We have started the last month of 2019 and it is time for my annual top employment law stories of the year. 2019 has been a relatively good news year for Ontario employers.
This blog reviews a recent Ontario Court of Appeal decision, Manastersky v. Royal Bank of Canada, 2019 ONCA 609 (CanLII), that considered whether or not an employer can discontinue a variable compensation plan that accounts for about 50% of an executive’s total compensation.
Some employees receive a large percentage of their total remuneration in variable compensation. A much litigated issue is whether the employer is required to pay variable compensation to a terminated employee during the applicable notice period and if so how is this compensation calculated.