Bonuses or Bust: Rising trend of quitting over bonus expectations in Canada

A recent study by recruitment firm Robert Walters Canada reveals a significant trend among Canadian professionals in sectors such as finance, technology, and accounting.

The study finds that a large portion of these professionals are considering quitting their jobs if they do not receive their expected year-end bonuses.

This shift in employee priorities highlights a return to a focus on monetary compensation, a change from recent years where flexibility and work-life balance were more emphasized.

• High Quit Risk: About 74% of Canadian professionals in finance, technology, and accounting may quit if they don’t receive year-end bonuses.
• Shift in Employee Priorities: After focusing on flexibility and mental health, a high-quality paycheck is now a top priority for employees.
• Employers’ Challenge: Only 47% of employers have allocated funds for bonuses, and 36% have eliminated them, risking employee turnover.
• Market Dynamics: The job market initially favoured employers due to economic challenges, but the balance is shifting back towards employees.
• Career Cushioning: Professionals have prepared for job changes by updating resumes and profiles, anticipating better opportunities.
• Talent Retention: Companies are encouraged to offer alternative benefits like remote or hybrid work and career development to retain employees.

Can your employer stop giving you a bonus?

In Canada, your employer can’t stop providing you with a year-end bonus if they regularly gave you one and it was expected each year, or indicated in an employment contract. Suddenly stopping it could be seen as a significant change to the employment terms.

This might qualify as constructive dismissal, where a job’s core conditions are altered without the employee’s consent. When this occurs, you may be able to resign from your job with a full severance package – as much as 24 months’ pay.

Other modifications, such as a new work location, a change to your duties, a demotion, longer shifts, or reduced pay, are also illegal.

Discretionary Bonus

If the bonus is a discretionary part of your compensation package, your employer generally has more flexibility to modify or withdraw it.

LEARN MORE:
• Do you still get your bonus when you’re fird or laid off?
• A B.C. employee’s right to bonus pay when laid off
• Do I get my bonus if I’m fired in Alberta?

Talk to an employment lawyer

The knowledgeable team of employment lawyers at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals across the country.

In addition to severance package negotiations, our lawyers have experience securing solutions for the following legal matters:

If you are a non-unionized employee in Ontario, Alberta, or B.C. who needs help with an employment issue, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.