Ottawa employment lawyer on rights of employees after company is sold

Interview Summary

The Royal Bank of Canada recently bought the Canadian division of HSBC. The recent sale has given rise to questions concerning severance pay and employee rights in the event of this deal. What are employee rights if their company is sold to a new employer? Are employees owed the same wages and terms of their employment by the new owner?

Alex Lucifero, an Ottawa employment lawyer and Managing Partner at Samfiru Tumarkin LLP joined CTV News Ottawa with Matt Skube to answer these questions and more.

Interview Notes

• Obligation to keep on former employees: RBC is under no obligation to offer employment to HSBC employees however, those that have not been offered continued employment are owed severance pay.
• New ownership of the company leads to job changes: Employees that continue to be employed by the company that has bought out the previous owner are entitled to continued years of service and tenure. Employees must always remember that significant changes made to the terms of their employment by a new owner without their consent can lead to constructive dismissal. Major changes, like a salary reduction or relocation, do not have to be accepted.
• Severance obligations and responsibilities: Employees that do not work with the new owner of a company, in this case, RBC, are owed severance pay by their previous employer. Employees that are offered continued employment by the purchaser in the event of a future termination would be owed severance pay by the purchaser of their previous employer.