How can employees ensure that their aggregate compensation is being accounted for when calculating entitlements for sales or other high-compensation roles?
Here are 3 key considerations:
🔹Employment Standards Act Minimums
It’s the employer’s responsibility to consider all compensation earned by an employee during the preceding 12-week period prior to contract termination. This includes any substantial payments received during that period, which can significantly increase ESA minimums.
Employers may have provisions in place that will only pay out an employee who is actively employed or upon termination. If, for instance, the employee was in the process of closing a sale at the point of termination, they may be entitled to incentives from that sale.
🔹 Total Compensation
Employees should negotiate for fair compensation during a period of reasonable notice. This includes all forms of compensation, including any bonuses, stock options, and other incentives.
🔹 Understand Common Law Notice Entitlements
Common law notice provides protections beyond statutory minimums.
Since this is enforceable in court, it’s in the employer’s best interest to account for common law notice in settlements to avoid incurring significant legal fees.
Regardless, it’s important to consider this if you receive an egregiously low initial offer, as it often indicates that they don’t want to pay common law notice.
If you’re interested in knowing more about your entitlements, contact us to receive excellent advice.
507 King St. E. Toronto, ON, M5A 1M3
Chris Robertson, B.A., LL.B.
Chris Robertson, B.A., LL.B.