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Do I have to pay out benefits and bonuses during the notice period?

The short answer is yes. While provinces have different legislation, some such as Ontario require benefits for example to be continued during the notice period as part of employment standards law. There is also nationwide case law on bonuses that states that bonuses generally have to be paid out through the notice period unless there is clear and explicit wording to the contrary. Learn more about that here. 

On the whole though, judge-made law states that an employer is responsible for ‘keeping the employee whole’ throughout the notice period. Broadly speaking that includes continuation of their extended benefits, payout of their bonus over the notice period, and compensation for anything else they would have otherwise earned such as a car allowance, phone allowance, gym membership, etc. If an employee does file a wrongful termination claim then these are generally items their lawyer will seek to have compensated, and a negotiated settlement will likely take them into consideration. 

Employment Lawyers - Rudner Law
Alternative Dispute Resolution Rudner Law

Rudner Law
15 Allstate Parkway
Suite 600
Markham, ON
L3R 5B4

Phone: 416-864-8500
Text: 416-864-8500


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