Employment lawyer Sunira Chaudhri addresses frequent employment law questions from the first half of 2026, covering for-cause termination, bonus rights, settlement letters, and return-to-office policies.
For-Cause Termination Requires High Bar
An executive terminated for cause without warnings or investigation is unlikely to face a valid cause claim. Chaudhri explains that cause is the "capital punishment" of employment law, requiring strong, credible evidence. Poor performance rarely meets this standard unless the employer set clear expectations, provided written warnings, offered a chance to improve, and stated the job was at risk. Without these steps, the termination is likely not for cause, and the employee is owed a payout.
Bonus Entitlement After Termination
If a termination letter states no bonus is owed, the answer depends on the employment agreement or bonus plan. Chaudhri notes that if the bonus is an integral part of compensation, it is generally owed over the notice period. Clauses requiring "active employment" on the payout date are often insufficient to deny the bonus, as the law treats the employee as still employed during notice. Employers who assume the bonus vanishes on termination often make an expensive mistake.
Settlement Letters and ESA Minimums
Employers cannot withhold statutory minimums under the Employment Standards Act (ESA) as leverage for signing a release. Termination pay and severance pay are owed regardless. A release can only buy additional money above the minimums. Employees should never sign away the right to pursue common-law severance for what the law already guarantees. Settlement letters often offer near-statutory minimums, which may be far below what common law provides based on age, service, position, and job market.
Return-to-Office Policy and Pre-Approved Vacation
An employer is not legally required to reimburse cancellation costs for a pre-approved vacation that conflicts with a new return-to-office policy. Chaudhri advises that once vacation is approved and booked, rescinding it could support a constructive dismissal claim. The safest approach is to honour approved vacation before implementing the new policy. Employees should ask for reimbursement, but there is no guarantee.
Chaudhri, along with associate Samantha Khaouli, will continue to monitor employment law trends and answer reader questions.
