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Bonus entitlement on termination

The official word on unofficial bonus policies

On September 25, 2017, the Ontario Superior Court of Justice released its decision Fulmer v. Nordstrong Equipment Limited, 2017 ONSC 5529 (“Nordstrong”), where the Court dealt with a wrongful termination case, and issued a noteworthy determination on an employee’s bonus entitlements.

 

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Must you include bonuses when calculating lost wages?

In the case, Bain v. UBS, the Ontario Superior Court of Justice tackled the issue of whether bonuses are too be included when calculating the income that an individual would have earned during a period of reasonable notice.

 

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Three popular articles this week on HRinfodesk

The three popular articles this week on HRinfodesk deal with: a case where an employer’s appeal to not pay unpaid wages and termination pay was somewhat successful; a matter where an arbitrator issued very different decisions when it came to two employees who grieved their terminations; and two cases that address employee entitlement to damages in lieu of a bonus on termination.

 

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Employers still liable for bonuses during notice period

The recent decision of the British Columbia Supreme Court in Szczypiorkowski v. Coast Capital Savings Credit Union is not particularly groundbreaking, but it does affirm a number of important points for employers…

 

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Bonus entitlement on termination

In assessing either termination packages, or damages flowing from wrongful dismissal, counsel is often faced with a myriad of non salaried compensation payable to employees. This compensation includes items such as stock options, stock grants, non monetary benefits such as health and dental insurance, and bonuses. Over the years, the provisions of bonus plans have become more sophisticated, and more complicated. Employers have attempted, with the assistance of counsel, to include provisions for various contingencies in these bonus plans in order to better protect the employer. However, the more complicated the plan, the more difficult it is to assess whether or not a dismissed employee is, in fact, entitled to compensation for bonuses which might have been earned during the period of reasonable notice.

 

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