Mortgage advisors are key contributors to the financial sector, helping Canadians navigate the complexities of mortgages and financial planning. However, as commission employees, their unique compensation structures often present challenges, particularly in cases of termination and severance pay.
Unique Challenges for Commission Employees in the Mortgage Industry
Mortgage advisors often earn a significant portion of their income through commissions and bonuses. When terminated, disputes may arise over whether commissions should be included in severance pay. Under Canadian employment law, commissions are considered a regular part of an employee’s income and must be factored into severance calculations.
In addition to disputes over income, mortgage advisors face other challenges, including:
- Non-standard schedules: Irregular working hours that may not align with traditional 9-to-5 roles.
- Fluctuating income: Earnings that depend on market conditions and performance.
- Complex employment agreements: Contracts that often include detailed clauses regarding compensation, non-compete agreements, and job responsibilities.
These factors can make severance negotiations and entitlement assessments more complex.
What Mortgage Advisors Are Entitled to in Severance
Under Canadian employment law, mortgage advisors are entitled to severance pay based on the following key factors:
- Length of Service: The longer you’ve worked for an employer, the more severance you are likely entitled to.
- Age: Older employees may be entitled to more severance due to difficulties in finding comparable employment.
- Position: Senior mortgage advisors or those with specialized skills may receive higher severance packages.
- Income Structure: Severance must include all components of income, including commissions, bonuses, and benefits.
Employers sometimes attempt to exclude commissions and bonuses from severance packages, resulting in offers that are far below what employees are legally entitled to. Ensuring these offers are reviewed by an employment lawyer is crucial.
Common Issues Mortgage Advisors Face During Termination
Mortgage advisors often encounter specific issues when terminated, such as:
- Disputes Over Commissions and Bonuses: Employers may argue that commissions and bonuses are not part of severance, even though they are integral components of income.
- Improper Termination Classifications: Employers may frame a termination as a “resignation” or “mutual separation” to avoid paying severance.
- Insufficient Notice Periods: Termination notice periods provided by employers may be far shorter than what is legally required under Canadian employment law.
- Non-Compete and Non-Solicitation Clauses: In Ontario, as of October 2021, most non-compete agreements are prohibited under Ontario law, with certain exceptions (e.g., for senior executives). Non-solicitation clauses (restricting contacting former clients) are still enforceable if they are reasonable in scope and duration. Learn more about non-compete and non-solicitation clauses.
These tactics can leave employees with far less compensation than they deserve. Legal representation can help ensure entitlements are maximized.
Wrongful Dismissal for Mortgage Advisors
If your termination does not meet the standards set by Canadian employment law, you may have grounds for a wrongful dismissal claim. Common examples include:
- Excluding commissions and bonuses from severance calculations.
- Misclassifying terminations to avoid paying severance.
- Imposing unreasonable restrictions on future employment through non-compete clauses.
Mortgage advisors who suspect wrongful dismissal should consult with an employment lawyer to protect their rights and pursue appropriate compensation.
How Monkhouse Law Can Help
At Monkhouse Law, we specialize in employment law and have extensive experience assisting commission employees, including mortgage advisors, in securing fair severance packages and resolving disputes. Our services include:
- Free 30-Minute Consultation: An opportunity to assess your case and discuss your options.
- Severance Package Review and Negotiation: Ensuring all aspects of your compensation—including commissions and bonuses—are factored into your severance.
- Representation in Wrongful Dismissal Claims: Advocating for your rights and maximizing your compensation.
Contact Us for a Free Consultation
If you are a mortgage advisor facing termination, understanding your legal rights is crucial. Many severance packages fail to properly account for commissions, bonuses, or other compensation components, leaving employees with less than they deserve.
Schedule a free 30-minute consultation with Monkhouse Law today to learn more about your rights and secure the compensation you are entitled to under Canadian employment law. Let us help you protect your future career.
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