Termination Entitlements: Benefits, Bonuses and Commissions
Photo by Bernard Hermant on Unsplash
Unfortunately, lots of terminations are coming across our desks these days. While most employers understand that they need to provide notice of termination, many employees have a variety of different types of compensation which may or may not continue during the notice period. As with many things in law, it depends!
Let’s go over some of the common aspects of executive termination packages.
A Primer on Notice
It all starts with notice! Unless an employee is being terminated for cause, they are entitled to notice of termination. “For cause” or “with cause” terminations are rare, so in most cases and absent egregious employee behaviour, employers will owe employees notice.
As many of our readers and clients know, we have been cautioning that the legality of certain layoffs and job changes necessitated by COVID-19 is uncertain. Generally, layoffs are only legal if the employment contract gives the employer the right to layoff, and many other job changes, such as reductions in hours or pay, raise the risk of constructive dismissal. We anticipated that at some point the Ontario government may weigh in and change the law – on Friday they did. 
