What criteria must an employer apply when awarding a discretionary bonus?

Ontario, Canada


The following excerpt is from Wolfman v. Rocktenn-Container Canada, L.P., 2015 ONSC 1432 (CanLII):

The plaintiff relies upon Mathieson v. Scotia Capital Inc.[4] for the proposition that when awarding discretionary bonuses an employer must apply fair and reasonable criteria in a fair and reasonable process. In that context an employer may change bonus criteria from year to year and is entitled to place greater weight on certain criteria based on business judgment, changing market conditions, public policy and view amongst experts in the filed as to how to best award this form of compensation. The court stated at para. 58: What is important in terms of fairness, is that the criteria each year are reasonable, that they are communicated to the employees and that they are applied “consistently among employees” …

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