Calgary Co-op acquiring Care Pharmacies: Employee rights

To kick off 2024, Calgary Co-op is expanding its health and wellness offerings.

In a recent news release, the retail co-operative announced that one of its wholly-owned subsidiaries has entered into a “definitive agreement” to acquire Ontario-based Care Pharmacies. The financial details of the deal weren’t disclosed.

“We believe that Care Pharmacies will be a tremendous fit with our focus on growth in health [and] wellness, led by Pharmacy and supported by Natural Foods and Home Health Care,” Ken Keelor, CEO of Calgary Co-op, said in the release.

Keelor added that the acquisition “will follow enhancements we’ve made to our own pharmacies over the last few years.”

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Following the closure of the transaction, which is expected to take place in the first quarter, Calgary Co-op said Care Pharmacies will continue to operate as a separate entity with the same leadership team.

As Care Pharmacies prepares to come under new management, here are a few things that non-unionized employees in Canada need to be aware of.

Who pays severance if Calgary Co-op doesn’t keep certain workers at Care Pharmacies?

If Calgary Co-op’s acquisition of Care Pharmacies results in you losing your job, then Care Pharmacies 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 Calgary Co-op 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 Care Pharmacies.

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 B.C.? Know your 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 Ontario, Alberta, and B.C.

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
• Severance for provincially regulated employees
• Rights to severance for pharmaceutical industry staff
• Severance packages in mass layoffs

Can Calgary Co-op make major changes to the jobs of workers at Care Pharmacies?

In Canada, non-unionized employees at Care Pharmacies don’t have to accept substantial changes to their job that Calgary Co-op 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
• Can my employer make changes to my job in Ontario?
• Job changes in Alberta: What employees need to know
• Changes to your employment in B.C.: Your rights

New employment contracts for staff at Care Pharmacies

If you work for Care Pharmacies, and you receive a new employment contract from Calgary Co-op, 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 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

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 Ontario, Alberta, and B.C. 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.