Nvidia Acquires Toronto AI Startup CentML: Employee Rights

What Happened?

Nvidia has acquired CentML, a Toronto-based machine learning (ML) and artificial intelligence (AI) startup.

While the financial details of the deal haven’t been disclosed, CentML’s co-founders will reportedly move to leadership roles at the American computer chip giant.

CentML customers have been informed that the startup’s operations will officially end on July 17.

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Severance Rights for CentML Employees

In Canada, the “seller” of the business is responsible for providing proper compensation to employees who lose their job.

📺 WATCH: Rights Non-Unionized Workers Have When a Business is Sold

If you receive a new employment contract from Nvidia 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 can help you secure the severance pay you’re owed.

Even without a good reason you can still get severance. However, 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 BC? Know Your Rights to Severance

Are Major Job Changes Post-Acquisition Legal?

In Canada, non-unionized employees at CentML don’t have to accept substantial adjustments to their job that Nvidia might try to enforce.

Major modifications, such as a demotion, longer shifts, or reduced pay, are illegal.

If unwanted changes are made to the terms of your employment following the acquisition, 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
• Can My Employer Make Changes to My Job in Ontario?
• Job Changes in Alberta: What Employees Need to Know
• Changes to Your Employment in BC: Your Rights

New Employment Contract?

If you work for CentML, and you receive a new employment contract from Nvidia, 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? How Employment Contracts Could Limit Your Rights
• Employment Law Show: 5 Things About Employment Contracts
• Employment Law Show: Things to Avoid Before Seeking Legal Counsel

Workplace Issue? Contact Us

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 Ontario, Alberta, or BC, 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.