Bad Faith Termination in BC: When How You Were Fired Entitles You to More Than Severance

Being terminated is difficult enough. Being terminated in a way that is dishonest, humiliating, or deliberately harmful is something the law treats differently. In British Columbia, employers have a duty to act in good faith when ending employment. Where they breach that duty by lying about the reasons for dismissal, publicly humiliating the employee, making false misconduct allegations, or damaging the employee's ability to find new work courts can award moral damages in addition to severance. Understanding whether how you were fired entitles you to more than the standard notice is one of the most important questions to ask before you accept any settlement or sign a release.

The key principle

In BC, an employer has a duty to act honestly and in good faith during the termination process. Where that duty is breached and the breach causes actual harm mental distress, reputational damage, or financial loss courts can award moral damages beyond the standard notice award.

This principle comes from the Supreme Court of Canada's decision in Wallace v. United Grain Growers Ltd. (1997) and was refined in Honda Canada Inc. v. Keays (2008). The focus is on the conduct of the termination itself not just whether you were entitled to more notice, but whether the way the termination was handled caused you additional harm that should be compensated.

Were you fired in BC in a way that was dishonest, humiliating, or involved false allegations against you?

You may be entitled to moral damages in addition to your severance entitlement. Get legal advice before accepting any offer or signing a release that waives your right to pursue these additional claims.

Call: 1-800-771-7882 Speak With an Employment Lawyer

What triggers moral damages for bad faith termination in BC

Trigger 1

False allegations of misconduct

Where your employer claimed just cause for your termination by making false or exaggerated allegations of theft, dishonesty, harassment, or serious misconduct, and those allegations were untrue or could not be proven, the false allegation itself may support a moral damages claim particularly where the allegations damaged your reputation or ability to find new work.

Trigger 2

Humiliating or public dismissal

Escorting an employee out in front of colleagues without necessity, making the termination public within the workplace, or conducting the dismissal in a way designed to humiliate rather than communicate can attract moral damages where those actions caused genuine distress or reputational harm beyond the dismissal itself.

Trigger 3

Dishonesty about the reason for dismissal

Where your employer gave you a false reason for the termination misrepresenting a restructuring, fabricating a performance rationale, or concealing the real reason and that dishonesty caused you to make decisions about your future employment or legal rights that you would not have made had you known the truth, courts treat this as a good faith breach warranting additional damages.

Trigger 4

Withholding the Record of Employment

Refusing or unreasonably delaying the Record of Employment affects your EI eligibility and creates tangible financial harm beyond the termination itself. Where the withholding of the ROE was deliberate or punitive, this conduct may support a moral damages claim.

Trigger 5

Damaging references or misrepresentation of employment history

Providing a deliberately harmful reference, refusing to provide any reference in circumstances where one would normally be expected, or misrepresenting your employment history to a prospective employer can cause direct financial harm by undermining your ability to find comparable work. Courts treat this as a breach of the good faith obligation that may support additional compensation.

Moral damages require proof of actual harm mental distress, reputational damage, or financial loss that was caused by the employer's bad faith conduct. A difficult or unpleasant termination is not enough on its own. The conduct must have gone beyond what is inherent in any termination and must have caused you harm that can be identified and quantified. A lawyer can assess whether your circumstances meet this threshold.

Signs your termination may have involved bad faith

Your employer cited just cause for the dismissal but the alleged misconduct was either false, exaggerated, or never previously raised

The termination was conducted in a public or humiliating manner without any operational necessity in front of colleagues, announced in a group meeting, or accompanied by an unnecessary security escort

You were given a false or shifting explanation for the termination the reason changed when questioned, or you later discovered the stated reason was not the real one

Your employer delayed, withheld, or refused to provide your Record of Employment in circumstances where you needed it to apply for EI

You received a deliberately harmful or misleading reference that affected your job search, or your employer actively discouraged prospective employers from hiring you

The termination caused you significant mental distress, anxiety, or depression that goes beyond the ordinary stress of losing a job particularly where the manner of the dismissal was directly responsible

What to do if your termination involved bad faith conduct

Do not sign any release without legal advice

A release waives your right to pursue moral damages, wrongful dismissal claims, and any other legal remedy arising from the termination. Once signed, it is generally binding. Do not sign anything until you have had your situation assessed by a lawyer the additional claims available for bad faith conduct may be significantly more than the notice amount in your initial offer.

Document everything from the termination meeting

As soon as possible after the termination, write down everything you remember about how the meeting was conducted what was said, who was present, how it was communicated, and any specific statements made about the reason for dismissal. Contemporaneous notes are significantly more credible than accounts reconstructed later. Also preserve any written communications you received in connection with the termination.

Obtain medical support if the conduct affected your mental health

Moral damages require proof of actual harm. Where the manner of your termination caused mental distress, anxiety, depression, or other psychological consequences, medical documentation of those effects significantly strengthens a moral damages claim. See your doctor and ensure the connection between the termination conduct and your mental health impact is documented.

Get legal advice promptly

Limitation periods apply to wrongful dismissal and moral damages claims. Getting advice early gives you more options and allows your lawyer to assess the full scope of your entitlement including both your standard notice claim and any additional claim for bad faith conduct before those rights are affected by time. For more on what you may be owed from a standard perspective, see our post on the Bardal factors in BC.

Were you fired in BC in a way that was dishonest, humiliating, or involved false allegations?

Bad faith termination can entitle you to moral damages beyond your severance. Get advice on whether your circumstances support an additional claim before accepting any offer or signing a release.

Find Out What You May Be Owed Or call us: 1-800-771-7882

Frequently asked questions about bad faith termination in BC

What is bad faith termination in BC?

Bad faith termination occurs when an employer dismisses an employee in a way that is dishonest, unnecessarily harmful, or humiliating. BC courts recognize a duty on the part of employers to act honestly and in good faith during the termination process. Where that duty is breached and the breach causes actual harm mental distress, reputational damage, or financial loss courts can award moral damages in addition to the standard notice entitlement.

What are moral damages and how are they calculated in BC?

Moral damages compensate for harm caused by the employer's bad faith conduct during the termination harm that goes beyond the ordinary loss associated with being dismissed. They are calculated based on the actual harm you suffered, including mental distress, reputational damage, and financial consequences directly caused by the employer's conduct. They are awarded in addition to, not instead of, your standard notice and severance entitlement. There is no fixed formula courts assess the specific circumstances and the severity of the harm caused.

Can I claim bad faith termination if I was a probationary employee in BC?

Yes. While probationary employees with fewer than three months of service are not entitled to ESA notice, the duty to act in good faith still applies during a probationary dismissal. Where your employer made false allegations, discriminated against you on a protected ground, or conducted the dismissal in a humiliating or dishonest way, you may have a claim for damages arising from that conduct even without the standard notice entitlement.

Can my employer fire me for just cause in BC without evidence?

No. Just cause in BC is reserved for serious misconduct theft, harassment, violence, or repeated serious dishonesty. Minor performance issues or workplace disagreements do not meet this standard. The employer bears the full burden of proving just cause. Where just cause is alleged but cannot be proven, the termination is treated as without cause and you are entitled to notice and severance. Where false misconduct allegations were made, you may also have a claim for moral damages arising from the reputational harm caused.

Do I need to prove mental distress to claim bad faith termination damages in BC?

You need to prove actual harm which can include mental distress, but may also include reputational damage or financial harm caused by the employer's conduct. The harm must be beyond what is ordinarily inherent in any termination. Medical evidence documenting the psychological impact of the manner of dismissal significantly strengthens a moral damages claim. Courts assess the specific facts and the causal connection between the employer's conduct and the harm you suffered.

Were you terminated in BC in a way that felt dishonest or deliberately harmful?

Bad faith termination entitles you to more than your basic severance. Our team advises employees across BC on wrongful dismissal and moral damages claims. Contact us for a confidential consultation before signing any release.

Call us at 1-800-771-7882 or fill out the form below and we will be in touch.

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. ©

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