Can an Employee Keep Commission on Files Settled Before They Leave?
Yes — if the employment contract ties payment to a completed event (like a settlement or judgment) that occurred while the employee was still at the firm, the obligation to pay survives the employee’s departure. The Ontario Court of Appeal confirmed this principle in Wallbridge, Wallbridge v. Poupore, 2026 ONCA 417 (CanLII), a case involving a departing lawyer whose contingency-fee files had been resolved before they left the firm.
This ruling matters for any commission-based or contingency-fee worker in Ontario who has been let go and is wondering whether they are owed money for work already completed.
What Happens to Commission When the Triggering Event Occurred Before Termination?
When a commission or fee is tied to a specific outcome — a sale closing, a case settling, a deal finalizing — and that outcome happened before the employment ended, the employer generally cannot simply pocket the money. The Court of Appeal applied what is known as the Charles P. Rowen principle: if the contingency was satisfied during employment, the right to be paid for it survives the end of the employment relationship. The employee in this case was entitled to fees for files that had been resolved prior to their departure, and the court upheld that entitlement.
The practical lesson is straightforward: document when each triggering event (settlement, judgment, closing) occurred relative to your last day of work.
Does Quantum Meruit Cover Unbilled Work in Progress After Termination?
No — where an employment contract already governs how and when compensation is earned, a claim for unjust enrichment or quantum meruit for unbilled work in progress will not succeed. The court dismissed the employee’s attempt to recover for files that had not yet settled or produced a judgment by the time they left. Because the contract itself set out the payment structure, there was no legal gap for quantum meruit to fill. Put simply, the contract covered the situation, so there was no unjust enrichment.
This is an important boundary: quantum meruit is a remedy of last resort, available when there is no contract governing the work. It is not a tool to improve on a bargain that has already been struck.
Did the Employee Breach Their Duty of Good Faith Before Leaving?
No — the Court of Appeal agreed with the lower court that the employee had not breached their duty of good faith during the notice period before termination. The employee had taken steps to plan their departure and had suggested an office location to colleagues, but the court found this fell short of active competition or conduct that undermined the employer. Billings were maintained, and there was no evidence of sabotage or solicitation of clients before the employee left.
This is a reminder that planning a departure — even a careful, strategic one — is not automatically a breach of good faith. The line is crossed when an employee actively competes, solicits clients, or takes steps that harm the employer’s business while still employed.
Can an Employer Claim Damages Based on a Hypothetical Earlier Termination?
No — the court rejected the employer’s argument that it could have terminated the employee earlier and that this hypothetical scenario should reduce what was owed. Because no breach was established and there was no evidence of actual financial loss, the damages claim was dismissed. Courts will not speculate about what might have happened in a different set of circumstances when the employer cannot point to real, provable harm.
For employers, this underscores the importance of documenting losses clearly and contemporaneously, rather than constructing a theoretical case after the fact.
How Does This Decision Affect Commission-Based Employees in Ontario?
This ruling reinforces that commission-based and contingency-fee employees have real, enforceable rights when their triggering events have already occurred. Our Ontario employment lawyers regularly advise employees and employers on how commission structures interact with termination rights — an area where the details of the contract language can make or break a claim.
If you are in the Burlington, Hamilton, or broader Golden Horseshoe area and work under a commission or contingency arrangement, understanding your contract before a dispute arises is critical. Our Burlington employment law team can review your agreement and flag any provisions that could affect your entitlements on termination.
Practical Takeaways for Commission-Based Employees
- Track your triggering events. Keep a clear record of when each sale, settlement, or other commission-triggering event is completed, including the date relative to your last day of employment.
- Read your contract carefully. The language used to define when a commission is “earned” will determine whether you are entitled to payment after termination. Vague language can work in your favour or against you.
- Do not rely on quantum meruit as a backup. If your contract already addresses how you are paid, a court is unlikely to award extra compensation outside that structure.
- Plan your departure carefully. Taking steps to prepare for a new role is not automatically a breach of good faith, but actively competing or soliciting clients before you leave can expose you to liability.
- Document everything. If you believe you are owed commissions after termination, gather records of completed work, billings, and any communications about outstanding files before you leave.
UL Lawyers offers a free initial consultation from our Burlington office and works with clients across Ontario on employment matters. If you have questions about commission entitlements, termination packages, or employment contract language, our employment law team is ready to help.
This article is automated commentary on a public court decision and is for general information only — not legal advice. Decisions rely on facts unique to each case. If you are affected by a similar issue, contact a lawyer for advice specific to your situation.
FAQ
Frequently asked questions
Generally yes. If the event that triggers your commission — such as a closing or settlement — occurred before your termination, your employer's obligation to pay that commission typically survives the end of your employment. The exact answer depends on the wording of your contract.
A wrongful dismissal claim is based on your employer's failure to provide proper notice or pay in lieu when ending your employment. Quantum meruit is a separate claim for the reasonable value of services rendered when no contract governs the work. If your contract already covers how you are paid, quantum meruit is unlikely to apply.
Only if they can prove an actual breach and demonstrate a real financial loss caused by that breach. Planning your departure or recommending an office location to colleagues is not enough. Courts require clear evidence of harmful conduct, such as active competition or client solicitation while still employed.