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.
If the variable compensation plan is ambiguous about payment after the employee has been dismissed then the employee will be entitled to the variable compensation if it would have been
paid during the reasonable notice period.4
Not exact matches
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.
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.
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.»
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.
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.
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.
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.»