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.
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.
Alberta law, like that of Ontario, requires a terminated employee to exert
reasonable efforts to mitigate lost wages by seeking alternative
employment during the applicable
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.
Any
employment income that was earned by the plaintiff from other sources
during the
reasonable notice period will then be deducted.
A court will reduce any monetary award made to the former employee by the amount of
employment income the employee earned from other sources
during the
reasonable notice period.
It concluded that «a term 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.»
However, any agreement or policy that limits the employee to only certain entitlements
during the
reasonable notice period must comply with the minimum standards of either the
Employment Standards Act («ESA») or Canada Labour Code.
Damages payable upon termination of
employment may include benefits
during the
reasonable notice period, including any bonuses and other incentives that would otherwise have fallen due
during that
period.
Employees and employers are entitled to negotiate
employment contracts that do not provide for the continuation of benefits or compensation (typically stock options, bonuses and pension contributions)
during the
reasonable notice period if the employee is dismissed without cause.
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.
That is, the appellant took issue with the trial judge's finding that under the
Employment Agreement the appellant was not entitled to compensation for the loss of the LTIP benefits he would have earned
during a
period of
reasonable notice because the appellant was only entitled to severance pay, not the salary and other benefits which would have flowed to him
during a
period of
reasonable notice.
Deducting the benefits would provide the wrongfully terminated employee with exactly what he would have received had the
employment contract been performed: an amount equal to his salary
during the
reasonable notice period and thereafter defined benefits for the rest of his life.