In Andros v Colliers Macauley Nicolls Inc, the
Ontario Court of Appeal recently addressed the issue of whether a
wrongfully dismissed employee is eligible to receive a payment in
lieu of bonus throughout the common law notice period.
If the bonus is non-discretionary and an integral part of the
employee's compensation package, damages for wrongful dismissal
include bonuses earned in the year of termination, on a pro-rata
basis, plus a payment in lieu of bonus throughout the common law
notice period.
In this case, the respondent worked for the appellant, a large
commercial real estate company. He left for other employment,
however he returned and was promoted to the position of Managing
Director, which included a base salary and a yearly bonus. In the
last three years of his employment his base salary was $142,500 and
his bonuses were $79,228.25, $127,933.80 and $49,757.51
respectively.
