Fast Facts about Bonus Payments | Employment Law Show TV – S6 E29

Episode Summary

FAST FACTS ABOUT BONUS PAYMENTS, employer withholding vacation pay, performance issues at work, and more on Season 6 Episode 29 of the Employment Law Show with employment lawyer Lior Samfiru, Partner at Samfiru Tumarkin LLP.

Watch above to discover your workplace rights and learn everything you need to know about employment law in Ontario, British Columbia, and Alberta, on the only employment law show on both TV and radio in Canada.

Episode Notes

Asked to return to the office after employee relocates

During the pandemic, I began working remotely and asked my employer if I would be able to relocate. My employer initially agreed but now wants me back into the office. What are my rights?

• Returning to the office: Employees who previously worked at the workplace before the pandemic in most cases must return to the office if their employer has requested they do so. It is important to remember that employees who need certain accommodations met by their employers must be given time to figure out childcare, other responsibilities, etc.
• New terms of employment: Employers who agree to let their employees work from home or in a hybrid arrangement cannot revoke the new terms of employment without an employee’s consent. Employees who are let go as a result of a refusal to come back to the office would be owed severance pay.

Learn more about employee rights when employers end remote work and recall staff in provinces like Ontario, Alberta and British Columbia.

Long-service employee terminated and given minimum severance

After 15 years at my company, I was terminated and offered a week’s worth of severance. How much time do I have to pursue my rights?

• Severance pay for longer service employees: Severance is based on a number of factors, including the age of an employee, the position and length of employment.
  • Learn more about severance pay:
    Severance in Alberta
    Severance packages in Ontario
    Severance entitlements in B.C
• Pursuing severance after termination: Employees have 2 years after the initial date of termination to pursue their severance entitlements and must bear in mind that this deadline is absolute.

Employer withholding pay due to financial hardships

My employer has said that due to financial difficulties and the business struggling my pay will be delayed. Can they do this?

• Withholding pay from an employee: Employees are fundamentally entitled to their wages and payment. Employers are not able to withhold payment on the date that it was agreed on as it is a complete violation of an employee’s rights. A reduction in wages or a failure to pay an employee’s salary can lead to constructive dismissal.
• Filing a complaint with the Ministry of Labour: While it is not generally advisable for employees who have been terminated to speak to the Ministry of Labour regarding their severance, they should and can speak to the Ministry regarding unpaid wages.

Fast facts about bonus payments

• When is a bonus considered discretionary: Despite what an employer has stated, that a bonus is considered discretionary, it is not considered discretionary if it is given every year and calculated in the same manner. By providing an annual bonus, employers have made the bonus a new term of employment.
• Severance packages must include bonus payments: Employers must include a bonus payment in an employee’s severance package. Employees who have been terminated before an annual bonus is paid are still entitled to the payment despite no longer being employed. Severance must include all components of an employee’s compensation including a bonus.
  
• Employment contracts can limit an employee’s rights to bonus pay: An employment contract can include provisions in a termination clause that limits an employee’s future entitlements. Many employers include this language in their employment contracts but it is rarely implemented accurately and is not enforceable.
• Refusal to pay a bonus leads to constructive dismissal: A constructive dismissal occurs if an employee’s wages have been significantly reduced. A refusal to pay out a bonus that was considered a significant part of an employee’s compensation can lead to a dismissal however it does not always occur. Employees have to consider the terms of the bonus plan and the amount of the bonus itself.

Toxic work environment created by management

A manager that I work under does not follow company policy at all, which has led to a toxic work environment. Can they do that?

• Workplace harassment and discrimination: All employees are entitled to a safe and harassment-free work environment. Employees who feel they are being bullied or harassed at work should first speak to the appropriate party within their workplace about the incidents.
  
• Investigations in the workplace: Employers have an obligation to investigate all claims of harassment and resolve the issue. A failure to properly investigate and resolve reports of abuse can lead to a constructive dismissal.

Reporting to a co-worker after performance issues

I’ve been asked to report to a co-worker after several issues with my performance were brought up. I feel the criticisms are inaccurate and unfair. What are my options?

• Demoted by an employer: Employees do not have to consent to or accept a demotion at the workplace. A demotion is considered a major change to the terms of employment and can lead to constructive dismissal.
• Performance improvement plans: Employees who feel they have been given inaccurate performance criticisms should convey their disapproval in writing but continue to follow the guidance given by their employers.

NEXT EPISODE: Employment Law Show S6 E30 – 5 mistakes employees should not make

PREVIOUS EPISODE: Employment Law Show S6 E28 – Five significant employment law terms