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ARTICLE · 13 SEPTEMBER 2016

Terminated Employee Entitled To Bonus Payments

An employee in Ontario was awarded bonus payments for the applicable reasonable notice period following a without cause termination despite the bonus plan's express terms...

CanadaEmployment and HR

Paquette v. TeraGo Networks Inc., 2016 ONCA 618

An employee in Ontario was awarded bonus payments for the applicable reasonable notice period following a without cause termination despite the bonus plan's express terms that personal and company objectives must be met and the employee must be actively employed.

Paquette was terminated without just cause from his employment as Director, Billing and Operations Support Services for TeraGo Networks Inc. He had been employed with TeraGo for approximately 14 years and he was 49 years old at the time of his dismissal. There was no contract of employment governing his notice period so the trial judge determined that 17 months would be the applicable period pursuant to the common law. Paquette was awarded damages for his salary and benefits for that time, but the trial judge concluded that Paquette would not be entitled to bonus payments that would become due during the notice period because he would not be actively

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