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.
Not exact matches
Notably, the evidence in that case established that
during the
notice period there was an «unprecedented boom» in the industry the plaintiff had been
employed in.
Mr. Paquette argued that he was notionally
employed by TeraGo Networks
during the
notice period, and therefore was entitled to his bonus.
TeraGo Networks successfully argued that Mr. Paquette was not entitled to a bonus that would have been paid
during the reasonable
notice period because the terms of the bonus plan required that Mr. Paquette be «actively
employed» on the date the bonus was to be paid.
For example, the Ontario Court of Appeal in Paquette v. TeraGo Networks Inc. 6 found that a term in a bonus policy that required the employee to be actively
employed when the bonus is paid, without more, is not sufficient to deprive an employee of a claim for compensation for the bonus he or she would have received
during the
notice period.
In circumstances where, as here, there was a finding that the bonus was an integral part of the terminated employee's compensation, [the employee] would have been eligible to receive a bonus in February of 2015 and 2016, had he continued to be
employed during the 17 - month
notice period.
Justice Perell wrote at paragraph 48 that when judgment is granted before the expiration of the reasonable
notice period the courts have
employed three approaches to deal with the plaintiff's own going duty to mitigate
during the balance of the
notice period: