Honda supplier building $1.6B EV parts plant in Ontario: Employee rights

Just a few weeks after Honda announced a $15-billion electric vehicle (EV) investment in Ontario, one of the automaker’s suppliers provided an update.

Asahi Kasei Corporation told news outlets, including CBC, that it will build an EV battery separator plant in Port Colborne — a small city in the province’s Niagara Region.

Mayor Bill Steele praised the Japanese company’s investment — claiming it’s the biggest that the city has received in the past century.

“You’re going to see the resurgence of all kinds of new industry that will tie in, not just with EV battery trade,” Steele said.

“It’s going to give a whole boost to [Port Colborne].”

Asahi Kasei is hoping to have the facility, which is expected to cost approximately $1.6 billion, up and running by 2027.

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Another company, POSCO Future M Co., Ltd., is also set to build a processing plant that will support Honda’s EV supply chain in Ontario. The facility’s location hasn’t been disclosed at this time.

If you are thinking about working for Honda or its suppliers in the province, here are a few things that non-unionized employees need to keep in mind.

Carefully review your new employment contract

Before starting a new job in Ontario, it’s very likely that you will be asked to sign an employment contract.

In many cases, these agreements take away key protections that would otherwise be available to non-unionized workers in the province.

Your employer 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.

WATCH: Employment lawyer Lior Samfiru explains the five things workers need to know about employment contracts on an episode of the Employment Law Show.

Once you receive an employment contract, take the time to carefully review it. Your boss can’t legally force you to accept it immediately or a few days after receiving it.

If you are unsure about anything in the agreement, contact an experienced employment lawyer at Samfiru Tumarkin LLP.

We can review the contract and ensure that your workplace rights are properly protected.

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You might have to complete a probationary period

In Ontario, employment contracts often contain a “probation clause” that requires non-unionized employees to complete a probationary period when they start working for a new company.

If your employer doesn’t indicate the existence of a probationary period in your agreement, it won’t be considered “valid” or “in effect.”

While employees are usually put on probation for three months, it’s not uncommon for probationary periods to remain in effect for six months or more.

Fired during your probationary period?

If you are fired or let go before the probationary period ends, the company may still owe you a severance package.

Your entitlements depend on what you agreed to in the employment contract.

However, if you are terminated after a legitimate three-month probationary period, your employer is required to provide you with working notice or pay in lieu of notice (i.e. severance pay).

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Severance pay considerations

Before changing jobs, you need to consider future severance possibilities.

Compensation for non-unionized employees in Ontario can be as much as 24 month’s pay. It’s calculated using several factors, including:

If you quit your current job, you may not be owed severance

In most cases, non-unionized workers in Ontario don’t get a severance package if they resign from their position voluntarily to take up employment elsewhere.

Severance is designed to provide employees with financial support while they look for new work after being fired without cause or let go.

However, if you are forced to leave because of unwanted changes to your job, it’s very likely that you could treat it as a constructive dismissal.

In this situation, the law allows you to resign and pursue full severance pay.

If you believe that you have been constructively dismissed, don’t quit your job until you speak with an experienced employment lawyer at Samfiru Tumarkin LLP.

ADDITIONAL RESOURCES
• Should I negotiate my own severance package in Ontario?
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Your length of service affects your severance entitlements

If you are fired without cause or let go, a key factor in determining how much severance pay you are owed is your length of service.

• Example: If you worked for a company in Toronto for 15 years and decide to take a new job in Sarnia that you sought out on your own, you forfeit the severance entitlements you built up with your current employer. As a result, if you are fired without cause or let go shortly after joining the new business, you could receive very little compensation.

However, there are situations where short-service employees are owed significantly more severance pay than they realize.

If your employer fires you without cause, and you have only been with the company for three years or less, don’t accept your severance offer before contacting our firm.

As long as you didn’t sign the offer and send it back to your boss, you have two years from the date of your dismissal to pursue full severance pay.

We can review the offer and help you secure the compensation that you are legally entitled to.

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• I already accepted a severance package, what should I do?
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Recruited by another company?

In some cases, non-unionized workers in Ontario leave their current job after being actively recruited by another company.

If your new employer took documented steps to entice you to take up employment with them, this is known as inducement.

In the event that the company decides to terminate you shortly after pulling you away from your previous employer, the inducement should be taken into consideration when determining your severance entitlements.

• Example: Asahi Kasei entices you to leave your current job to come work at its EV facility in Port Colborne. If you are terminated shortly after making the switch, the company may be on the hook for enhanced severance pay because of the pressure it placed on you to leave your previous employer.

If this situation applies to you, don’t sign your severance offer until it’s been reviewed by a member of our team.

We can confirm that the inducement has been properly factored into your severance package and help you secure the compensation you deserve if it isn’t.

ADDITIONAL RESOURCES
• Recruited by another company in Alberta: Employee rights
• Inducement in B.C.: What employees need to know

Looking to change jobs? Speak to an employment lawyer

Before signing 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.