It is quite common for employers to offer a bonus or incentive payment as part of a worker’s compensation. Bonuses serve a useful dual function – incentivizing individuals to perform their duties well and then rewarding achievement of the same.

Many Ontario employees receive some form of bonus payment as part of their total compensation. In a recent decision from the Ontario Court of Appeal, Paquette v. TeraGo Networks Inc., the Court provided clarity around the circumstances in which an employee will be entitled to receive bonus payments as part of their severance during the applicable notice period.