DAMAGES IN WRONGFUL DISMISSAL CLAIMS FOR EMPLOYERS

Employees can claim several types of damages, including:

• Termination pay: This is to compensate them for the income they lost because they weren’t given proper notice of termination.
• Bad faith/moral damages: These are awarded if you acted unfairly or hurtfully during the dismissal, causing the employee mental distress.
• Punitive damages: These are rare and meant to punish you for very bad conduct during the dismissal.
• Human rights damages: If the employee was dismissed for discriminatory reasons, they can claim these damages.

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

To avoid bad faith damages, treat employees with respect during the termination process. Be honest about the reasons for dismissal, and don’t humiliate or make false accusations against the employee.

Punitive damages are awarded for malicious or oppressive conduct. To avoid them, ensure your termination practices are fair and comply with all legal requirements.

Make sure your workplace is free from discrimination and that all employment decisions are based on legitimate, non-discriminatory factors.

• Have clear employment contracts: Make sure your contracts are well-drafted and comply with the law.
• Follow proper termination procedures: Give adequate notice or pay in lieu of notice, and treat employees fairly during termination.
• Consult with an employment lawyer: Contact us to get legal advice before terminating an employee, especially if you’re concerned about potential legal issues.