Client Win: Ontario welder sparks justice after 36 years of service snuffed out
After 36 years of dedicated service as a skilled blaze welder, Ms. Manthadi’s career was upended in the blink of an eye. When her long-time employer sold the business, Manthadi was left navigating a confusing and uncertain future with the new owner. What seemed like a promise of continued employment turned out to be anything but—five weeks later, she was unceremoniously laid off without notice, her decades of loyalty dismissed as irrelevant.
When the fight for recognition and fairness led her to court, Samfiru Tumarkin LLP stepped in. Toronto employment lawyer and partner Jon Pinkus secured a pivotal decision that upheld Manthadi’s rights, delivering a full Ontario severance package and reinforcing critical protections for employees facing similar transitions.
Here’s how we won—and why this case sets a powerful precedent for employees and employers across Canada.
The Case: Manthadi v. ASCO Manufacturing
A Career Cast Aside
Manthadi, 69, began her career in 1981 with 63732 Ontario Limited (637) as a blaze welder. For over three decades, she worked tirelessly, crafting tables and desks at the company’s Toronto location. In 2017, 637 sold its assets—including its name—to the new ASCO Manufacturing, owned by Mr. Singh. Manthadi and 19 of her colleagues were told their employment would continue uninterrupted.
On the surface, everything seemed stable. Manthadi was even asked to help move the company’s assets to ASCO’s new Brampton location. But within weeks, she was placed on a “temporary layoff,” never to be recalled. A Record of Employment claimed the layoff was due to a “shortage of work/end of contract.” At 69 years old, with a specialized skill set in blaze welding and no alternative opportunities, Manthadi faced a daunting reality: her 36 years of dedication were dismissed as if they had never mattered.
The Legal Battle
ASCO argued that Manthadi’s employment was temporary, claiming she was hired only to help with the move and not for her skills as a welder. They further insisted that her 36 years with the previous owner, 637, had no bearing on their obligations to her.
Manthadi turned to Samfiru Tumarkin LLP to fight for justice. Partner Jon Pinkus argued that:
- ASCO Took Over Responsibility for Employees: When ASCO bought the business from 637, they also took on obligations to the existing staff, including acknowledging the years of service employees like our client had already worked.
- Manthadi’s Job Was Permanent: ASCO never told Manthadi that her job was temporary. By law, a job is considered permanent unless the employer clearly says otherwise.
- Manthadi Deserved Proper Notice: After 36 years of loyal service, Manthadi had the right to fair warning—or compensation—before being let go. ASCO didn’t provide either.
The Court’s Decision: A Win for Fairness
The Ontario Superior Court of Justice ruled decisively in Manthadi’s favor, awarding her 12 months of severance pay totaling $39,834.44. The decision emphasized three key reasons why this outcome matters:
- ASCO Failed to Communicate Clearly: Justice Shaw found that ASCO never told Manthadi her role was temporary. She had every reason to believe her job would continue under the same terms as before.
- Manthadi’s Years of Service Counted: By taking over the business, ASCO benefited from Manthadi’s skills and experience. Her 36 years of service with the previous employer couldn’t just be ignored.
- Manthadi Made Every Effort to Find a New Job: Even while dealing with health challenges, Manthadi applied to over 25 jobs, showing she was serious about finding work. The court rejected ASCO’s claim that she didn’t do enough to mitigate her losses.
Why This Case Matters
Manthadi’s win isn’t just about her—it highlights the workplace rights all employees have in similar situations.
For Employees
- Your Service Matters: If your employer is sold, your years of service with the previous owner may still be recognized.
- Get It in Writing: Make sure your new employer clarifies your role and whether they are recognizing your prior service. Confirm this through an email exchange with your employer, or in an employment contract.
- Know When to Hire Help: If you’re let go unfairly, you may be entitled to compensation – as much as 24 months’ pay. An employment lawyer at Samfiru Tumarkin LLP can help you get what you’re owed when you’ve been wrongfully dismissed.
💡Crunch The Numbers: Use our Severance Pay Calculator to get a sense of what you may be owed, before consulting one of our experienced employment lawyers.
For Employers
- Clarity is Key: Clearly outline employment terms when bringing on staff during a business acquisition. Ambiguity can lead to disputes.
- Respect Employee Loyalty: Long-serving employees add value to your business. Treating them unfairly can cost you in court.
- Understand the Law: Know your responsibilities when acquiring a business, including obligations to existing employees.
We’re Here to Help
Manthadi’s win reinforces the rights of employees during business transitions. At Samfiru Tumarkin LLP, we’re proud to have fought for her and set a standard for fairness that will impact cases across Canada.
Since 2007, we’ve achieved countless victories for non-unionized employees across Ontario, Alberta, and B.C., championing fairness, clarity, and justice. At Samfiru Tumarkin LLP, we don’t just fight for our clients—we empower them to understand their rights and take control of their futures.
In most cases, we resolve disputes quickly and effectively without going to court. But when litigation is necessary, as it was in Manthadi v. ASCO Manufacturing, we’re fully prepared to go to court to secure the justice you deserve.
Are you facing a similar situation? Don’t navigate it alone. Contact us today for a consultation and let us protect your rights in the workplace.