Aggravated Damages in Employment Law
Losing a job is one of life’s most challenging experiences, as it can disrupt a person’s financial stability, self-esteem, and personal identity. It is common for people to feel stressed and hurt after losing their source of income, and for many, their purpose. While normal shock or hurt feelings resulting from dismissal are not necessarily causes of action, an employer’s conduct in dismissing an employee can, under certain circumstances, entitle an employee to aggravated damages.
What are Aggravated Damages?
Employees who have been wrongfully dismissed may claim aggravated damages when their employer engages in unfair or bad faith conduct during the dismissal process, causing harm beyond the normal hurt or disappointment associated with the dismissal. This includes situations where an employer is untruthful, misleading, or unduly insensitive when dismissing an employee, resulting in additional mental distress for the employee.
What Counts as Unfair or Bad Faith Conduct?
Courts have found bad faith or unfair conduct during terminations in numerous circumstances. For example, aggravated damages have been awarded when an employer humiliates an employee in front of their coworkers, lies about the reason for terminating the employee, makes unsubstantiated accusations of misconduct, makes defamatory statements about the employee’s character, or dismisses the employee in retaliation for submitting a complaint.
Ontario courts have also awarded employees aggravated damages when a former employer fails to inform them that they will receive all entitlements under the Employment Standards Act, 2000 upon termination, regardless of whether or not they accept the employer’s termination package.
Whether a dismissal should lead to aggravated damages is assessed on a case-by-case basis. An employer’s conduct leading up to, during, and following the dismissal may be considered, provided it is related to the dismissal.
If you are an employee who has questions about your dismissal, timely legal advice is key to help preserve your case.
If you are an employee who is considering dismissing an employee, seeking legal advice before termination of their employment is the best way to reduce your business’ exposure to liability.
What Counts as Compensable Damages?
Courts have recognized that an employee’s mental distress resulting from their dismissal can fall along a spectrum. On one end is someone who suffers normal distress and hurt feelings from their dismissal, which are not compensable. On the other end is someone who suffers from a diagnosable psychological condition because of the manner of dismissal, which can entitle the employee damages. However, a person does not need to show they suffered from a diagnosable psychological condition to be entitled to aggravated damages.
To be entitled to aggravated damages, a person must show that they experienced mental distress, hurt feelings, or a loss of dignity, pride, or self-respect beyond the normal feelings associated with a dismissal. Some evidence of additional distress is required, for instance, a doctor’s note. An experienced employment lawyer can help you gather the necessary evidence to prove your entitlement to aggravated damages.
How an Employment Lawyer Can Help
An employment lawyer can analyze your case and help explain what your termination entitlements are. They are also advocate for you and seek aggravated damages through a demand letter, or through the employment litigation process.
Take Action Today
If you believe you have been subjected to employer misconduct that may warrant aggravated or punitive damages, it’s crucial to act promptly. Employment law can be complex, and having an experienced employment litigation lawyer on your side can make all the difference.
At Achkar Law, our dedicated team of employment lawyers understands the intricacies of employment law and is committed to protecting your rights. Whether you have faced harassment, discrimination, wrongful termination, or any other form of unjust treatment, we are here to help you seek the compensation and justice you deserve.
Contact Achkar Law
Don’t wait to take action. Reach out to Achkar Law for a confidential consultation to discuss your case and explore your legal options. Our skilled lawyers will provide you with the guidance and representation you need to pursue aggravated and punitive damages effectively.
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