Employment Law

Tourmaline Oil buying Bonavista Energy for $1.45B: Employee rights

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Canada’s largest natural gas producer is getting even bigger.

In a news release on Oct. 16, Tourmaline Oil announced that it has entered into a “definitive share purchase agreement” to acquire Calgary-based Bonavista Energy for $1.45 billion.

“The Bonavista assets are a natural extension of Tourmaline’s existing operations in the Deep Basin where the company is already the largest producer,” the release reads.

The energy company has continued to expand in recent years. In 2021, Tourmaline Oil purchased Black Swan Energy for approximately $1.1 billion.

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The deal, which subject to customary regulatory and stock exchange approvals, is expected to close in the second half of November.

As Bonavista Energy prepares to come under new management, here are a few things that non-unionized employees need to be aware of.

Who pays severance if Tourmaline Oil doesn’t want to keep certain Bonavista Energy employees?

If the sale of Bonavista Energy to Tourmaline Oil results in you losing your job, then Bonavista Energy 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 Tourmaline Oil 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 Bonavista Energy.

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
Rights to severance in Alberta when your employer sells the business
Employer sold the business in B.C.? Know your rights to severance
Sale of business in Ontario: 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 Alberta, B.C., and Ontario.

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
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Can Tourmaline Oil make major changes to the jobs of Bonavista Energy employees?

In Canada, non-unionized employees at Bonavista Energy don’t have to accept substantial changes to their job that Tourmaline Oil 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
Job changes in Alberta: What employees need to know
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Can my employer make changes to my job in Ontario?

New employment contracts for Bonavista Energy staff

If you work for Bonavista Energy in Canada, and you receive a new employment contract from Tourmaline Oil, 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.

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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 Alberta, B.C., and Ontario 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.

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