Not exact matches
In Nagribianko v. Select Wine Merchants Ltd., the Ontario Court of Appeal examined the enforceability of probationary clauses and ultimately concluded that if parties to an employment contract agree to a probationary
period, the right to common law
reasonable notice can be rebutted where the employee is terminated
during the probationary
period.
In other words, if a dismissed employee is entitled to 10 months
reasonable notice and 18 weeks»
notice and severance pursuant to the ESA, the court will award the dismissed employee damages representing 10 months»
notice and, presuming the ESA entitlement has been paid, will reduce the award of damages for the money already paid to the employee
during the
notice period.
At common law, as long as a probationary employee is given a fair opportunity to demonstrate his or her suitability for long - term employment, an employer will be able to terminate the employee's employment at any time
during the probationary
period without providing
reasonable notice or damages
in lieu.
(3) Subsection (1) does not apply if the temporary help agency offers the assignment employee a work assignment with a client
during the
notice period that is
reasonable in the circumstances and that has an estimated term of one week or more.
This case is a timely reminder for employers
in relation to two issues: (1) the standard of misconduct that qualifies as «just cause»; and (2) the potentially significant liability that an employer can incur when a wrongfully dismissed employee becomes disabled
during his or her
reasonable notice period.
As many employers know, if one's employment is terminated without cause and the employee is provided pay
in lieu of
reasonable notice, the employee is nonetheless entitled to his or her entire compensation package
during the
reasonable notice period.
Demonstrate that the employee would not have received a payment or that the bonus would have been nil as per the terms of the bonus plan notwithstanding the employee's eligibility to still participate
in it
during their
reasonable notice period.
The Court of Appeal's decision
in Paquette suggests that there are only two effective ways of divesting an employee of a bonus that would otherwise have been payable
during the
reasonable notice period.
The Supreme Court of Canada reiterated
in Honda Canada Inc. v. Keays, 4 at para. 32 that damages are confined to the loss suffered as a result of the employer's failure to give proper
notice of dismissal, measured by the loss of wages and salary, and other benefits, that would have been earned
during the
reasonable notice period.
In my view, the plaintiff's decision to increase the business opportunities of his pre-existing company was a
reasonable step to take
during the
notice period up to December 5, 2013.
In other words, the employer may take the position that the employee is entitled to his or her base salary
during the
reasonable notice period but is not entitled to continue to collect his or her bonus, stock options or employer pension contributions.
In Correa, the Court awarded a lump sum payment for the maximum
notice period, which included damages for the unexpired
period of
reasonable notice and the plaintiff was ordered to account to the defendant for any earnings
during the
notice period.
The Court found that a term
in a bonus policy that requires active employment when the bonus is paid, without more, is not sufficient to deprive an employee terminated without
reasonable notice of a claim for compensation for the bonus he or she would have received
during the
notice period, as part of his or her wrongful dismissal damages.
A dismissed employee is entitled to be made whole
during his or her
reasonable notice period.1
In other words, the employee's severance or termination package should include all the employee's compensation and benefits (including any commission, bonuses, stock options, pension contributions and insurance benefits) that the employee would have received had the employee remained actively employed
during the
notice period.
The remedy is damages paid by the employer
in the amount equal to the compensation that would have been earned by the employee
during the
reasonable notice period that is owed.
Usually, an employer may choose to terminate an employee by providing «
reasonable notice» of termination or payment
in lieu equivalent to earning that would have been paid
during the
notice period.
Justice Collier explained that «[t] he law
in Québec concerning the payment of bonuses is similar to that
in other Canadian provinces... [a] n employee is entitled to receive a bonus owed
during a
notice period when the employee has a
reasonable expectation, based on past practice, that it will be paid.»