance. However, 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

Are Major Job Changes Post-Acquisition Legal?

In Canada, non-unionized employees at Burgundy don’t have to accept substantial adjustments to their job that BMO might try to enforce.

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

If unwanted changes are made to the terms of your employment following the acquisition, 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 Burgundy, and you receive a new employment contract from BMO 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.

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• Starting a New Job? How Employment Contracts Could Limit Your Rights
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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.