{"id":66000,"date":"2025-02-03T12:13:16","date_gmt":"2025-02-03T12:13:16","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/legal\/calculation-of-damages-for-lost-commissions\/"},"modified":"2025-02-03T12:13:16","modified_gmt":"2025-02-03T12:13:16","slug":"calculation-of-damages-for-lost-commissions","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=66000","title":{"rendered":"Calculation of Damages for Lost Commissions"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"post-body-7663195881851340623\" itemprop=\"description articleBody\">\n<div class=\"separator\" style=\"clear: both;\"><a href=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEiBXwZaM8Fb-d1hd0jLRvZw4j0t_Q3Vlvx-IehityR4U7TZv-_oROXZiGvOB2LFrGuaJNhSnjnm3kl6m5kAyeQYMiotnpTYn7MgB-j4wAS4LiPrFoPWFXkTjpTnBWg9B7GFH35PuzhHT32C1-7ib4oN7kIJ59Barw8Cc9zILwkmHQ3H7AWXqfp_k_UPG4No\/s1024\/Counting%20Money.png\" style=\"display: block; padding: 1em 0; text-align: center; \"><img decoding=\"async\" alt=\"\" border=\"0\" data-original-height=\"1024\" data-original-width=\"1024\" src=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEiBXwZaM8Fb-d1hd0jLRvZw4j0t_Q3Vlvx-IehityR4U7TZv-_oROXZiGvOB2LFrGuaJNhSnjnm3kl6m5kAyeQYMiotnpTYn7MgB-j4wAS4LiPrFoPWFXkTjpTnBWg9B7GFH35PuzhHT32C1-7ib4oN7kIJ59Barw8Cc9zILwkmHQ3H7AWXqfp_k_UPG4No\/s600\/Counting%20Money.png\" width=\"600\"\/><\/a><\/div>\n<p>How is commission income addressed when calculating severance under Ontario employment law?<\/p>\n<p>In <a href=\"https:\/\/canlii.ca\/t\/k8k18\" target=\"_blank\"><em><b>Shelp v. GoSecure Inc.<\/b><\/em>, 2025 ONSC 49<\/a>, the Honourable Justice Charles T. Hackland of the Ontario Superior Court of Justice sitting in Ottawa affirmed that \u201cit is common practice in the case law for courts to estimate a terminated employee\u2019s commission income based on averaging pre-termination earnings.\u201d<\/p>\n<p><a name=\"more\"\/><\/p>\n<p>In making this observation, Justice Hackland referenced the court\u2019s earlier decision in <a href=\"https:\/\/canlii.ca\/t\/hx759\" target=\"_blank\"><em>O\u2019Reilly v. Imax Corporation<\/em>, 2019 ONSC 342<\/a>.<\/p>\n<p>In <em>O\u2019Reilly<\/em>, aff\u2019d 2019 ONCA 991, Justice Faieta provided the following statement of law concerning awards of damages for a lost opportunity to earn commissions:<\/p>\n<blockquote class=\"tr_bq\">\n<p>[43] <b>The award of damages for a lost opportunity to earn commissions should reflect the amount of commissions that the employee would likely have received during the reasonable notice period<\/b>.  Often the measure of such lost opportunity is the employee&#8217;s average annual earnings in the three-year period prior to dismissal.  However, if the employee\u2019s commission income was increasing or decreasing in the period prior to dismissal, the court may find that it is appropriate to take into account only the employee\u2019s most recent earnings.\n<\/p>\n<\/blockquote>\n<p>Justice Faieta\u2019s authority for such statement of law was the 2008 decision of the Court of Appeal for Ontario in <a href=\"https:\/\/canlii.ca\/t\/20zdz\" target=\"_blank\"><em>Clark v. BMO Nesbitt Burns Inc.<\/em>, 2008 ONCA 663<\/a>, especially at paragraphs 35-37. <\/p>\n<p><h3>Contact Me<\/h3>\n<\/p>\n<div class=\"separator\" style=\"clear: both;\"><a href=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEhHJv6HbeVH5NpwzHnIRfBjzFGk4L_6R5-tWfJ6oM20ra7Npmq-2SE5NnQVCznWyYaaKOER4Kr0LhdtqVU38nZKKCIopi3M6fxFCqmCXyzC39ON8P5gYfX4dyVaOElpZtfWoMpfZEeSRL0AnKhFYnxS5VGWzisyH5CAnKoFCDY0coMu7w1eZCM3N-q-fULi\/s1358\/Sean%20Bawden%20logo%20black.png\" style=\"display: block; padding: 1em 0; text-align: center; \"><img decoding=\"async\" alt=\"\" border=\"0\" data-original-height=\"376\" data-original-width=\"1358\" src=\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEhHJv6HbeVH5NpwzHnIRfBjzFGk4L_6R5-tWfJ6oM20ra7Npmq-2SE5NnQVCznWyYaaKOER4Kr0LhdtqVU38nZKKCIopi3M6fxFCqmCXyzC39ON8P5gYfX4dyVaOElpZtfWoMpfZEeSRL0AnKhFYnxS5VGWzisyH5CAnKoFCDY0coMu7w1eZCM3N-q-fULi\/s320\/Sean%20Bawden%20logo%20black.png\" width=\"320\"\/><\/a><\/div>\n<p><a href=\"http:\/\/www.kellysantini.com\/team\/e\/team-Sean-Bawden.php\" target=\"_blank\">Sean Bawden<\/a> is Experience. At Work.<\/p>\n<p>I am an experienced employment lawyer and wrongful dismissal lawyer practicing with Kelly Santini LLP, which is based in Ottawa. I have appeared, in-person, in courtrooms all across Ontario from Stratford, to L\u2019Orignal, to Thunder Bay.<\/p>\n<p>For 2.5 years I was in-house legal counsel providing employment law advice to one of Canada\u2019s largest corporations and appeared in labour courts and tribunals literally the world over.<\/p>\n<p>I have also been a part-time professor at Algonquin College and have taught Employment Law, Trial Advocacy for Paralegals, and Small Claims Court Practice.<\/p>\n<p>\n<b>I can be reached by email at <a href=\"https:\/\/www.ottawaemploymentlaw.com\/2025\/01\/mailto:sbawden@kellysantini.com\">sbawden@kellysantini.com<\/a> or by phone at 613.238.6321 x233.<\/b><\/p>\n<p><!-- Begin Mailchimp Signup Form -->\n<link href=\"https:\/\/cdn-images.mailchimp.com\/embedcode\/classic-10_7.css\" rel=\"stylesheet\" type=\"text\/css\"\/>\n<p><!--End mc_embed_signup--><\/p>\n<p>&#8212;<\/p>\n<p><em>As always, everyone\u2019s situation is different. The above is not intended to be legal advice for any particular situation. It is always prudent to seek professional legal advice before making any decisions with respect to your own case.<\/em>\n<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>How is commission income addressed when calculating severance under Ontario employment law? In Shelp v. GoSecure Inc., 2025 ONSC 49, the Honourable Justice Charles T. Hackland of the Ontario Superior Court of Justice sitting in Ottawa affirmed that \u201cit is common practice in the case law for courts to estimate a terminated employee\u2019s commission income [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":66001,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[97],"tags":[14100,18901,20947,5516],"dealstore":[],"offerexpiration":[],"class_list":["post-66000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal","tag-calculation","tag-commissions","tag-damages","tag-lost"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Calculation of Damages for Lost Commissions - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=66000\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Calculation of Damages for Lost Commissions - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"How is commission income addressed when calculating severance under Ontario employment law? 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