Movie studio’s one-time bonus left out of B.C. court’s award

MGM employee had no automatic entitlement to bonus, and therefore court refused to tack it on to damages in case that outlines when a court will consider a bonus to be an integral part of compensation
|Canadian Employment Law Today

Karen Zeidel started working in November 2002 as a sales representative for Metro-Goldwyn-Mayer Studios Inc. (MGM). The employment contract was partly written and partly oral. It did not stipulate terms of the termination of employment. She was paid $130,400 in 2003 which included a $700 per month car allowance and a bonus of $15,560.

In court Zeidel and MGM disputed what the bonus structure attached to her employment was, but the court concluded that whichever it was Zeidel would not have been entitled to it based on her 2003 sales performance.

She did, however, receive it as did all other senior members of the Canadian sales team in 2003, none of whom had achieved their sales targets.