Why Clarity in Compensation Policies Can Save Your Business Millions

As an HR Consultant and former labour and employment lawyer, I can’t stress this enough: clarity in your employment and compensation policies isn’t optional—it’s essential. A recent case from the Ontario Court of Appeal serves as a costly reminder of what can happen when policies are vague or poorly communicated.

In Boyer v. Callidus Capital Corporation, the employer was ordered to pay a former employee over $1.5 million in lost compensation—vacation pay, bonuses, and stock options. Why? Because they failed to clearly communicate their internal policies and didn’t get the employee’s agreement to changes that affected his pay.

The plaintiff worked under a largely verbal agreement and claimed he was never told about:

• A “use-it-or-lose-it” vacation policy

• Changes to bonus eligibility

• Modifications to stock option entitlements upon retirement

Despite appealing the initial decision, the employer lost again at the Court of Appeal. The Court confirmed that unless an employee is clearly informed of compensation-related changes and agrees to them, those changes likely won’t be enforceable.

Key Takeaways for Employers:

• Put it in writing: Avoid reliance on verbal agreements. Written contracts protect both parties.

• Communicate policy changes clearly: Email updates aren’t enough. Document the changes and get employee acknowledgment.

• Get consent to changes: For any changes to core terms of employment—especially those affecting pay—get express, written agreement.

This ruling is a win for clarity—and a wake-up call for employers.

If your employment contracts or compensation policies haven’t been reviewed recently, now’s the time. Reach out for a compliance review to avoid unnecessary legal exposure.

📩 Contact me at for a free consultation.