Kuehne+Nagel acquiring Canadian customs broker Farrow: Employee rights

Kuehne+Nagel is expanding its customs brokerage offering in North America.

In a recent news release, the logistics provider announced that it’s acquiring Farrow, a long-standing customs broker based in Windsor, Ontario.

“We are excited to take our successful long-time, family-owned business to the next level and welcome the opportunity to be part of one of the world’s leading logistic companies,” Rick Farrow, Chairman of Farrow, said in the release.

“This allows us to combine our extensive expertise in customs brokerage with the capabilities and global reach of Kuehne+Nagel, allowing us to provide extraordinary supply chain solutions for our customers, as well as, creating new opportunities for career growth for our colleagues.”

Following the completion of the transaction, which is expected to happen during the first quarter of 2024, the company will become a fully-owned subsidiary of Kuehne+Nagel.

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According to the release, Farrow employs approximately 830 people and has 41 locations across Canada and the U.S.

As the company prepares to join the Kuehne+Nagel family, there are a few things that non-unionized workers in Canada need to be aware of.

Who pays severance if Kuehne+Nagel doesn’t keep certain Farrow employees?

If Kuehne+Nagel’s acquisition of Farrow results in you losing your job, then Farrow 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 Kuehne+Nagel 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 Farrow.

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

Can Kuehne+Nagel make major changes to the jobs of Farrow employees?

In Canada, non-unionized employees at Farrow don’t have to accept substantial changes to their job that Kuehne+Nagel 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 Farrow staff

If you work for Farrow in Canada, and you receive a new employment contract from Kuehne+Nagel, 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.

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Do Farrow staff still have the same workplace rights with a non-Canadian owner?

The short answer is yes. Companies outside of Canada can’t use employment contracts to get out of Canadian employment standards legislation.

While Kuehne+Nagel is headquartered in Schindellegi, Switzerland, the logistics provider still has to adhere to the same employment laws that Farrow was required to follow for its Canadian staff.

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.