Client Win: Justice for a Dedicated Parts Administrator Replaced by Automation

Zoldowski v. Strongco Corporation

Samfiru Tumarkin LLP proudly represented Ms. Zoldowski a 39-year-old mother of three who, after 17 years of loyal service, was suddenly let go by Strongco Corporation and replaced by an automated system. In a decisive ruling, the Ontario Superior Court of Justice awarded her a 14-month severance package, recognizing her dedication and condemning the employer’s failure to provide proper compensation or notice.

Facts of the Case

• Employee Background: Zoldowski began her career at Strongco Corporation at just 22 years old, dedicating 17 years to various roles before becoming a Parts Administrator, earning $47,998 annually.
• Nature of Employment: Her responsibilities with the heavy equipment dealer centered on inventory management and administration. In 2015, Strongco automated her role using an electronic inventory system, leaving her jobless.
• Dismissal Timeline: On February 12, 2015, Zoldowski was dismissed without cause. Despite her long service, she received only the minimum entitlements under Ontario’s Employment Standards Act (ESA). No additional severance was provided, disregarding her contributions and tenure.

• Mitigation Efforts: Determined to rebuild her career, the Zoldowski applied to numerous jobs in the Greater Toronto Area (GTA), sought job counseling, and engaged with employment platforms. Her efforts yielded just one unsuccessful interview, all while balancing the demands of raising three children and caring for her ill stepmother.

What was at stake?

• Amount of Severance: The court had to determine the fair amount of severance pay, weighing Zoldowski’s age, tenure, and employment prospects.
• Mitigation Efforts: Another key issue was assessing the client’s diligent efforts to find new work and deciding how future mitigation should be addressed.

The Court’s Decision

Severance Pay: The court awarded a 14-month severance package, citing:

• Loyalty and Length of Service: Seventeen years of continuous employment reflected dedication and substantial investment in Strongco.
• Age and Skills: At 39, Zoldowski’s specialized skills—though marketable—were uniquely vulnerable to automation, complicating her job search.
• Economic Realities: The court recognized the economic downturn in 2015’s GTA job market, which significantly limited opportunities for comparable employment.

Duty to Mitigate: Justice Hood determined that Zoldowski had made diligent efforts to find new work, such as applying for jobs and seeking professional support. To manage future mitigation, the court adopted the trust and accounting approach, which means:

• Zoldowski will report any earnings during the notice period.
• Any income earned will be reimbursed to Strongco to offset damages.

The court dismissed Strongco’s preference for a reassessment later, calling it an inefficient and costly option.

Key Takeaways for Employees

• Your Service Matters: Long tenure strengthens claims for substantial severance amounts, even in lower-level positions.
• Navigating Automation: Being replaced by technology can complicate your job search, but our courts typically recognize these challenges.
• Mitigation Protects Your Rights: Documenting your job searches and using professional resources can build a stronger case.

Key Takeaways for Employers

• Automation Isn’t a Shield: Replacing employees with technology doesn’t exempt you from providing fair severance.
• Economic Context Matters: Layoffs during tough economic times may lead to bigger severance packages due to limited job opportunities.
• Clear Communication is Crucial: Employers need to clearly explain dismissals and provide proper paperwork to avoid disagreements about what employees are owed.

Workplace issue? Contact our team

Since 2007, Samfiru Tumarkin LLP has helped thousands of non-unionized employees resolve workplace issues. If you’ve been offered a demotion or unfair severance package, our experienced lawyers can help you understand your rights and secure fair compensation.

Whether you’re in Ontario, Alberta, or B.C., we can review your situation, enforce your rights, and ensure that you receive the compensation you deserve.