Ontario Court Win: Welder Secures 12 Months’ Severance After Business Sale

Samfiru Tumarkin LLP secured $39,834.44 — equal to 12 months’ pay — for an Ontario welder dismissed just weeks after new owners took over the business where she had worked for 36 years.

Sandra Manthadi had spent decades welding tables and desks at a Toronto manufacturer. When the business changed hands, she kept working. About five weeks later, the new employer laid her off and never called her back.

The company argued that she was only a temporary worker and that her earlier years of service should not count. Employment lawyer Jon Pinkus represented Sandra at trial and successfully challenged that position.

The Employer Said She Was Only Hired To Help With The Move

ASCO argued that it had hired Sandra temporarily to pack and unpack equipment. Once the move was finished, it said, her job was over.

It also argued that her 36 years with the previous employer should not affect what it owed her.

Sandra had signed a settlement with the former employer and received $5,900. ASCO argued that this agreement also prevented her from bringing a claim against it.

Our team challenged those arguments: Sandra had continued working, and the new employer had never clearly told her that her job had an end date.

Helping With A Move Did Not Make Her A Temporary Worker

The court found that Sandra had been hired for ongoing employment, not just a short assignment.

ASCO may have intended to keep her only for the move, but it had not made that clear to her. She had continued working after the sale and initially performed the welding work she had done for years.

The company could not rely on an end date it had never clearly agreed on with Sandra. Ending her employment required a proper Ontario severance package.

Her settlement with the previous employer did not prevent her from pursuing the new employer for its own dismissal.

Her 36 Years Of Experience Still Mattered

ASCO had bought an operating business and continued making the same products. Sandra brought knowledge of its work and equipment, even though her time with the new owner was brief.

The court considered her earlier service when deciding what she was owed. It also considered her age, the work she performed and the benefit her experience gave ASCO.

The judge did not treat the situation exactly as if she had remained with the original employer. Taking all the circumstances into account, the court found that 12 months of notice was appropriate.

The Court Accepted Her Efforts To Find Work

Sandra also faced a serious health setback. Five months after losing her job, she was diagnosed with thyroid cancer and underwent surgery and radiation treatment.

Once medically cleared to look for work, she searched for welding jobs and delivered résumés to manufacturing businesses

Our Team Secured Nearly $40,000 For Sandra

The Ontario Superior Court of Justice awarded Sandra $39,834.44, based on 12 months of pay.

The $5,900 she had received from the previous employer was not deducted.

Read the full trial decision: Manthadi v. ASCO Manufacturing, 2023 ONSC 3499.

What This Means For You

• A business sale does not automatically erase your work history. Your earlier service can affect what a new employer owes you. Learn more about your rights when a business is sold in Ontario.
• Ask for clear terms when ownership changes. Find out whether your job will continue, whether it has an end date and how your previous service will be treated.
• A settlement with the old employer may not end your rights against the new one. The wording and circumstances matter. Have the agreement reviewed before assuming you can’t claim more.
• Your health can matter when assessing your job search. Keep medical records and evidence of your efforts to find work, and discuss any limitations with your lawyer.

A Lesson For Employers

When buying a business, be clear about the terms offered to existing staff and how their previous service affects your obligations. Our employment lawyers can review those arrangements before a dispute arises.

Another long-service client win: See how our team helped an Ontario office administrator secure 24 months’ severance after 35 years of service.

Lost Your Job After A Business Sale?

Do not assume you are starting from zero because your employer changed. Your severance could be as much as 24 months’ pay.

Our Toronto employment lawyers, Brampton employment lawyers and team across Ontario can review your work history, agreements and dismissal to determine what you may be owed.

Many severance disputes can be resolved without going to court. When litigation becomes necessary, Sandra’s case shows how our team can challenge an employer’s position and secure compensation for a long-serving employee.