‘You must be actively employed to receive bonus’—or not, says Ontario court

October 02, 2016 - by: Shane Todd 0 COMMENTS

by Shane Todd

In an attempt to their limit severance exposure, employers often require that an employee be “actively employed” on the bonus payment date in order to be eligible to earn a bonus. The idea being that the severance payable to a dismissed employee would not have to take into account an employee’s bonus earnings as the employee would not be able to satisfy the “active employment” requirement contained in the applicable bonus plan. However, as the Court of Appeal for Ontario recently confirmed in Paquette v. TeraGo Networks Inc., 2016 ONCA 618, “active employment” requirements are insufficient to remove or limit a dismissed employee’s rights.

What happened

Trevor Paquette was employed by TeraGo Networks for 14 years. He earned a base salary and was eligible for an annual bonus. The bonus plan required Paquette to be “actively employed” at the time the bonus was paid in order to receive it. In November 2014, Paquette was terminated without cause. The parties could not agree on a severance package and so Paquette sued TeraGo for wrongful dismissal. read more…

Benefits beyond age 65?

June 26, 2016 - by: Marc Rodrigue 0 COMMENTS

By Marc Rodrigue

The laws that generally provided for mandatory retirement in Canada have been eliminated. Across Canada, with very few exceptions, employees generally cannot be forced to retire at age 65. But can their benefits be cut off at age 65?

Even if employers are permitted to cut off benefits to workers 65 and older under human rights antidiscrimination laws, are they contractually entitled to do so? Recent labor arbitration decisions indicate that if employers don’t properly contract to cut off benefits, they may not be entitled to cut off benefits at all.

read more…

Incentive plan entitlements on wrongful dismissal

November 08, 2015 - by: Richard Johnston 0 COMMENTS

By Richard E. Johnston

In Canada, the wording of incentive plans can have a significant impact on the payments required on termination without cause. This point was highlighted by three Ontario decisions earlier this year. read more…

No short-term disability benefits for tummy tuck recovery

February 08, 2015 - by: Louise Bechamp 0 COMMENTS

by Louise Béchamp

In an interesting case, the Superior Court of Quebec in Syndicat des agents de la paix en services correctionnels du Québec v. Pineau confirmed on judicial review an earlier arbitration decision denying an employee short-term disability benefits for the recovery period following cosmetic surgery. read more…

Insuring long-term disability insurance

October 26, 2014 - by: Richard Johnston 0 COMMENTS

by Richard E. Johnston

In Canada, benefit plans are subject to legislation related to income tax, human rights, and employment standards. However, there is little specific regulation of benefit plans other than pension plans. A key exception is the provision of long-term disability benefits that are not funded under an insurance contract—at least for federally regulated employers such as the banks, airlines, inter-provincial trucking companies, and employers in Ontario. read more…

Duties more important than titles when determining eligibility for overtime

August 03, 2014 - by: Marc Ouellet 0 COMMENTS

by Marc Ouellet

The issue of overtime has become a major concern for employers in the wake of class actions on the subject in Canada. The Québec Act Respecting Labour Standards (ALS) provides exemptions from the right to overtime including for employees in managerial positions. In Skiba v. Playground, L.P., the Court of Appeal of Québec recently clarified which employees may be exempt as “managers” in Quebec. While the applicable statutes vary across Canada, the fundamental principles applied are similar. Thus this decision may have persuasive value outside of Quebec. read more…

Minimum wage debate alive in Canada, too

April 06, 2014 - by: Bonny Mak Waterfall 0 COMMENTS

By Bonny Mak Waterfall

Minimum wage increases may not be quite as controversial in Canada as they appear to be in the United States, but the issue is certainly alive. Four Canadian provinces and one territory have announced increases to their minimum wage rates for 2014: read more…

Overtime class actions on the increase in Canada

March 30, 2014 - by: Hannah Roskey 0 COMMENTS

By Hannah Roskey

Overtime class actions are alive and well in Canada. This was confirmed by a recent Ontario court decision. In Rosen v. BMO Nesbitt Burns Inc., a Superior Court judge allowed such a class action, brought on behalf of a group of investment advisers, to proceed. read more…

Until death do us part: Attempts to reduce retiree benefits fail—for now

September 01, 2013 - by: Northern Exposure 0 COMMENTS

By Ralph Nero, Ross Gascho, and Keri Bennett

As in the United States, some Canadian employers have attempted to eliminate or reduce post-retirement benefits in order to address escalating costs. In two recent cases, Canadian employers were found to be not entitled to reduce post-retirement health and life insurance benefits. Courts in both Ontario and British Columbia have recently ruled that, under the respective plans before them, the employer’s “reservation of rights” (ROR) to make such changes was not sufficiently clear and unambiguous. read more…

Indefinite protection for federal employee disabled by work-related injury

November 11, 2012 - by: Nicola Sutton 0 COMMENTS

by Nicola Sutton

When the employment relationship becomes impossible to perform because of a factor outside the control of a Canadian employer or employee, the employee’s employment can be terminated by virtue of frustration of contract. When an employee won’t be able to return to work because of injury or illness, the same applies. But not so for federally regulated employers such as banks, airlines, inter-provincial trucking companies, etc.

According to the recent decision of Kingsway Transport v. Teamsters, Local Union 91, the frustration argument is no longer available for those employers when the employee’s inability to return to work is because of a work-related injury or illness. read more…

 Page 1 of 5  1  2  3  4  5 »