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ARTICLE · 15 NOVEMBER 2017

Bonus Claims: Past Practice Gets A Boost

McMillan LLP
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Craig Cunningham was an accomplished senior executive who was dismissed without cause after eight years service.

CanadaEmployment and HR
McMillan LLP
McMillan LLP
Martin Thompson
Martin Thompson
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In many executive terminations, counsel operate under the flawed assumption that a lack of clear termination wording automatically results in a bonus obligation during the notice period. The recent Ontario decision in Cunningham v Design Filtration Microzone Inc., 2017 ONSC 5486 confirms that a more careful review of past practice may deny so-called "notice period bonus" claims. 

Craig Cunningham was an accomplished senior executive who was dismissed without cause after eight years service. He brought a wrongful dismissal case and was ultimately awarded 12 months notice. 

A contentious issue in the case was Cunningham's claim for bonus, which had two elements: bonus during year of termination, and bonus during the notice period.

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