Figuring out an employee’s entitlements upon termination can be tricky in Canada. It can be an even trickier exercise for commissioned employees. For example, are employers required to pay employees commissions for deals that close after they are terminated? Unless the employment contract explicitly states otherwise, the answer is probably.
Employers have a choice when they decide to terminate an employee in Canada: They can provide “working notice” or they can pay termination pay in lieu of notice. If payment is made in lieu of notice, the general rule is that an employer must provide the terminated employee an amount at least equal to the wages the employee would have earned if that employee had worked during the notice period.