Gildan Activewear exploring potential sale: Employee rights

Gildan Activewear, one of Canada’s largest consumer product companies, confirmed that it’s exploring a sale.

In a recent news release, the Montreal-based apparel maker said it formed a special committee after it received a “non-binding expression of interest” from a potential buyer.

“[The special committee determined] it was consistent with its fiduciary duties and in the best interests of Gildan to contact other potential bidders with a view to maximizing the value of any potential transaction,” the release reads.

“The [special committee], with the assistance of its financial advisors, conducted targeted outreach to a small number of reputable potential counterparties. Several of these counterparties expressed an interest in considering a potential friendly transaction with Gildan.”

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The announcement comes as the company remains embroiled in a battle between its top stockholders and its board of directors.

If Gildan Activewear does come under new management, here are a few things that non-unionized employees in Ontario, Alberta, and B.C. need to know.

Who pays severance if the new owner doesn’t want to keep certain Gildan employees?

If you lose your job as a result of Gildan Activewear selling the business, the apparel maker must provide you with full severance pay.

In Canada, the person or group who sold the company is responsible for providing proper compensation to affected staff.

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 you receive an employment offer from the new owner, and have a good reason for why you don’t want to accept it (i.e. different hours or pay), you can still get full severance pay from Gildan Activewear.

Even without a good reason you can still get severance, but it’s very likely that you will only receive your minimum entitlements.

ADDITIONAL RESOURCES
• 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:

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 pay for provincially regulated employees
• Severance packages in mass layoffs
• Rights to severance during a recession

Can the new owner of Gildan make major changes to my job?

In Canada, non-unionized employees at Gildan Activewear don’t have to accept substantial changes to their job that the new owner of the company 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 Gildan Activewear

If you are a non-unionized employee at Gildan Activewear, and the new owner of the business provides you with an employment contract, don’t sign anything before seeking legal counsel.

In many cases, these agreements take away key protections that would otherwise be available to non-unionized workers, 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.