Onex Corporation buys aerospace logistics firm Farsound Aviation: Employee rights

Onex Corporation, the Toronto-based asset manager, has expanded its aerospace portfolio by acquiring Farsound Aviation, an aircraft logistics company. The acquisition marks another investment in the aerospace industry by Onex, which also owns WestJet Airlines.

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Details

• Acquisition Target: Farsound Aviation, a British company specializing in supplying parts for engine maintenance and repairs to airlines and aircraft owners globally.
• Seller: Farsound was acquired from AGIC Capital, a Hong Kong-based private equity fund.
• Financial Terms: The financial terms of the deal were not disclosed.
• Onex’s Investment: The acquisition was made through Onex’s Opportunities Fund, which has raised US$820 million and is focused on making strategic investments ranging from US$160 million to US$200 million in equity per business.
• Farsound’s Operations: Founded in 1986, Farsound operates facilities in the United Kingdom, Spain, Japan, the United States, and Canada, and supports major engine manufacturers such as General Electric, Pratt & Whitney, and Rolls-Royce.
• Past Ownership: Farsound has been owned by three private equity funds. It was first sold by its founding family to Rubicon Partners in 2011, and then to AGIC Capital in 2019.

Who pays severance if Onex doesn’t keep certain Farsound Aviation employees?

If the Onex acquisition of Farsound Aviation results in you losing your job in Canada, then Farsound Aviation must provide you with full severance pay.

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

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

If Onex 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 Farsound Aviation.

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

LEARN MORE
• Employer sold the business in B.C.? Know your rights to severance
• Rights to severance in Alberta when your employer sells the business
• Sale of business in Ontario: Rights to severance

How is severance pay calculated?

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

This includes individuals working full-time, part-time, or hourly in B.C., Alberta, and Ontario. The amount of compensation you are 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.

If your company doesn’t provide you with the correct amount, you have been wrongfully dismissed and should seek legal counsel immediately. Samfiru Tumarkin LLP regularly resolves wrongful dismissal claims and can help you secure proper severance.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance for tech sector staff
• Severance packages in mass layoffs

Can Onex make major changes to Farsound employees’ jobs?

In Canada, non-unionized employees don’t have to accept substantial changes to their job that Onex 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 that you have been constructively dismissed, don’t resign before contacting our firm.

ADDITIONAL RESOURCES
• Changes to your employment in B.C.: Your rights
• Job changes in Alberta: What employees need to know
• Can my employer make changes to my job in Ontario?

New employment contracts for Farsound Aviation staff

If you work for Farsound Aviation and you receive a new employment contract, 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, 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 Canada 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

Received a job offer? Speak with an employment lawyer

Before accepting 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 B.C., Alberta, and Ontario 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.