Right to Termination Bonus – Employment Lawyers

An employee dismissed without cause is generally entitled to non-discretionary bonuses during the notice period. This is based on the approach of common law damages which puts the employee back in the position they would have been in, had they not been wrongfully dismissed. Therefore, employees can seek payment of their bonuses (and other similar benefits) over the notice period if there is no clear language in the employment contract limiting their entitlement.

Furthermore, employees are generally entitled to their bonus if the bonus formed an “integral” or significant part of their compensation as opposed to something that was deemed to be “discretionary.” To make this determination, courts will consider the following factors:

• • whether the bonuses formed a significant proportion of the employee’s full compensation;
  • how consistent was the employer in awarding the employee with bonuses which are determined upon reviewing the history of bonuses awarded to the employee.

Are you trying to assess the bonus provision of your employment agreement? Have you been terminated from your employment and are owed bonuses? In either scenario, one of our experienced lawyers can help you understand your legal entitlement to bonuses.