DAMAGES IN WRONGFUL DISMISSAL CLAIMS FOR EMPLOYEES

You could receive several types of damages, including:

• Money to replace your lost wages: This is called “termination pay,” “severance pay,” or “pay in lieu of notice.” It covers the income you would have earned if your employer had given you proper notice.
• Money for the way you were treated: If your employer acted unfairly or hurtfully during the dismissal, you might get “bad faith” or “moral” damages to compensate for the emotional distress.
• Money to punish your employer: In rare cases where the employer’s actions were very bad, you might get “punitive damages” to punish them.
  Money if you were discriminated against: If you were fired for reasons related to your race, gender, disability, or other protected grounds, you could get “human rights damages.”

Termination pay is based on things like your age, how long you worked there, your job, and if there are similar jobs available. It can be a few weeks’ pay or up to two years of compensation. It is taxable, and you might have to repay some Employment Insurance (EI) benefits.

Bad faith damages compensate you for the mental distress or other damages caused by your employer’s bad behavior during the dismissal. This could include humiliating you, lying about why you were fired, or making false accusations. They are usually not taxable and you don’t have to repay EI.

Punitive damages are meant to punish your employer for extremely bad conduct. They are rare and are not taxable. You also don’t have to repay EI.

If you were fired for discriminatory reasons, you can claim damages for the violation of your human rights. These damages compensate for lost income, dignity, feelings, and self-respect. Amounts vary depending on the circumstances. They are generally not taxable, and you don’t have to repay EI.