IBM announces innovation centre, jobs in Calgary

IBM has announced that it will build a new Client Innovation Centre for Western Canada in Calgary’s downtown core. This move is expected to create 250 high tech jobs for Calgarians.

The tech hub will provide consulting services, according to the technology giant. It will also manage technology including 5G, artificial intelligence, hybrid cloud and blockchain.

Part of the centre’s creation will reportedly be funded by the city-owned Opportunity Calgary Investment Fund, to the tune of $5 million. This announcement adds to Calgary’s growth in the tech sector over recent years as it seeks to move away from an economy based largely on oil and gas.

Employment contracts for IBM and tech employees

Many tech companies, like IBM, now require new employees to sign employment contracts before their first day. Here are some of the key clauses to look out for:

• Termination Clause: When fired, an employee may be entitled to up to 24 months of severance pay, depending on various factors. A termination clause tries to limit Alberta severance entitlements to as little as one week. Many of these clauses are unenforceable, but it is better to negotiate a clause you are happy with at the start of your employment than risk finding that you can be terminated for next to nothing down the line.
• Intellectual Property: Many contracts require that any IP rights developed during employment be vested in the employer, not the employee who created the IP. Further, if a new employee is bringing their own IP to their new job, they may have to grant a perpetual license in the IP to the new employer, or worse, transfer the IP.
• Confidentiality: An employee may be given access to confidential information in the course of their duties, including proprietary source code, strategic information, client lists, or confidential business information. The employer will require that employees not copy or otherwise make use of the information outside of their work duties. There may be stringent penalties for a breach.
• Non-competition: Unlike in Ontario (and California in the U.S.) there is nothing preventing an employer from requiring an employee working in Alberta not to compete with it during employment and for a certain period thereafter. This might essentially deprive the employee of the means to make a living following a layoff. Courts view non-competition clauses as presumptively unenforceable, but you should check whether yours is valid before you sign.
• Non-solicitation: A non-competition clause forbids competition at large. Non-solicitation means that you will not try to obtain the business of certain former clients and will not try to hire away the company’s staff for a certain period of time. If you are bringing staff or clients to the employer with you, this should be of concern to you. Non-solicitation clauses are more likely to be enforced than non-competition clauses.
• Injunctive relief: The company may seek your consent to an injunction in the event you breach any of the above clauses. An injunction is a court order to do or not do something, for instance an order to comply with your non-competition clause. If you breach an injunction, you can be found in contempt of court, which can result in a hefty fine and potentially jail time. Many of these clauses also would require you to pay the legal fees incurred by the company in obtaining the injunction, which could easily amount to tens of thousands of dollars.
• Tangential benefits: It is better that tangential benefits that are discussed be incorporated directly into the contract. For instance, if there is an agreement that you will be allowed to work from home 75 per cent of the time, have that written in. It will then be easier to argue that it was a fundamental reason why you accepted the job if ever the employer changes their policy. Things like training allowances, the personal use of company vehicles, and such should all be written into the contract.
• Stock grants and restricted share units: Many tech workers have a portion of their compensation paid to them as stock grants or RSU’s that will typically vest according to a five-year schedule. These may seem to be very lucrative, but many grants specify that any unvested shares will be forfeited upon termination or resignation. As such, you may want to ask yourself and the company what the future holds before accepting that too much of your compensation be deferred to many years into the future.

Most non-unionized workers will look at what benefits flow to them in an employment contract and may not fully understand the rights the company reserves for itself. For this reason, it is important to have your employment contract reviewed by an experienced employment lawyer at Samfiru Tumarkin LLP before you sign.

It is also important to know that for an agreement to be valid, it must be signed before you start a new job, rather than on your first or following days.

Severance Pay for IBM employees

Employees working for IBM in Canada are owed severance when they lose their job. This is true in Alberta, British Columbia or Ontario. A severance package contains compensation that a non-unionized worker must receive from their employer when they are fired without cause.

Whether you have been hired or fired by IBM, do not accept any employment contract, severance package or exit agreement the company may provide you with before having it reviewed by an experienced Alberta employment lawyer at Samfiru Tumarkin LLP. Once you sign back these documents, you eliminate your ability to negotiate a fair deal and proper employment rights, especially when it comes to severance pay.