Are Bonuses Really Just "Bonuses"? A Look At Whether Bonuses Are Payable Post-Termination

With the waves of layoffs and terminations this year, a question asked frequently by employers and employees alike is, "Are employees entitled to their share of bonuses for the time they worked prior to their termination?"

Many employees in Alberta have arrangements where bonuses (and other forms of incentive compensation, such as stock options and share units) form a significant part of their total compensation. A departing employee may be giving up a considerable sum if the termination of employment means forfeiting bonuses for the period he or she actively worked prior to the termination notice. It is a crucial question for all affected and, unfortunately, one that is consistently disputed between employers and employees.