By now you may have heard about the lawsuit by a former Omers executive regarding owed compensation. If you haven’t or you need a refresher, the suit alleges that Omers owes the executive C$65mm after being fired for not accepting changes to his compensation package. The outcome of this lawsuit is yet to be determined, but it is a valuable reminder of the high stakes of compensation and the need to have well-documented and secure policies in place.
While much of this legal action centers around Omer’s right to change their compensation plan at will and the rights retained by an employee, as a firm what steps can you take to protect yourself beyond just the employment contract?
Having a well-documented, locked-down record of your compensation management, administration and history can go a long way in assisting in any potential litigation. A compensation management system like Compose can be an important arrow in your quiver if any issues arise. Compose gives you:
- A single secure source of historical compensation payouts
- A complete audit trail of decisions and changes with documented accountability and timing
- The ability to manage all compensation plans from a secure, centralized repository
- A permanent record of all employment agreements and special compensation considerations
Let the Omers case be a warning to make sure that you are keeping the proper records, documenting your changes, and securing your data. It could make or break your ability to support your firm’s position in the future.