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bonus plan

Communicating bonus preconditions to employees

In the last few months, there has been an influx of commentary on the enforceability of contractual provisions purporting to limit an employee’s bonus entitlements upon termination. Following the Ontario Court of Appeal’s seminal decisions in Paquette v. TeraGo Networks Inc. and Lin v. Ontario Teachers’ Pension Plan, much of this commentary has focused on the language needed to oust an employee’s implied right to their complete compensation package during the reasonable notice period. This focus on semantics has overshadowed one other consideration that remains instrumental to the enforceability of bonus provisions—the need to sufficiently communicate to employees the preconditions of bonus eligibility.

 

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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 employee was deemed to be constructively dismissed after a temporary layoff; a decision that leaves employers questioning their bonus policies; and salary projections for 2017 released by The Conference Board of Canada.

 

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Most-viewed articles this week on HRinfodesk

The three most viewed articles on HRinfodesk this week deal with the legal implications in drafting a bonus plan, understanding public-private sector differences in work absences and updated rules for electronically filing records of employment.

 

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Deferred compensation: You can take it with you (sometimes)

Deferred compensation in the form of future bonuses, retention payments, and stock options has become a standard element of executive compensation. While there are countless variations of such plans, they are all designed to incent employees to remain with their employer, and to perform to the employee’s highest capability while he is there. In order to meet these goals, such plans will often include a deferral of the benefit once it is earned, in order to create an incentive to remain with the employer.

 

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