Employment Law

AMD Acquiring Toronto’s Untether AI: Employee Rights

A close-up photo of a green and white computer ram stick. (Photo: S. Tsuchiya / Unsplash)

What’s Happening?

Untether AI, a Toronto-based artificial intelligence (AI) chipmaker, announced in a blog post that it’s being acquired by Advanced Micro Devices, Inc. (AMD).

“While today marks the end of Untether AI’s journey, we are proud of the pioneering research that underpinned our work in advancing state-of-the-art AI chip technology,” the company’s blog post reads.

“We are grateful for the dedication of our team and the support of our customers, partners, and investors. We look forward to the contributions our world-class team will make with AMD.”

Many details of the acquisition, including the financial terms of the deal, haven’t been disclosed at this time.

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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 AMD 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

⛔ UNIONIZED?
You must consult your union representative regarding termination, severance pay, and other workplace issues. By law, employment lawyers can’t represent unionized employees with these issues. They’re governed by your collective bargaining agreement.

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Can Major Job Changes be Made Post-Acquisition?

In Canada, non-unionized employees at Untether AI don’t have to accept substantial changes to their job that AMD 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 Untether AI in Canada, and you receive a new employment contract from AMD 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
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❓ Different Rights With a Non-Canadian Owner?
No.
Companies outside of Canada can’t use employment contracts to get out of Canadian employment standards legislation. While AMD is headquartered in the US, the tech giant still has to adhere to the same employment laws that Untether AI was required to follow.

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.

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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.

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