Aviva Canada to acquire Optiom for $170M: Employee rights
Aviva is expanding its Canadian footprint.
In recent news release, the insurance company announced plans to acquire Optiom O2 Holdings Inc. (Optiom) from Novacap and other minority shareholders for approximately $170 million.
Optiom is a provider of vehicle replacement insurance in Canada and offers flexible payment options to customers.
“The acquisition strengthens our offering and distribution capabilities in a highly attractive segment of the Canadian insurance market,” Tracy Garrad, CEO of Aviva Canada, said in the release.
“We know Optiom well through our existing relationship and are excited about what we can do together to better serve our brokers and customers.”
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If the deal gets the thumbs up from regulators, it’s expected to close in the first quarter of 2024.
As Optiom prepares to join the Aviva family, here are a few things that non-unionized employees in Canada need to be aware of.
Who pays severance if Aviva doesn’t keep certain Optiom employees?
If the sale of Optiom to Aviva results in you losing your job, then Optiom must provide you with full severance pay.
In Canada, the seller of the business is responsible for providing proper compensation to staff who lose their job.
WATCH: Employment lawyer Lior Samfiru explains the rights workers have when their employer sells the business on an episode of the Employment Law Show.
If Aviva 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), you might be able to get full severance pay from Optiom.
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
• 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
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 Alberta, B.C., and Ontario.
The amount of compensation you are entitled to is calculated using several factors, including:
- Age
- Length of service
- Position at the company
- Ability to find new work
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.
If your company doesn’t provide you with the correct amount, you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP immediately.
We regularly resolve wrongful dismissal claims and can help you secure proper severance.
LEARN MORE
• Rights to severance for provincially regulated employees
• Severance packages in mass layoffs
• Severance pay in a recession
Can Aviva make major changes to the jobs of Optiom employees?
In Canada, non-unionized employees at Optiom don’t have to accept substantial changes to their job that Aviva 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 that you have been constructively dismissed, don’t resign before contacting our firm.
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 Optiom staff
If you work for Optiom in Canada, and you receive a new employment contract from Aviva, 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 can’t legally force non-unionized workers in Canada 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
Received a job offer? Speak with an employment lawyer
Before accepting a new employment contract, have the experienced employment law team at Samfiru Tumarkin LLP review the agreement to make sure your workplace rights are protected.
Our lawyers in Alberta, B.C., and Ontario have successfully represented tens of thousands of non-unionized individuals.
We can help you better understand the terms of the contract and advise you on how best to navigate the situation.