In the most straight forward case, an employee may let go through no fault of their own. For whatever reason, the employer decides to move on from the employee. In other instances, the employee may have done something wrong that drew the ire of the employer. However instead of investigating the matter, giving the employee a warning, or providing the employee an opportunity to rectify the situation, they are let go. In more nuanced cases, employers may change the scope of an employee’s duties and responsibilities. This effectively changes the scope of their job or contract, leading the employee to be effectively demoted. In such a situation, the employee may have been constructively dismissed, and would be entitled to compensation. There may be other situations where an employer does not accommodate an employee for a disability. Such an employer may force an employee back to their regular duties, despite objections from the employee and their treating physician. And when the employee cannot perform their duties, they are then let go. Such situations not only attract damages for wrongful dismissal, they may also attract punitive damages for discrimination in the workplace. In other instances, an employee may be solicited and induced, whether financially or through other incentives, to leave their current job, only to be fired within the probationary period of their new job. In such instance, the employee may be entitled to compensation for wrongful dismissal as if they were wrongfully dismissed from their previous job. Lastly, some independent contractors may actually be working as dependent contractors, and be entitled to notice and severance pay.

Once it is established that an employee has been wrongfully dismissed, they are entitled to certain damages. Most commonly, the damages sought are payment in lieu of notice and severance pay. If the employment contract is governed by the Employment Standards Act, the employee will be entitled to one week of notice pay for every year of service.

For employees of certain employers, severance pay may also be available under the Employment Standards Act, in the amount of approximately 1 week for every year of service. If the employment contract is not governed by the Employment Standards Act, then common law applies. Generally speaking, employees are paid 1 month for every year of service under common law.

It is important to remember that employees do have an obligation to mitigate their damages. They must show that they have attempted to find suitable or reasonable alternatively employment. If the employee becomes gainfully employed soon after being terminated, their damages may be limited to the time period during which they remained unemployed, as opposed to the full damages they may be entitled to if they continued to be without suitable employment.

In other instances, an employee may be solicited and induced, whether financially or through other incentives, to leave their current job, only to be fired within the probationary period of their new job. In such instance, the employee may be entitled to compensation for wrongful dismissal as if they were wrongfully dismissed from their previous job. Lastly, some independent contractors may actually be working as dependent contractors, and be entitled to notice and severance pay.

Once it is established that an employee has been wrongfully dismissed, they are entitled to certain damages. Most commonly, the damages sought are payment in lieu of notice and severance pay. If the employment contract is governed by the Employment Standards Act, the employee will be entitled to one week of notice pay for every year of service.