An Employer’s Guide to Managing Employees with Progressive Discipline

An Employer’s Guide to Managing Employees with Progressive DisciplineIf you’re an employer, you know that, whether you have 10 employees or 100, there is an art to managing your workforce and a well-oiled human resource process is necessary for a well-run business. You invest a lot of time and money into your employees and, understandably, expect attendance, productivity, and proper work conduct in return that will benefit your business as a whole. 

If you have employees who aren’t meeting the expectations of their role, it’s important not to have a knee-jerk reaction. Instead, progressive discipline gives both the employer and employee the opportunity to get on the same page and provides the employee with a roadmap for improvement.

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The Importance of Being Honest and Sensitive: The $50k+ Moral and Punitive Damage Award

Moral & Punitive Damage AwardEmployers may want to reassess how they terminate their employees and the timeframe and manner through which they provide their employees with their termination-related entitlements. Pohl v Hudson’s Bay Company, 2022 ONSC 5230, a recent Ontario decision, demonstrates, amongst other things, what a court may award an employee whose dismissal was conducted by an employer in an unfair manner.  

What Happened?

A 28-year full-time Hudson’s Bay Company Sales Manager in his 50s was terminated on a without-cause basis and immediately walked out the door. He earned an annual salary of $61,254 plus pension contributions and other benefits.

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Termination Entitlements: Benefits, Bonuses and Commissions

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. 

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