Every employee has an employment contract, even without written documentation. When an employee agrees to perform work and an employer agrees to pay for it, this creates a contract.

Wrongful dismissal (or wrongful termination) occurs when an employer ends an employee’s contract without valid reason or proper notice.

Examples of wrongful dismissal are:

• Dismissal without following required contract processes, such as a series of warning letters
• Dismissal based on false accusations of misconduct
• Illegal discrimination based on English communication abilities, disability, race, religion, or place of origin
• Constructive dismissal where employers force employees to accept contract changes or quit
• Unilateral salary reduction without cause, or failure to pay amounts owed, which may count as constructive dismissal
• Permanent job loss labeled as termination, layoff, or leave of absence, with no recall intention or job resumption guarantee
• Termination due to voluntary partnership dissolution, without cause or notice
• Employee transfer to a subsidiary or related company, which may count as dismissal depending on contract terms

When terminating employment, with or without cause, employers must:

1. Handle outstanding pension requirements
2. Pay all remaining wages and vacation pay
3. Submit the “Record of Employment” to the government and provide a copy to the employee

Pay in Lieu of Reasonable Notice

Wrongfully dismissed employees deserve pay in lieu of notice. Employers must pay damages equal to keeping the employee during the notice period. Courts typically use a guideline of one month’s notice per year of service.

Aggravated and Punitive Damages

Wrongfully dismissed employees may receive additional compensation for mental distress and punitive damages to deter employer misconduct. Courts may award both “aggravated damages” and “punitive damages” when facts support both claims.

Bad Faith Damages

Employers must act in good faith during dismissal, being candid, reasonable, honest, and forthright. Courts will award additional damages for bad faith conduct like untruthful, misleading, or unduly insensitive behavior.

Bad faith conduct includes:

• Dismissals causing mental distress
• Misrepresenting termination reasons
• Making false accusations to harm employee reputation
• Giving false job security assurances

Bad faith damages compensate for serious, ongoing distress beyond normal job loss stress.

At Ghai Law, we help secure monetary compensation for wrongful dismissal. Challenging severance entitlements requires expert legal guidance. We’ll assess your situation, review documents, and determine your common law severance rights. We only charge fees when we win compensation for you.