Lack of Clarity on Discretionary Payments Benefited Terminated Employee
Written by Daniel Standing LL.B., Editor, First Reference
In Thoma v Schaefer Elevator Components Inc., 2019 BCSC 100 (CanLII), the British Columbia Supreme Court re-affirms the need for employers to establish and communicate clear and explicit rules when discretionary bonuses form part of an organization’s compensation scheme. These rules should regulate an employee’s entitlement to bonus payments (both during employment and during a notice period), as well as the eligibility criteria and how and when payments are to be made. This case shows how a lack of clarity in this respect can expose an employer to significant financial liability, . . . [more]
