Author: Site Editor

In Ontario, the manner of termination can be compensable where it causes the departing employee injury beyond the normal hurt feelings associated with the loss of employment.

Bonuses that are earned but unpaid are routinely overlooked. “Active employment” exclusions and the like are commonly struck down by Courts in Ontario which are alive to the potential for mischief in industries where the bonus compensation can be equal to or greater than the annual salary.

In Ontario, your termination pay is calculated by reference to your earnings at the time of termination. Courts will almost always start with an analysis of bonuses and commissions paid over the preceding three years of employment and so should employers.

When understanding your severance entitlements, make sure you’re accounting for these often-overlooked considerations

Significant compensation increases and promotions are documented in amending or revised employment agreements. These agreements may also contain temporary layoff provisions and termination provisions eliminating any entitlement to common-law notice. 

Many employers, having resisted letting employees go, are surprised to learn that the notice periods required by the common-law in Ontario are substantial. This leads to offers on termination that are well below what a Court might award.