Employers are often vexed by bonus entitlement and calculation issues when weighing termination decisions and defending claims for wrongful dismissal. Bonus disputes are invariably complex and costly.
Bonus entitlement is always a juicy topic. In September the Ontario Superior Court of Justice released a decision that shed some light on the issue of how entitlement to a bonus will be treated where an employer has no formal bonus policy, but a consistent past practice.
Ever since the Supreme Court of Canada decision in 2008 in a case Evans v. Teamsters Local Union, the courts have recognized the obligation of an employee, in certain circumstances, to accept an offer of alternate employment from their employer following dismissal. This has put many employees in the awkward position of determining whether or not the offer of employment is one that must be accepted based on the Evans’ reasoning. The difficulty faced by many employees’ counsel is the degree of difference in the position being offered, and whether such difference justifies the employee rejecting the offer of employment.