Bonus entitlement during reasonable notice period

2 Ontario cases show differing circumstances where bonuses can and don’t have to be paid to terminated employees

Employers recognize an employee dismissed without cause is entitled to notice of dismissal or pay in lieu thereof. What many employers don't realize is that under statute and common law, the employee is entitled to any bonus during the applicable period of notice as if she had continued to work – the principle being the employee should be put in the same position she would have been had she continued to work to the end of the notice period. However, this principle can be modified through contractual terms.

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