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bonus plans

By Stringer LLP | 4 Minutes Read October 21, 2016

Discretion is the better part of bonus plans – Limiting employee entitlement to post-termination bonus payments

Employees who are terminated without notice can sue employers for the total compensation, including bonus payments, which they would have otherwise received during the notice period if reasonable notice had been given.

Article by Stringer LLP / Employee Relations, Employment Standards, Payroll / bonus payments, bonus plans, bonus policy, employment law, Fraser v. Canerector Inc, Lin v. Ontario Teachers’ Pension Plan, Paquette v TeraGo Networks Inc., payment of a bonus, post-termination bonus payments, reasonable notice period, terminated employee, terminated without notice, termination, wrongful dismissal

By Doug MacLeod, MacLeod Law Firm | 3 Minutes Read September 13, 2016

Employment contracts may need to be amended because of a recent Court of Appeal decision

Bonus plans in employment contracts are a great way to motivate, reward and retain employees. Many of these bonus plans have built–in conditions that must be met before these bonuses are paid out. For example, an employee must be actively employed at the time the bonus is paid. Increasingly, the courts are being asked to determine whether these conditions have to be met and whether a bonus is owing. A recent decision by the Ontario Court of Appeal will come as a surprise to many of you.

Article by Doug MacLeod, MacLeod Law Firm / Employee Relations, Employment Standards, Payroll / bonus payments, bonus payout, bonus plans, bonus withheld from employee, calculating damages, employment contracts, employment law, Kieran v Ingram Micro Inc., Notice of termination, Paquette v TeraGo Networks Inc., reasonable notice of termination, severance package, terminated without cause, wrongful dismissal

By Earl Altman | 4 Minutes Read April 5, 2011

Bonus entitlement on termination

In assessing either termination packages, or damages flowing from wrongful dismissal, counsel is often faced with a myriad of non salaried compensation payable to employees. This compensation includes items such as stock options, stock grants, non monetary benefits such as health and dental insurance, and bonuses. Over the years, the provisions of bonus plans have become more sophisticated, and more complicated. Employers have attempted, with the assistance of counsel, to include provisions for various contingencies in these bonus plans in order to better protect the employer. However, the more complicated the plan, the more difficult it is to assess whether or not a dismissed employee is, in fact, entitled to compensation for bonuses which might have been earned during the period of reasonable notice.

Article by Earl Altman / Employment Standards, Payroll / Bonus entitlement, Bonus entitlement on termination, bonus plans, bonuses, compensation for bonuses, damages flowing from wrongful dismissal, determination of bonus entitlement, dismissed employee, period of reasonable notice, stock grants, stock options, termination, termination packages

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