See more Toronto Sun on Google — save as a Preferred Source

Bonuses are often used to motivate employees, reward performance, and encourage loyalty. But problems arise when employers delay payment or try to attach new conditions after the fact. Courts in Ontario have repeatedly made it clear: if a bonus is contractually owed, it must be paid on time.

CHAUDHRI: Delayed bonus payments can lead to major liability for employers Back to video

A recent Ontario Superior Court decision is a costly reminder of that principle. In Kirchmair v. EXP Global Inc., the court awarded an employee nearly $700,000 after finding that the employer’s repeated failure to pay bonuses amounted to constructive dismissal.

George Kirchmair sold his company to EXP Global Inc. and stayed on as a senior engineer for roughly seven years. During that time, he generated millions in revenue for the company. His employment agreement contained a clear bonus structure that set out exactly how bonuses would be calculated and when they were to be paid.

Despite this,........

© Edmonton Sun