Bonuses — Ontario Employment Law

Riva Plumbing Limited v. F.

Riva Plumbing Limited v. F. - Unpaid Bonus, Non-Compete

This is an appeal to the Court of Appeal from a trial judge's decision dismissing the appellants' claims and allowing a counterclaim. The employer sued former employees for economic torts, breach of fiduciary duties, and breach of a settlement agreement containing non-competition clauses. One former employee counterclaimed for an unpaid bonus. The trial judge dismissed the employer's claims due to lack of evidence and allowed the counterclaim, finding the bonus was non-discretionary and did not require ongoing employment. The Court of Appeal dismissed the appeal, finding no errors in the trial judge's factual and credibility findings.

Brant Securities Limited v. G.

Brant Securities Ltd v G.: Amended Contract Consideration

This is an appeal to the Court of Appeal from a motion judge's decision granting summary judgment to the employer. The employer sued to enforce an amended promissory note against the dismissed employee, who counterclaimed for set-off of unpaid bonuses from 2014 and 2015. The motion judge found the amended note was valid and supported by fresh consideration, barring the employee's claims to the earlier bonuses. The Court of Appeal upheld this decision, agreeing that the amended note resolved the parties' past issues, deferred tax consequences, and extended interest-free status as valid consideration.

L. v. Allstate Insurance

Class Action: ESA Certification for BDA Bonuses

This is a certification motion in a class action lawsuit brought by Business Development Agents (BDAs) against Allstate Insurance under the Employment Standards Act. The court certified the class action for claims regarding Agency Performance Bonuses (APB), but denied certification for Annual Incentive Plan bonuses and public holiday pay claims due to lack of commonality or evidence.

N. v. University Health Network

Bonus During Severance: N. v. UHN Appeal

This is an appeal from a motion judge's decision regarding an employee's entitlement to a discretionary bonus and secondment payout during a 12-month severance period. The Court of Appeal allowed the appeal in part, finding the bonus was an integral part of compensation and awarding it for the severance period, while dismissing the claim for the remaining term of the secondment agreement.

Celestini v. Shoplogix Inc.

Wrongful Dismissal: 12-Year Executive Awarded 18 Months Notice

A wrongful dismissal case involving a senior executive with 12 years of service who was terminated without cause. The court applied the changed substratum doctrine to find the contract's termination provisions unenforceable and awarded 18 months of reasonable notice. The court also upheld the plaintiff's mitigation efforts and awarded damages for unpaid bonuses.

Battiston v. Microsoft Canada Inc.

Wrongful Dismissal: 23-Year Employee Awarded 23.75 Months Notice

This wrongful dismissal case involved a plaintiff with 23 years of service who was terminated at age 53. The court awarded 23.75 months' notice, applying the Bardal factors, and granted damages for lost bonuses, merit increases, and unvested stock awards, while dismissing the claim for the 2018 bonus.

Andros v. Colliers Macaulay Nicolls Inc.

Employer's Appeal Dismissed; 8 Months' Notice Upheld

The employer appealed a trial decision that found a termination clause unenforceable for failing to comply with ESA minimum standards. The Court of Appeal dismissed the appeal, upholding the 8-month reasonable notice period and damages for lost bonuses. The Court also awarded the employee damages for lost benefits valued at ten percent of base salary during the notice period.

H. v. H.

H. v H. Limitation Period Appeal

This was an appeal to the Court of Appeal from a summary judgment motion that dismissed the plaintiff's action as statute-barred. The plaintiff had sued his former employer for unpaid deferred salary and a share ownership interest. The motion judge found the claim was discovered in 2009 and dismissed it. The Court of Appeal allowed the intervenor law firm's appeal, holding that the motion judge erred by failing to address anticipatory breach and by deciding the matter on summary judgment when there were genuine issues for trial regarding the unwritten contract's terms.

H. v. Coreio Inc.

Constructive Dismissal: Remote Work Termination Appeal

This is an appeal by an employer dismissed by the Court of Appeal for Ontario in a constructive dismissal case. The court found that ending a longstanding remote-work arrangement breached an essential term of the employment contract, amounting to constructive dismissal. The court also addressed mitigation duties regarding commuting and bonus entitlements during the notice period.

Andros v. Colliers Macaulay Nicolls Inc.

Wrongful Dismissal: 8 Months Notice Awarded After Clause Unenforceable

This is a summary judgment decision in a wrongful dismissal case involving a plaintiff terminated without cause. The court found the termination clause unenforceable because it potentially reduced statutory entitlements under the Employment Standards Act, 2000. Consequently, the plaintiff was awarded eight months' reasonable notice at common law, along with a pro rata bonus for the notice period, but no damages for loss of benefits due to lack of evidence.

B. v. Lower Lakes Towing Ltd.

This is a summary judgment motion concerning an employment contract dispute involving bonuses and payment in lieu of notice.

B. v. MD Physician Services Inc.

B. v. MD Physician Services: Bonus & ESA Appeal

This appeal concerns whether an employee who resigned before bonus payout dates was entitled to receive installments under a Variable Incentive Plan containing an 'active employment' requirement. The Court of Appeal for Ontario upheld the requirement, finding that future bonus installments did not constitute 'wages' under the Employment Standards Act at the time of resignation and that the clause did not violate the Act's prohibition on withholding wages.

F. v Nordstrong Equipment Limited

Wrongful Dismissal: 6-Year Controller Awarded 10 Months Notice

This wrongful dismissal case involved a controller with six years of service who was terminated without cause and had no written employment agreement. The court applied the Bardal factors holistically to determine reasonable notice, awarding the plaintiff 10 months' notice. Additionally, the court awarded $20,000 for a disputed 2016 bonus but declined to award a 2017 bonus for the notice period, while also granting damages only for a proven shortfall in dental expenses during the notice period.

W. v. Wipro Limited

W. v. Wipro: Unpaid Incentive Payments Dispute

This is a motion for summary judgment in an employment contract dispute regarding unpaid incentive payments. The plaintiff, an employee, claimed entitlement to bonuses for a large IT services deal, arguing that the Master Services Agreement created a binding obligation for payment. The court dismissed the motion, upholding the employer's policies and finding that signed Statements of Work were required to trigger incentive payments, which the plaintiff was aware of.

B. v Potash Ridge Corporation.

This is an employment contract dispute concerning the interpretation of employment agreements and the entitlement to bonuses under the Employment Standards Act.

B. v UBS Securities Canada Inc.

Wrongful Dismissal: 14-Year Employee Awarded 18 Months Notice

This wrongful dismissal case involved an employee terminated after 14 years of service without proper notice or payment of bonuses for 2012 and 2013. The court awarded 18 months' notice along with bonuses, vacation pay, referral fees, and benefits, finding the employer's conduct unreasonable. Additionally, the court addressed costs and pre-judgment interest, awarding $225,000 in partial indemnity fees and applying a lump sum approach for interest under the Courts of Justice Act.

L. v State Street Bank and Trust Company

This is an appeal from a trial decision regarding an employee's claim for incentive compensation. The Divisional Court dismissed the appeal, finding no palpable and overriding error in the trial judge's determination that the employer's bonus policy precondition was not sufficiently communicated to the employee.

G. v. Newcom Business Media Inc.

Appeal allowed in part on bonus damages

This is an appeal from a wrongful dismissal damages ruling concerning the calculation of commissions and bonuses during the notice period. The Court of Appeal dismissed the appeal regarding the continuation of CARS advertising commissions but allowed the appeal on the bonus issue, finding a misapprehension of evidence by the motion judge. The court also varied the costs order based on an offer to settle.

U.S. Steel Canada Inc. (Re)

U.S. Steel Canada: CCAA Stay and Retention Bonuses

This is an interlocutory proceeding regarding the characterization and payment of lump sum retention bonuses owed to employees of U.S. Steel Canada Inc. during its insolvency under the Companies’ Creditors Arrangement Act (CCAA). The court determined that the bonuses constituted compensation for post-filing services rather than pre-filing termination obligations, and exercised its discretion under section 11 of the CCAA to order their payment based on fairness and equity.

Paquette v TeraGo Networks Inc.

Wrongful Dismissal: 14-Year Employee Awarded 17 Months Notice

This wrongful dismissal case addressed the reasonable notice period for a senior manager with 14 years of service who was terminated without cause during an economic downturn. The court fixed the notice period at 17 months, applying the Bardal factors, but denied the plaintiff's claim for bonus payments because the employment contract required active employment on the payout date. The court also applied the Trust and Accounting Approach regarding mitigation, noting the plaintiff remained unemployed despite diligent efforts.