Demystifying Bonuses, RSUs, and Stock Options Upon Termination in Ontario
Fired in Ontario? Discover how to protect your severance pay and fight wrongful dismissal when your employer tries to cancel your RSUs, stock options, and cash bonuses. Learn how to beat the "active employment" trap and use the latest employment law to negotiate the severance package you deserve. In the world of corporate terminations, your base salary is often just the tip of the iceberg. The real financial battleground lies in variable compensation, including cash bonuses, stock options, and Restricted Stock Units (RSUs). Employers will frequently claim that you forfeit these incentives because you are no longer "actively employed". However, this is often a multi-million-dollar legal myth.
In this video, we take a forensic look at how Ontario courts treat Performance Incentive Plans (PIPs) during your severance period. What you will learn in this video:
• Formulaic vs. Discretionary Bonuses: Formulaic bonuses tied to specific metrics are considered wages under the Employment Standards Act (ESA). Discretionary bonuses are heavily scrutinized by courts using the "Integral Part of Compensation" test.
• The "Active Employment" Trap: The Supreme Court of Canada's landmark decision in Matthews v. Ocean Nutrition Canada Ltd. established that employees are legally deemed "actively employed" throughout their entire reasonable notice period. • The Great Equity Divide: Discover why the legal treatment of RSUs is currently experiencing a massive judicial earthquake in Ontario courts, with conflicting decisions like Wigdor and Liggett.
• Negotiation Leverage: Learn strategies to use this legal uncertainty to your advantage, such as calling the employer's bluff or negotiating for "cash-in-lieu". Never assume your employer's interpretation of your incentive plan is the final legal word. If you have been terminated, consult an experienced employment law firm before signing a release.
Don't guess about your rights. Listen now to understand the strategy behind the jargon.
Learn More by reading the full article at https://www.htwlaw.ca/post/bonuses-rsus-stock-options-termination-ontario
Contact us for a free No-Obligation Lawyer consultation at (647) 849-6582 or email us at [email protected] or learn more about various issues on employment law free of charge at www.htwlaw.ca
Video Podcast = https://www.youtube.com/playlist?list=PLNZN6hlImSnbQp8yHfh_VWbWtDJ1qhOfj Spotify Audio Podcast = https://open.spotify.com/show/1hXtx9hciThI3ikv62MYFD Apple Podcast = https://podcasts.apple.com/us/podcast/employment-law-insights/id1873876475