Poorly worded bonus plan costs employer

Former Mercer Human Resources Consulting employee gets an additional $18,000 bonus
|Canadian Employment Law Today

When it comes to law, the written word matters. And the written words in the incentive compensation plan at Mercer Human Resources Consulting were, as candidly admitted by the company’s counsel, “not ideal.”

In fact, an Ontario court awarded a former consultant at Mercer, who was terminated without cause, an additional $18,000 because the wording of the plan left the door open for employees to collect it during the notice period.

Dennis Schettler was a consultant in Mercer’s administration practice. He was terminated without cause on Nov. 13, 2000. He was offered a severance package consisting of continuation of salary and some benefits for a period of 16 months.