A bonus policy may state that employees who are eligible for bonuses must also be actively employed to receive their bonus payments. That is, employers may institute an “active employment clause”. Courts will uphold valid active employment clauses, as demonstrated by Bois v. MD Physician Services Inc., 2017 ONCA 857 (CanLII).
MD Physician Services Inc. (“MD Physician”) awarded Mark Bois bonuses under its Variable Incentive Plan (“VIP”) in 2009 and 2010. Bonuses are paid in three equal instalments in the three years following the calendar year in which MD Physician awarded the bonus.
Under the VIP, any employee who leaves, or gives notice to leave the organization on or before the bonus payout date was ineligible to receive a bonus payment. Mr. Bois and MD Physician signed a letter to this effect.
Mr. Bois resigned before MD Physician paid out the final instalment of the 2009 bonus and … Continue reading “Employee forfeits $115,000.00 in bonuses by resigning; active employment clause valid”
Phishing losses exceed $224,000.00 after insurer denies coverage
In August 2010, someone called The Brick’s accounts payable (AP) department, pretending to be from Toshiba Canada. The caller said he was new to Toshiba and needed some payment details. The Brick employee faxed the payment information to the number which the caller provided.