The employee in this case acted hastily, and the employer prevailed against his constructive dismissal claim. However, the employer may have avoided the time and expense of litigation if the bonus agreement had contained clear, concise language.
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.
Three popular articles this week on HRinfodesk deal with enforceability of ESA based termination clause; maternity leave and bonus payment; and accessibility certification program.
Three of the most popular articles this week on HRinfodesk deal with employment standards proactive inspections; disclosure under privacy law; and severance entitlements.
Just like pre-nuptial agreements, employers should contemplate termination when their employment contracts are drafted. A recent case illustrates why it is important to include a legally enforceable termination clause in an employment contract for all employees.
Here are the top three articles most viewed on HRinfodesk in the week of July 30 in the areas of dismissal, health and safety and employee relations: