Primer about bonus payments for employees | Employment Law Show TV – S8 E19

Episode Summary

PRIMER ABOUT BONUS PAYMENTS, wages reduced after a layoff, taking disability leave due to harassment and more on Season 8 Episode 19 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 about employment law in Alberta, Ontario and British Columbia, on the only employment law show on both TV and radio in Canada.

Episode Notes

Pressured to return to work from disability leave

I was on disability leave for about a year and a half. My insurer decided I was ready to return to work, even though I was still unable. Once my employer heard about this they also expected me to return. If I didn’t it would be considered job abandonment. What can I do here?

• Disability benefits and employment: Employees on disability leave can have their benefits preemptively cut off by their insurers. Despite this, if they are still unable to work, they should listen to the advice of their treating doctors. Employees cannot be terminated due to taking a medical leave or considered to have resigned.
  

Wages reduced after layoff recall

I’ve worked for my company for almost 22 years. I was laid off and then brought back by a new owner, earning a decent wage. Now I’m being let go again and was only offered 2 months of salary.

• Layoffs and employee rights: In most cases, employees who have had a minor gap in employment, such as a temporary layoff, must still have their previous years of service acknowledged. Severance payments would have to encompass the entirety of employment, as well as the age and position of an employee. Employees should consider the manner of their return from a layoff to protect their rights.
  • Learn more about severance pay
    • Severance in Alberta
    • Severance packages in Ontario
    • Severance entitlements in B.C

Previous years of employment not acknowledged

I’m a truck driver. My company was purchased a few years ago by another company. I was recently asked to sign a yearly review and noticed my previous years of service with the former owner were not included.

• New ownership of the company: In the event of a sale of a business, new ownership can decide whether to keep the previous employees or not. Employees who continue to work under a new employer should ensure their previous years of service are retained. Employees should be wary of signing a new employment agreement after new ownership takes place.

Repeated fixed-term contracts

If an individual started on a fixed-term contract and has worked there for many years, are they obligated to keep signing a new contract if asked? Is there a downside to refusing to sign if the company still employs them?

• Employment contracts and severance: Individuals who have signed multiple fixed-term contracts and refuse to sign yet another, may be let go by their employer. After many contract agreements, however, it is possible the individuals would be considered regular employees and owed severance pay.

A primer about bonus payments for employees

• Revoking or eliminating a bonus payment: A bonus payment that has been revoked could potentially lead to a constructive dismissal. This would occur if a bonus is considered a significant and consistent element of an employee’s compensation.
  
• Tired or terminated: Despite termination of employment, many individuals are still owed their bonus payment as part of their severance package. Employers often mistakenly believe letting an employee go before a bonus is given will exempt them from receiving it.
• Severance package inclusions: Severance pay must include all elements of an employee’s compensation, including bonuses and commissions. A refusal to include a bonus could lead to wrongful dismissal.
• Employment contract limitations: Employees should look closely at the terms of their employment contracts. Employment agreements can often limit an employee’s entitlements

On LTD after harassment at work

I was employed for 6 years in the sales department. At 45, a manager constantly bullied me, and HR refused to investigate. I am now on disability leave with medical support stating I am unable to work. If I quit, I have no severance pay. What can I do?

• Harassment in the workplace: Employees who feel they have no choice but to resign due to harassment can consider their employment terminated, and could be owed severance. All employees are entitled to work in a safe workplace. Harassment complaints must be investigated by employers and adequately resolved. Failure to do so could lead to additional legal consequences for employers.
  

Early termination after giving resignation notice

I’m 61 years old and have been employed with my company for 6 years. My job is very unique to the company. I plan to give my resignation notice months in advance. I’m worried this might lead to an early termination. If this happens, am I still owed severance?

• Giving notice of resignation: Generally, an employee who has given notice of resignation if let go before the end date, must be given the balance in severance pay by their employer. Employers cannot avoid paying an employee severance under these circumstances. Employees should also remember that a resignation must be voluntary and without external pressure.

Employment Rights

• Severance based on the size of a company: It is a common misconception that the size of a company is a determining factor in severance pay. Severance for an employee in a small business as opposed to a large company is calculated in the same manner.
• Accepting a demotion: A demotion could lead to a constructive dismissal even if there is no reduction in pay as it can still lead to damaging an employee’s career prospects.
• Providing medical information to your employer: Employees do not have to provide personal medical information to their employers if taking a medical leave. Employers are within their rights to request a prognosis from their employees, but not a diagnosis.
• Hiring a younger employee: Employees let go due to their age could pursue a human rights violation. Discrimination based on age could lead to significant legal consequences for employers.
• Providing a written contract: It is in an employee’s best interest not to have a formal written employment contract. Employment agreements typically protect the interests of an employer.
• Severance and resignations: Employees who have voluntarily resigned from their positions without external pressure are not owed severance pay.

PREVIOUS EPISODE: Employment Law Show S8 E18 – What to know about wrongful dismissals