Court Awards Commission During Notice Period But Not Beyond:

In Kraft v Firepower Financial Corp ( 2021 ONSC 4962) Justice Morgan had a somewhat unique situation.

It was not disputed that on two different transactions the Plaintiff salesman had done everything that was expected of him up to his termination date and the only issue was whether the transaction would actually close and thus the Defendant would receive the sale proceeds. On of the closings took place within the 10 month notice period and one had not closed within the 10 months nor by the date of the hearing.

The Judge awarded the Plaintiff his commission for the first transaction but not for the second one ..

This is what he said :

[26] On the other hand, I am not prepared to award the Plaintiff commission on the Schure Sports deal if and when it ever closes. The Plaintiff’s notice period has come and gone, and his entitlement to wages – whether salary, bonus, commission, or other incentive payment – does not go on forever.

[27] The notice period defines the time frame after which both the employee and the employer must put the employee’s wages flowing from his termination behind them. Otherwise, an employer and employee would be tied to each other indefinitely. I am of the view that a judgment in a case like this should bring finality to the issues between the parties.

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