Kaynes Canada Limited acquiring August Electronics: Employee rights

What’s going on?

August Electronics, a Calgary-based provider of end-to-end electronics manufacturing services, is joining the Kaynes Technology group.

The company announced in a news release that it has entered into a “definitive agreement” to be acquired by Kaynes Canada Limited. Financial details of the deal haven’t been disclosed.

“There is a tremendous alignment between August and Kaynes in terms of culture, capabilities, and customer focus,” Tanya Korenda, CEO of August Electronics, said in the release.

“We are extremely excited about this opportunity to join forces and leverage the global scale, engineering strength, and complementary capabilities that Kaynes brings.”

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Following the completion of the acquisition, expected to close by the end of May, the entire August Electronics management team will remain in place to ensure “business continuity and a strong foundation for future growth.”

The company prepares for its next chapter, here are a few things that non-unionized employees in Canada need to be aware of.

Who pays severance if Kaynes doesn’t keep certain August Electronics staff?

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 you receive a new employment offer 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
• 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

Can Kaynes make major changes to the jobs of staff at August Electronics?

In Canada, non-unionized employees at August Electronics don’t have to accept substantial changes to their job that Kaynes 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
• 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 August Electronics staff

If you work for August Electronics, and you receive a new employment contract 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
• 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

Workplace issue? Talk to our team

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 Alberta, B.C., or Ontario, our lawyers can review your situation, enforce your rights, and ensure you receive the compensation you deserve.

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.