In New Brunswick, unpaid commissions and bonuses that were fully earned before your termination are legally considered ‘wages’ under the Employment Standards Act. If an employer withholds these funds, you can file a free wage claim with the province or pursue legal action in the Court of King’s Bench.
Losing your job is a stressful experience, but the situation becomes deeply unfair when a former employer refuses to pay you the money you have already earned. In New Brunswick, many professionals-from real estate agents in Moncton to software sales representatives in Fredericton-rely heavily on commissions and performance bonuses as a major part of their income.
A common, yet entirely illegal, tactic used by some companies is to claim that because you are no longer employed on the date the bonus is traditionally paid out, you forfeit your right to it. 🔍 Canadian employment law looks closely at whether the commission or bonus was an integral part of your compensation package or purely discretionary. If you completed the work that generated the sale before you were fired, you are generally entitled to that money. Consulting an employment lawyer can help clarify your rights based on your specific contract.
Step-by-Step Process in New Brunswick
Recovering unpaid commissions requires a strategic approach. You must prove that the money was earned according to the terms of your employment. Follow these structured steps to build your case.
Step 1: Review Your Employment Contract
The first place to look is your original employment agreement or the company’s official compensation policy. You are looking for clauses that define exactly when a commission is considered “earned.” 📝 For example, does the policy state a commission is earned when the client signs the contract, or only after the client pays the final invoice? If the trigger event happened before your termination, the money is legally yours.
Step 2: Gather Documentary Evidence
Before you lose access to your corporate accounts, gather as much evidence as possible. Secure copies of your sales logs, client contracts, performance reviews, and email correspondence praising your closed deals. This documentation is critical to prove to a judge or government officer that the sales were finalized under your watch.
Step 3: Send a Formal Demand Letter
Often, a stern letter from an employment lawyer is enough to force a company to pay. A demand letter formally notifies your former New Brunswick employer that they are in breach of the Employment Standards Act by withholding your final wages. 📧 The letter will set a strict deadline (e.g., 7 days) for the company to transfer the outstanding commissions before legal action is taken.
Step 4: File a Provincial Wage Claim
If the demand letter is ignored, you can file a free complaint with the New Brunswick Employment Standards Branch. A provincial officer will investigate the withheld commissions. If they determine the money meets the legal definition of wages, they can issue an official order to the employer forcing them to pay you.
Step 5: Pursue Civil Litigation
The Employment Standards Branch is excellent, but they have limits. If your claim is highly complex or involves a massive sum of money (like a massive corporate bonus), you may need to file a civil lawsuit. 👮 Claims under $20,000 CAD can be handled in Small Claims Court, while larger amounts must be pursued in the Court of King’s Bench of New Brunswick.
How Much Does it Cost in New Brunswick?
The cost of recovering your money depends entirely on the route you choose to take. Government services are free, while private litigation carries costs.
| Action / Legal Route | Estimated Cost (CAD) |
|---|---|
| Employment Standards Branch Claim | $0 (Completely Free) |
| Lawyer Consultation & Demand Letter | $250 – $600+ |
| Small Claims Court Filing Fee | $50 – $100 |
| Court of King’s Bench Litigation | Usually handled on a contingency fee (e.g., 30% of winnings) |
Many employment lawyers in New Brunswick offer contingency fee agreements for strong wrongful dismissal and unpaid wage cases, meaning you do not pay them unless they successfully recover your money. 💰
How Long Does the Process Take?
Under the law, an employer must pay all final wages no later than the next regular pay day following your termination. If they refuse, filing a claim with the Employment Standards Branch typically initiates an investigation that lasts 3 to 6 months. If your case goes to civil court, the litigation process can drag on for 1 to 2 years.
Frequently Asked Questions (FAQ)
What is the difference between a discretionary and non-discretionary bonus?
A non-discretionary bonus is tied to a specific metric (e.g., selling 10 cars = $1,000 bonus). You are legally owed this. A discretionary bonus is completely up to the boss’s mood (e.g., a year-end holiday gift) and is much harder to recover legally.
Do I still get my commissions if I quit my job?
Yes. Whether you are fired, laid off, or resign voluntarily, you are legally entitled to receive all wages and commissions you successfully earned up until your very last day of work.
Is there a time limit to file a wage claim?
Yes. In New Brunswick, you generally have a strict 12-month window from the date the wages were supposed to be paid to file a complaint with the Employment Standards Branch. Do not delay your claim.
Can they withhold my commission if the client asks for a refund later?
This depends strictly on your written employment contract. If your contract states commissions are subject to ‘clawbacks’ if a client cancels within 90 days, the employer might legally adjust your final payout. If no contract exists, they generally cannot.
Can my employer deduct money for a company laptop I didn’t return?
No. Under New Brunswick law, an employer cannot simply deduct the cost of unreturned equipment from your final pay cheque without written consent. They must pay you your wages and sue you separately for the equipment.
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