Newmont selling Ontario gold mine for $425 million: Employee rights

What’s going on at Newmont?

Newmont Corporation (Newmont) is selling an Ontario gold mine to Toronto-based Discovery Silver Corp. (Discovery Silver) for US$425 million.

“The acquisition of the Porcupine Complex [around the Timmins area] is an important step forward as we work to build a highly profitable precious metals producer,” Tony Makuch, CEO of Discovery Silver, said in a news release.

“Through this acquisition, we are combining growing gold production at Porcupine with tremendous upside, in one of the world’s great gold camps, with our Cordero project, one of the industry’s leading silver development projects based on reserves and expected production.”

To fund the transaction and support the operation and growth of the mine, Discovery Silver has obtained $555 million in financing from Franco-Nevada.

SEE ALSO
• Bench Accounting being acquired by Employer.com after abrupt closure
• Xerox acquiring Lexmark for $1.5 billion: Employee rights
• Endeavour Mining fires CEO, alleges ‘serious misconduct’

The deal, which is still subject to certain closing conditions, is expected to be completed in the first half of 2025.

As Newmont’s Porcupine Complex prepares to come under new management, here are a few things that non-unionized employees in Ontario need to be aware of.

Who pays severance if Discovery Silver doesn’t keep certain employees?

In Ontario, the “seller” of the business is responsible for providing proper compensation to staff who lose their job.

If Discovery Silver 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 Newmont.

WATCH: Employment lawyer Lior Samfiru explains the rights workers have when their employer sells the business on an episode of the Employment Law Show.

Even without a good reason you can still get severance, but it’s very likely that you will only receive your minimum entitlements.

SEE ALSO
• Rights to severance in Alberta when your employer sells the business
• Employer sold the business in B.C.? Know your rights to severance

How is severance pay calculated?

Severance for non-unionized employees in Ontario can be as much as 24 months’ pay.

This includes individuals working full-time, part-time, or hourly in the province.

The amount of compensation you’re entitled to is calculated using several factors, including:

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.

ADDITIONAL RESOURCES
• Severance for provincially regulated employees
• Rights to severance for mining sector staff
• Severance packages during mass layoffs
• Rights to severance in a recession

If your company’s offer falls short of what our Severance Pay Calculator says you’re owed, contact us. We can determine if you’ve been wrongfully dismissed.

Can Discovery Silver make major changes to the jobs of existing staff?

In Ontario, non-unionized employees at Newmont’s Porcupine Complex don’t have to accept substantial changes to their job that Discovery Silver 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 you’ve been constructively dismissed, don’t resign before contacting an experienced employment lawyer at Samfiru Tumarkin LLP.

ADDITIONAL RESOURCES
• Job changes in Alberta: What employees need to know
• Changes to your employment in B.C.: Your rights

New contracts for Newmont employees

If you work at Newmont’s Porcupine Complex in Ontario, and you receive a new employment contract from Discovery Silver, 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 in the province, 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 Ontario can’t legally force non-unionized workers to sign a new employment contract immediately or a few days after receiving it.

SEE ALSO
• Starting a new job? Here’s how an employment contract could limit your rights
• Employment Law Show: 5 things to know about employment contracts
• Employment Law Show: Things to never do before seeking legal counsel

Workplace issue? Talk to our team

Since 2007, the experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals resolve their workplace issues.

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

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.