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Commission Based Jobs and Employment Law
If you’re in a commission-based job in Ontario and your employer hasn’t paid you what you’re owed, you’re not alone, and you’re not powerless. Whether you were let go, resigned, or are still working, the law in Ontario treats commissions as wages. That means if you’ve earned them, you’re entitled to be paid.
This article explains your rights, how commission agreements work, and how the courts treat unpaid commissions after termination or resignation. We also cover a recent Ontario case that sheds light on what happens when your employer doesn’t get it right.
Are Commissions Considered Wages in Ontario?
Yes. Under Ontario’s Employment Standards Act (ESA), commissions are considered wages. That means once earned, they must be paid in full, on time, and without delay, even if your employer disagrees or attempts to rely on an employment contract clause that says otherwise.
What Should Be in a Commission Agreement?
A Commission Agreement should clearly explain:
- How commissions are calculated
- When commissions are earned and payable
any limits or conditions on commission payments - What happens to commissions after resignation or termination
But even the best Commission Agreement cannot override your rights under the ESA. If a clause tries to limit or deny commissions you’ve earned, it may be unenforceable.
As Christopher Achkar, employment lawyer and founder of Achkar Law, explains:
“Commission-based employees often face unique challenges when it comes to pay, termination, and contract rights. If you’re unsure whether your employer is treating you fairly, speaking to a lawyer can help you protect what you’ve earned and clarify your legal options.”
Unpaid Commission After Termination
If you’re terminated, your employer must:
Provide reasonable notice (or pay in lieu)
Continue all compensation, including commission, throughout the notice period
Respect ESA section 60(1), which prohibits reducing wages or altering terms of employment during notice
Case Spotlight: O’Reilly v Imax Corporation
The Ontario Court of Appeal upheld a trial award of commissions earned up to termination plus average commissions during the reasonable notice period. The employer’s argument that commissions ended at termination didn’t hold up in court.
Recent Decision: Boyle v. Salesforce.com, 2025
In a more recent Ontario decision, the court reinforced that termination clauses must meet ESA standards. A senior technical employee was awarded 8 months’ notice, a pro-rated bonus, and benefits. Even though the contract claimed to limit entitlement, it failed to comply with the ESA and was ruled invalid.
Unpaid Commission After Resignation
Commissions after resignation depend on when they are earned, something the Commission Agreement should define. For example:
- If you earned the commission before resigning, you may still be entitled to it
- If the agreement says commissions are only earned when funds are received, and that hasn’t happened, you may not be owed anything
Tip: Always ask for a copy of your Commission Agreement and check whether there’s clarity on when commissions are earned. Ambiguity can work in your favour, but it may take a legal review to know for sure.
Common Employer Missteps
Employers sometimes:
- Withhold commission without cause
- Rely on unenforceable clauses
- Fail to pay earned commissions after a termination
- Refuse to clarify or produce the Commission Agreement
These are not just bad practices; they may be violations of your legal rights.
What If My Employer Refuses to Pay My Commission?
Ontario law protects your right to fair compensation. If your employer refuses to pay:
- Document everything: Save emails, pay statements, and contracts
- Don’t wait: There are strict time limits to file legal claims
- Get legal advice: An employment lawyer can review your commission terms and determine next steps
Whether it’s through negotiation, a demand letter, or formal legal action, you may be entitled to compensation.
Why Employees Turn to Achkar Law
At Achkar Law, we help individuals across Ontario resolve unpaid commission claims. We understand how complex compensation structures can be, and how unfair it feels to be denied what you earned.
We’ll help you:
- Review and interpret your Commission Agreement
- Determine whether commissions were earned
- Assess your claim for compensation or damages
- Represent you in negotiations or legal proceedings
Contact Achkar Law Today
If you’ve been denied commissions after a resignation or termination, it’s time to get answers. You don’t have to fight alone.
Phone toll-free: 1-800-771-7882 | Email: [email protected]
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Achkar Law Professional Corporation and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Achkar Law Professional Corporation. ©
Workplace Law Topics: Termination and Severance, Wrongful Dismissal, Constructive Dismissal, Employee Contracts, Employment Dispute and Litigation, Ministry of Labour Complaint