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ARTICLE · 04 DECEMBER 2017

A Cautionary Tale For Employers Drafting Discretionary Bonus Plans

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The plaintiff successfully claimed unpaid bonuses and bonus amounts owed over the contractual notice period of approximately $170,000.

CanadaEmployment and HR
Jennifer Fantini
Jennifer Fantini
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In the recent British Columbia Supreme Court decision of Kenny v. Weatherhaven Global Resources Ltd., 2017 BCSC 1335, the plaintiff successfully claimed unpaid bonuses and bonus amounts owed over the contractual notice period of approximately $170,000.

Background

Karl Kenny was employed by the defendant employer, Weatherhaven Global Resources Ltd. ("Weatherhaven") commencing in 2009, in a number of increasingly senior positions ending with the role of COO. At the time of his promotion to COO in 2013, the plaintiff signed a new employment agreement entitling him to an increased base salary of $265,000, and "Additional Compensation" as follows:

4.2. The Executive will be eligible to receive a minimum of 20% and up to 60% of the Base Salary annually, as a performance bonus (the "Bonus"), less applicable tax withholding required by law, based on the achievement of corporate objectives and personal objectives as mutually agreed by the Company and the Executive.

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