Damages Chapter — Index to Contents

This chapter explores exceptional damage awards in Canadian wrongful dismissal law, including moral, aggravated, punitive, and other damages arising from bad faith conduct by employers. It includes leading cases such as Wallace v United Grain Growers Ltd. (1997) and Honda v Keays (2008), as well as recent case law developments.

Wallace: The Origins of Bad Faith Damages

Introduces the Supreme Court of Canada’s recognition of damages for bad-faith manner of dismissal and explains why “Wallace damages” became a shorthand across Canada.

Wallace Part 2 — Damages for Tangible Financial Loss

Explains when employer misconduct leads to measurable financial loss, such as difficulty in finding new employment and how courts quantify that loss.

Summary — Wallace Part 2 Cases

A concise roundup of key cases applying Wallace principles to tangible loss, with practical takeaways for pleadings and evidence.

Duty of Good Faith: Prior to Honda

Charts the development of the duty of good faith in employment relationships before Honda v Keays, setting the stage for modernization of the doctrine.

Honda — Supreme Court on Good Faith

Shows how Honda v Keays recalibrated Wallace damages, eliminating the concept of an extension of the notice period, distinguishing compensatory moral damages from punitive awards and clarifying evidentiary requirements.

Bhasin on Duty of Fair Dealing

Places employment law within the broader framework of honest performance, explaining how Bhasin v Hrynew and potential impact on employment law cases.

Bhasin — Damage Assessment

Applies the post-Bhasin lens to quantify damages where dishonesty or unfair dealing aggravates the harm flowing from termination and how to assess the damages.

Human Rights — Ontario

Outlines remedies under Ontario’s human rights regime that can overlap with employment damages where discrimination or reprisal accompanies termination.

Aggravated & Human Rights Damages

Explains when aggravated damages and human rights remedies may both be available, and how courts allow for double recovery.

Chart: Overlapping Damage Awards

Visual guide to where moral, aggravated, punitive, and human rights damages intersect—and where they remain distinct.

Charts of Damage Awards

Reference charts summarizing recent awards and typical ranges, useful for mediation, risk assessment, and submissions.

Aggravated, Punitive, Tort & Human Rights (Ontario) — Post-Honda

Survey of post-Honda decisions clarifying thresholds for aggravated vs. punitive damages, with Ontario-specific trends and cautions.

Unfair Conduct — pre-Honda: Extended Notice, Punitive & Tort Awards

Historic look at how courts addressed egregious dismissal conduct before Honda, including extended notice periods and tort remedies.

Present & Future Income Loss

Sets out the evidentiary and causation requirements for recovering income loss beyond reasonable notice where employer conduct increases the harm.

Tort Claims

Overview of concurrent torts that may arise from workplace conduct (e.g., defamation, IIED), and how they interact with wrongful dismissal claims.

Future Income Loss

Focuses on the assessment of such claims in tort actions.

Past Income Loss

Covers proof and calculation of actual losses up to trial.

Examples of Tort Claims in Employment Law

Practical examples where employer actions cross into tortious conduct, with notes on pleading strategy and proof.

The Intentional Infliction of Emotional Suffering

Sets out the test for IIES/IIED in the employment context, including outrageous conduct and verifiable psychiatric harm.

Damage Assessment for the Intentional Infliction of Emotional Suffering

Explains medical evidence, duration of harm, and proportionality factors that drive quantum for IIED-type claims.

Family Law Dependants Claim

Explores when dependants advance claims linked to employment-related torts and how those interact with employment damages.

Negligent Infliction of Mental Distress

Contrasts negligent with intentional infliction claims, highlighting proof burdens, foreseeability, and typical award ranges.

Defamation

Addresses defamatory statements in reference letters or termination communications and the availability of aggravated/punitive damages.

Assault & Battery

Covers intentional physical torts in the workplace, employer vicarious liability, and the structure of non-pecuniary and pecuniary awards.

New Tort of Harassment

Summarizes the emerging tort of harassment in Canada, its current recognition in select jurisdictions, and how plaintiffs have framed claims alongside wrongful dismissal and intentional infliction torts.

Limitation Periods

Quick reference on limitation clocks for wrongful dismissal, human rights, and common employment torts to avoid time-bar traps.

Damage Charts

Master index linking to all quantitative charts in this chapter for rapid comparison and citation.

Chart — Damages: Intentional Infliction of Emotional Suffering

Curated examples and award levels for IIED/IIES claims in employment, with brief facts and ratios.

Chart — Damages: Past & Future Income Loss

Representative awards and methodologies for proven past losses and projected future earnings loss.

Chart — Damages: Assault & Battery

Snapshot of non-pecuniary and pecuniary awards in employment-related intentional torts involving physical contact.

Chart — Assault & Battery: Income Loss — Past & Future

Breakdown of how courts apportion income-loss components in assault/battery cases arising from employment.

Jury on Damage Awards

Notes on jury use in employment related torts and how jury findings affect quantum and appellate review.

Impact of Worker’s Compensation Legislation

Explains when workers’ compensation exclusivity bars civil actions and when parallel claims remain open.

Human Rights & Workers’ Compensation

Outlines interactions between human rights remedies and WSIB/WCB regimes, including election, overlap, and timing issues.

Suing the Personal Offender

Discusses personal liability for managers or co-workers who commit torts, and strategic considerations in naming individual defendants.

Issue of the Notice Period & Damage Claims

Basic Introduction to Notice Period and a plug for Barry Fisher.

Exceptional Notice Period Awards

Highlights rare cases where courts awarded unusually long notice periods due to factors like employer bad faith, specialized roles, or limited re-employment prospects.

Additional Claims for the Notice Period

Reviews other damage claims attributable to the failure to provide fair notice.

Statutory Violation: Analysis of the Remedy

Analyzes remedies for breaches of employment standards or related statutes, and when statutory relief complements or displaces common law damages.

Reinstatement Remedy for Statutory Violation

Describes when reinstatement is available under statute, the tests applied by the relevant tribunal.

Administrative Remedies for Statutory Violation: Chart 

Quick-reference chart of administrative remedies available for statutory breaches, with damages provided.

Employer Suing for Lack of Notice

Explains when employers can recover damages for an employee’s inadequate resignation notice, including proof of loss and mitigation issues.

Notice of Resignation: A Contract

Reviews contractual clauses governing resignation notice, enforceability considerations, and how courts measure damages for breach.

Time to Review Negligence Claim

Provides a framework to reassess negligence claims within employment disputes, including duty, standard of care, causation, and damages.

Negligent Misrepresentation

Sets out the elements of negligent misrepresentation in the hiring or employment context and typical categories of recoverable loss.

Disclaimer Clause

Explains how disclaimer language can limit or negate reliance in negligent misrepresentation claims, and drafting pitfalls to avoid.

Tercon: More on Disclaimer

Applies Tercon Contractors principles to employment disclaimers: interpretation, unconscionability, and overriding public policy.

Entire Agreement Clause

Discusses when entire agreement clauses restrict reliance on pre-contractual statements, and how courts treat ambiguity or conflicting terms.

Unsophisticated Party & The Entire Agreement Clause

Notes how courts scrutinize entire agreement clauses where there is inequality of bargaining power or unsophisticated parties, affecting enforceability.

Must Employer Give Reason for Termination

Clarifies when employers must provide reasons for termination (contract, statute, or human rights context) and evidentiary implications if reasons are disputed.

Statutory Obligations & Issue Estoppel

Outlines how findings in administrative or human rights proceedings can create issue estoppel in later civil actions, and exceptions to estoppel.