Shiny Health & Wellness to acquire Stash & Co. cannabis stores: Employee rights

Shiny Health & Wellness is expanding its presence in Ontario.

In a news release on Oct. 27, the provider of health and wellness solutions announced that it has signed a letter of intent to acquire Stash & Co.’s 10 adult-use cannabis retail stores.

“[Stash & Co.] is an award-winning brand with stores across Ontario, including Toronto, Ottawa, London, Kitchener, Oshawa, and Collingwood, as well as being one of the original cannabis stores in Canada with one of the most experienced staff in the cannabis industry,” the release reads.

“Based upon [our] review of the diligence materials to date, management meetings, and assuming satisfactory results of confirmatory due diligence, [we] would complete the transaction based on an aggregate purchase price equal to $1,000,000; $800,000 in cash and $200,000 in common shares.”

As part of the deal, Shiny Health & Wellness will be the sole owner of the Stash & Co. brand and trademark. The company added that the Stash & Co. dispensaries won’t be rebranded.

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While the acquisition is still subject to regulatory approvals, there are a few things that non-unionized employees at Stash & Co. need to be aware of if the business does come under new management.

Who pays severance if Shiny Health & Wellness doesn’t want to keep certain Stash & Co. staff?

While Shiny Health & Wellness said in its release that it intends to welcome all current customer-facing retail employees at Stash & Co., it’s possible that some employees could lose their jobs.

If the sale of Stash & Co.’s cannabis retail stores to Shiny Health & Wellness results in you losing your job, then Stash & Co. 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 Shiny Health & Wellness 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 Stash & Co.

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
• Severance for provincially regulated employees
• Rights to severance for cannabis sector staff
• Severance packages in mass layoffs

Can Shiny Health & Wellness make major changes to the jobs of Stash & Co. staff?

In Canada, non-unionized employees at Stash & Co. don’t have to accept substantial changes to their job that Shiny Health & Wellness 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 Stash & Co. staff

If you work for Stash & Co. in Canada, and you receive a new employment contract from Shiny Health & Wellness, 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 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

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.