rate hikes have affected affordability, the job market is more competitive, and remote work is the norm for many organizations and industries. since employment prospects no longer depend on where you live, the market is flooded with young, highly educated, tech-forward millennial and generation-z prospects eager to start their professional lives after being starved of that opportunity for some time. they may live anywhere in the world, and they may find canadian salaries, or even half of what employers used to pay, very appealing.
but bonuses can backfire if not carefully managed. this is especially true in the public sector, where compensation is closely scrutinized both by employees and outsiders. missteps can lead to public outrage and internal discontent, as seen in the recent controversy involving the canadian broadcasting corporation (cbc).
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cbc’s decision to award $18.4 million in bonuses during a wave of layoffs sparked a public relations debacle. the broadcaster distributed bonuses to 1,194 employees, including over $3.3 million to 45 executives — averaging more than $73,000 per executive — surpassing the median family income in 2022.
constructive dismissal occurs when an employer unilaterally alters the terms of employment. while changes to compensation are by no means the only way in which a constructive dismissal might be established, it is the one we see most frequently. it should be no surprise that employees are quick to seek legal advice when their earnings are affected, so employers must navigate this terrain carefully by asking employees before changing bonus or commissions plans without their consent.
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howard levitt is senior partner of levitt llp, employment and labour lawyers with offices in ontario, alberta and british columbia. he practices employment law in eight provinces and is the author of six books, including the law of dismissal in canada. chase frazer is an associate at the firm.
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