If Suncor sells Petro-Canada, what rights do employees have?

Following the recent departure of CEO Mark Little, Suncor Energy is considering a multibillion-dollar sale of its Petro-Canada gas station network.

The oilsands giant announced that it will conduct a strategic review of its downstream assets, which includes more than 1,500 Petro-Canada locations.

If Suncor decides to sell one of the country’s largest retail fuel and convenience store chains, the acquisition could have a significant impact on Petro-Canada employees.

What if Petro-Canada’s new owner does not want to keep certain employees? Who pays severance?

When a business is sold, non-unionized employees are not automatically entitled to severance pay. However, if the sale results in a worker losing their job, they would be owed severance by the seller of the business. For example, if an employee lost their job as a result of the Petro-Canada sale, Suncor would have to provide compensation.

If a worker receives an employment offer from the new owner, and has a good reason for why they do not want to accept it (i.e. different hours or pay), they can receive full severance from the company that sold the business. Those without a good reason can also get severance, but they would only receive their minimum entitlements.

LEARN MORE
• Who pays severance when a business is sold in Ontario?
• Sale of business in Alberta: Employee rights
• How does severance work when a B.C. business is sold?

How is severance pay calculated?

Severance pay is based on your specific circumstances. These factors include your:

• Age
• Position at the company
• Length of service
• Ability to find new employment

Our Severance Pay Calculator can help you figure out how much compensation you are owed. An employment lawyer at Samfiru Tumarkin LLP can also review your situation to ensure you are receiving proper severance.

READ MORE:
• Severance Pay in a Recession
• Do I get severance if I quit?

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

What happens to an employee’s length of service if they continue working with Petro-Canada’s new owner?

If the new company that purchases the business hires an existing employee on, they also inherit their length of service.

• Example: if an individual worked for the previous company for 15 years, their new employer needs to acknowledge that length of service. If they are let go, they will be owed full severance based on the time they had with the previous company as well.

If you receive an employment offer from the new owner, review the contract carefully before accepting it. Employers might attempt to contract out of recognizing your length of service in the new agreement. Not only could this affect the amount of severance you receive if you are fired in the future, but it would also limit the entitlements of your total compensation package.

READ MORE:
• Can Suncor Energy force me to move from Toronto to Calgary?
• Employee rights when a company downsizes
• Employee rights when a company closes

Do not sign the dotted line until you speak with an employment lawyer

In addition to trying to get out of recognizing your length of service with the previous company, there are a number of things to look out for when reviewing an employment contract from the new owner of the business, including:

• A termination clause that could limit your severance entitlements
• A probation clause that could restrict your rights at the beginning of your employment
• Managerial rights that could alter terms and conditions of your employment
• Non-competition and non-solicitation clauses

Before signing a new employment agreement, contact the experienced employment law team at Samfiru Tumarkin LLP. Our lawyers can review the contract and advise you of your workplace rights.