The high cost of golden handcuffs

Walking away not a viable option for most long-tenured workers
By Todd Humber
|Canadian HR Reporter|Last Updated: 02/06/2017

Breaking up is hard to do. But leaving a job, well that’s just plain complicated.

Terminations and resignations carry their fair share of headaches for employers and employees alike. I was reminded of that this morning when looking at the cover of this issue of Canadian HR Reporter and flipping through the Globe & Mail.

First, this publication — editor Sarah Dobson looked at the court ruling in Styles which put long-term incentive plans (LTIP) and what happens to bonuses upon termination in the spotlight. In 2015, an Alberta worker was awarded nearly $450,000 after being dismissed without cause. That ruling hinged on three words in the contract — they stated the LTIP bonus “may” be forfeited if the employee was terminated.