Can Major Job Changes Be Made Post-Acquisition?

In a recent development concerning the acquisition of Helly Hansen by Kontoor, Canadian employees might find themselves navigating a complex landscape of employment rights. Non-unionized employees, in particular, have the legal protection against accepting substantial changes to their jobs, such as demotions, extended shifts, or reduced pay. These adjustments are deemed illegal without the employee’s consent.

Individuals facing significant changes to their employment terms without agreement may be entitled to treat this as constructive dismissal. According to Canadian labor law, if such a situation arises, employees have the right to resign and pursue full severance pay. If you suspect you are facing constructive dismissal, it is crucial to seek legal guidance before making any decisions.

New Employment Contract? Proceed with Caution

For those working at Helly Hansen, receiving a new employment contract post-acquisition raises important considerations. Many of these contracts may incorporate clauses that reduce or eliminate previous benefits and protections, including:

  • Elimination of past service: New contracts may attempt to disregard years of service, impacting severance entitlements and overall seniority.
  • Reduced severance pay: Employers may insert termination clauses that limit severance to a minimal amount, significantly affecting financial security if terminated without cause.
  • Alteration rights: Some agreements might include provisions that permit employers to change job aspects without consent.

It’s essential to remember that no employer can force non-unionized employees in Canada to sign a new contract immediately after it’s presented.

Do My Rights Change with a Non-Canadian Owner?

The answer is clear: No. Even with Kontoor, a U.S.-based entity, employment contracts cannot bypass Canadian labor standards. The rights of employees remain intact, regardless of the company’s origin.

Workplace Issues? Don’t Navigate Alone

For over 15 years, the team at Samfiru Tumarkin LLP has guided countless individuals in resolving workplace concerns across Ontario, Alberta, and British Columbia. We strive to support employees in understanding their rights and pursuing the compensation they deserve.


In moments of uncertainty, it’s comforting to reflect on the biblical principle found in Proverbs 3:5-6: “Trust in the Lord with all your heart and lean not on your own understanding; in all your ways submit to him, and he will make your paths straight.” This encourages us to seek guidance beyond ourselves.

As you navigate the complexities of employment changes and rights, take a moment to reflect on the inherent value of fairness, dignity, and protection that aligns with positive biblical principles. Remember, you are not alone in this journey; support is available, and seeking wise counsel can lead to clarity in turbulent times. Trust in the process, and know that hope prevails even in challenging situations.


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