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Court ruling making it harder for employers to avoid paying bonuses to workers dismissed without cause

Employees often rely on bonuses as a big part of their income and work hard throughout the year with the understanding that the efforts will be rewarded with a well–earned bonus. Employers on the other hand often attempt to limit the employee’s entitlement to bonuses and other incentives after termination, by including special contractual limitations in the employment and benefit plan contracts of the employee. In two recent decisions by the Ontario Court of Appeal the court has made it significantly more difficult for employers to avoid paying bonuses to wrongfully dismissed workers.

 

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