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”
Top 10 employment law developments in 2017
In 2017, the provincial legislature and Ontario judges continued to change Ontario’s employment laws. These changes resulted in higher payroll costs and a more regulated workplace. This blog briefly identifies 10 employment law developments from the past year.
Post-termination bonus entitlement
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.