Notice periods are trending upwards. One reason for this is that people are not necessarily retiring at 65 anymore, leading employers to struggle with how to exit the older employee for either declining performance reasons (real or perceived) or to simply make room for new talent.

As an example of the high-risk employers face when trying to push out an older worker without a fair package, in Dawe v. Equitable Life Insurance Company, 2018 ONSC 3130, the employee was awarded a 30 month notice period.  Mr. Dawe was terminated from his position as Senior Vice President of the Equitable Life Insurance Company at age 62.  Mr. Dawe had worked from Equitable Life and its predecessor company for 37 years. In his last year of work, Mr. Dawe earned a base salary of $249,000 and a STIP and LTIP bonus totalling $379,585. (We will cover the award for this bonus in a future post.)

Employment arrangements with different kinds of compensation are common and can present a lot of questions when it comes to a termination. In this post, we will look at how the law treats commissions.

Notice Pay

Readers of our blog will know by now that when an employee is terminated without cause they are entitled to notice. How much notice will depend on whether or not there is a contract, the age of the employee, the character of the employment, the length of time the employee worked with the employer, etc. We usually talk about notice in terms of number of months.