Can my employer take away my holiday bonus?

Concerned challenging economic conditions are on the horizon, Ernst & Young (EY) announced that U.S. staffers will not be receiving a holiday bonus in 2022.

“While EY continues to experience strong revenue growth, we have elected at this time not to fund our additional, discretionary mid-year program given the changing economic environment,” the accounting giant told the Financial Times in a statement on Dec. 10.

For the last two years, top performers in the U.S. have received merit bonuses in addition to their main bonus, which is awarded at the end of the company’s fiscal year in June.

“We remain steadfast in our commitment to being a leader in recognition and rewards,” EY added. “This includes our intention for planned annual performance-based bonuses and ongoing recognition awards.”

It remains unclear if the company will also halt holiday bonuses for employees in other countries, including Canada.

According to EY’s website, the accounting giant employs a global workforce of more than 298,000 people.

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WATCH: Employment lawyer Lior Samfiru breaks down everything employees need to know about bonus payments on an episode of the Employment Law Show.

Does my employer have to provide me with a holiday bonus?

In Canada, employers aren’t required to provide non-unionized workers with a holiday bonus.

Instead of giving staff a monetary gift or some time off, companies may throw a holiday office party to show their appreciation for all of their hard work throughout the year.

However, if your employment contract states that you are entitled to a holiday bonus each year, your employer must provide you with the compensation you are owed.

LEARN MORE
• Bonuses and severance pay: Your rights
• Employment Law Show: 5 key facts about employment contracts

My employer refuses to provide me with the holiday bonus I’m entitled to, what should I do?

If your employer is contractually obligated to provide you with a holiday bonus, and they don’t, contact an experienced employment lawyer at Samfiru Tumarkin LLP.

We can review your employment contract, enforce your workplace rights, and help you secure the money you are entitled to.

Even if your employment contract doesn’t specifically mention a holiday bonus, there are some situations where you could be owed additional compensation around the holidays.

• Example: A woman works for a manufacturing company in Calgary. While her employment contract doesn’t mention a holiday bonus, she has received $2,000 every year for the last five years during the holidays. A few days before she would usually receive her $2,000, her employer informed her that she wouldn’t this year. Following the conversation, she explained her situation to an employment lawyer. The lawyer helped her argue that this discretionary bonus had become a term of her employment. As a result, the company agreed to keep paying her $2,000 around the holidays.

Can my employer punish me if I ask for a holiday bonus?

Employers in Canada shouldn’t punish or threaten to punish non-unionized workers for requesting a holiday bonus.

If you are disciplined by your company after asking for a holiday bonus, and your employment contract states that you are entitled to one, contact an experienced employment lawyer at Samfiru Tumarkin LLP immediately.

We can help you secure the compensation you are entitled to and ensure that your workplace and human rights are properly enforced.

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My employer made major changes to my job after I asked for a holiday bonus, what should I do?

In Canada, non-unionized workers don’t have to accept significant changes to their employment. 

Large modifications such as a demotion, cut in pay, reduction in hours, or negative change to commission are illegal.

When substantial changes are made to your job without your consent, the law allows you to resign and seek full severance pay through a constructive dismissal claim.

If you believe that you have been constructively dismissed, don’t quit your job until you speak with an experienced employment lawyer at Samfiru Tumarkin LLP.

LEARN MORE
• Ontario and changes to your job
• Changes to your employment in Alberta
• Can your employer change your job in B.C.
• Do I get severance if I quit?

Can my employer fire me for asking for a holiday bonus?

Your employer can fire you if you ask for a holiday bonus. This is called a termination without cause.

In Canada, companies can let non-unionized employees go for any reason, as long as:

• They are provided full severance pay
• The reasons for their dismissal aren’t discriminatory

However, it’s very unlikely that your employer would be able to fire you for cause in this situation, which would mean no severance package or access to Employment Insurance (EI) benefits.

To justify dismissing you for cause, the company would have to prove:

• Progressive disciplinary measures were applied
• A less severe punishment would be insufficient

This type of termination is reserved for the worst kinds of workplace offences, such as theft or assault.

LEARN MORE
• How to calculate severance pay
• Severance for provincially regulated employees
• Rights to severance for federally regulated employees
• Severance pay in a recession

Lost your job? Speak with an employment lawyer

If you are fired or let go for any reason, or believe that your human rights have been violated, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Toronto, Ottawa, Calgary, and Vancouver can review your situation, enforce your rights, and help you secure the compensation you are owed.