Supreme Court Ruling on Bonus Entitlements
Case Overview:
A Canadian legal case has shed light on bonus entitlements for employees, particularly those who experience job loss. The ruling impacts both executives with incentive-based bonuses and ordinary workers.
Key Points of the Ruling:
- Employees entitled to bonuses or incentives during their notice period are now protected.
- This applies broadly to any type of bonus, including commissions and Christmas bonuses.
- Employers must update contracts to reflect this protection.
Background:
Mr. Howard Levitt, an employment lawyer, highlighted that this ruling affects a significant portion of Canadians. He emphasized that both average workers and executives with similar programs could be impacted. The ruling ensures employees receive their bonuses even if they leave their jobs due to wrongful dismissal.
Implications for Employers:
- Bonuses tied to job performance or retention require contract updates.
- Workers may lose bonus entitlements if they are involuntarily dismissed, as per the ruling.
Conclusion:
This ruling is a significant step toward ensuring employees receive their bonuses despite job loss. It underscores the need for employers to revisit their bonus policies and contracts.
