WonderFi merging with Coinsquare and CoinSmart: Employee rights

A major consolidation is taking place in Canada’s cryptocurrency sector.

In a joint news release on April 3, WonderFi Technologies (WonderFi), Coinsquare, and CoinSmart Financial (CoinSmart) announced a three-way merger, which will create “one of the largest regulated crypto asset trading platforms in the world.”

“We are extremely proud of all the effort and dedication that’s gone into getting us to this point,” Coinsquare CEO Martin Piszel said in the release.

“This combination will create a safe, secure, scalable, and regulated trading platform that can compete with the unregulated global exchanges still operating in Canada.

Once the merger is complete, Coinsquare shareholders will own approximately 43 per cent of the combined company.

Ownership for WonderFi and CoinSmart shareholders is expected to be 38 per cent and 19 per cent, respectively.

“Our combined executive team will help transform not only how the three businesses operate, but how the industry itself evolves around its incredibly valuable users,” CoinSmart CEO Justin Hartzman said.

“Modern wealth generation will be our mantra; profitability will be our corporate calling.”

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Major tech layoffs continue

The three-way merger between WonderFi, Coinsquare, and CoinSmart comes amid a flurry of tech sector layoffs in 2023.

Several big names, including Amazon, Microsoft, Ritual, Spotify, Lyft, Dropbox, Meta, and Alphabet, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

SEE ALSO
• Elon Musk, Twitter facing $500M class action over severance payments
• Firm launches $130M class action against Shopify for breach of contract
• Where are layoffs happening in Canada?

Can my boss make major changes to my job after the merger?

In most cases, employers in Canada can’t make significant adjustments to a non-unionized worker’s job without their consent.

Exceptions: There are some situations where your boss might be able to alter the terms of your employment without breaching your rights:

• You signed an employment contract that gives the company permission to make changes to your job
• Your employer gave you reasonable notice of the modification

WATCH: Employment lawyer Lior Samfiru breaks down everything you need to know about changes to your job on an episode of the Employment Law Show.

If substantial changes are made to the terms of your employment without your consent, it’s very likely that you can treat it as a constructive dismissal.

In this situation, the law allows you to quit your job and seek full severance pay.

However, you shouldn’t resign until an experienced employment lawyer at Samfiru Tumarkin LLP confirms that you have been constructively dismissed.

ADDITIONAL RESOURCES
• Changes to your employment in Ontario: Your rights
• Job changes in B.C.: Employee rights
• Can your employer change your job in Alberta?

How is severance pay calculated?

In Canada, severance for non-unionized employees 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
• Position at the company
• Length of service
• 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 understand their severance entitlements.

If your company doesn’t provide you with the correct amount, you have been wrongfully dismissed and should contact Samfiru Tumarkin LLP immediately.

We regularly resolve wrongful dismissal claims and can help you secure proper severance.

ADDITIONAL RESOURCES
• Should I negotiate my own severance package in Ontario?
• Negotiating severance in Alberta: Employee rights
• Severance negotiations in B.C.: What employees need to know

I’m being pressured to sign a new employment contract after the merger, what should I do?

Following a merger, it’s not uncommon for non-unionized employees in Canada to be asked to sign a new employment contract.

If you receive a new agreement from the combined company, don’t accept anything before speaking with an experienced employment lawyer at Samfiru Tumarkin LLP.

Employment contracts often away key protections that would otherwise be available to you.

The combined company might attempt to limit your severance package to a few weeks’ pay or add a clause that gives them the ability to make significant changes to your job.

It’s important to understand that your employer can’t legally force you to accept a new agreement immediately or a few days after it was provided to you.

Our firm can review the contract and make sure that your workplace rights are properly protected.

LEARN MORE
• Starting a new job? Here’s how an employment contract could limit your rights
• ’60 days or more’: Is it an enforceable termination clause?
• Employment Law Show: 5 things to know about employment contracts

Validating a new agreement

In order to validate a new employment contract, employers in Canada must provide non-unionized workers with an additional “benefit”.

Potential benefits could include:

• A signing bonus
• Extra vacation days
• More flexibility working remotely

If the combined company didn’t include an additional benefit in the new agreement, or you aren’t sure that one has been provided, don’t sign anything before contacting Samfiru Tumarkin LLP.

My boss is pressuring me to quit following the merger, what should I do?

Employers in Canada can’t pressure or force non-unionized workers to resign — regardless of a merger.

If the combined company is encouraging you to quit, document their attempts. Keep any letters, emails, or text messages that show how management is pressuring you to step down.

Once you have gathered all of the relevant documents, don’t quit your job before contacting our firm. You might have grounds for a constructive dismissal claim.

If you were forced to resign for any reason, reach out to an experienced employment lawyer at Samfiru Tumarkin LLP immediately.

In addition to severance pay, you could be owed compensation for any damages associated with the end of your employment.

LEARN MORE
• Employment Law Show: Facts about forced resignations
• Employment Law Show: How to handle a bad boss
• Employment Law Show: What your employer legally can’t do

Can my employer fire me after the merger?

In Canada, employers can fire non-unionized workers before, during, and after a merger. This is known as a termination without cause.

You can be let go for any reason, as long as:

• You are provided full severance pay
• The reasons for your dismissal aren’t discriminatory

However, it’s very unlikely that your boss could fire you for cause in this situation — meaning no severance package or access to Employment Insurance (EI) benefits.

Considered the harshest punishment in a company’s arsenal, it’s reserved for the worst kinds of workplace offences, such as serious insubordination, theft, or assault.

In order to justify terminating you for cause, your employer would have to prove progressive disciplinary measures were applied and that a lesser penalty wouldn’t be acceptable, which is very hard to do.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance for federally regulated employees
• Employment Law Show: Facts about the termination process

Lost your job? Speak with an employment lawyer

If you are fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have helped tens of thousands of non-unionized individuals resolve their workplace issues.

We can review your situation, assess your legal options, and ensure that you receive the compensation you deserve.