wrongful dismissal claims be pursued by shareholders
Wrongful Dismissal is the termination of an employee by an employer without cause. It is a breach of an employment contract or public law and can result in damages, including compensation, if the dismissal was illegal. The wrongful dismissal claim can be brought by the former employee or the company that wrongfully dismissed them. In some cases, punitive damages (also called aggravated damages or Wallace damages) are also awarded in a wrongful dismissal lawsuit. These types of damages are intended to express society’s repugnance for the conduct and to deter employers from engaging in similar behaviour in the future.
There are several reasons an employer might fire an employee, some of which are considered fair and others not. An employer can only be found to have acted unreasonably if their reason for firing an employee is one of the potentially fair reasons set out in the Employment Relations Act, such as: conduct, capability, redundancy, or “some other substantial reason” (SOSR).
It’s important that you consult with a Toronto wrongful dismissal Lawyer to discuss your case if you feel you have been unfairly dismissed. An experienced wrongful termination lawyer can help you determine whether you have a case and guide you through the legal process to obtain the appropriate compensation.
Can wrongful dismissal claims be pursued by shareholders?
Employers often attempt to avoid the risk of a wrongful dismissal lawyer by establishing probationary periods for new hires. This allows the employer an opportunity to evaluate the work performance of a new hire before making any binding employment contracts or terminating their services. However, it’s not uncommon for employers to terminate an employee that has been on a probationary period for any number of reasons, some of which may be considered wrongful termination.
An employee who is dismissed before the expiration of their employment contract may be entitled to severance pay and other damages, depending on their length of service and their statutory or contractual entitlement to notice. In non-unionized workplaces, the Employment Standards Act (ESA) provides for termination entitlements and procedures. In unionized environments, employees’ rights and responsibilities are governed by their collective agreement and grievance processes.
In addition to termination pay and severance pay, an employee who was unfairly dismissed may be entitled to aggravated or punitive damages if the conduct of their employer was particularly flagrant, abusive, or egregious. This type of award is typically reserved for the most serious wrongful dismissal cases, and serves as a way to offset the financial loss that can be suffered from such a termination.
The duty to mitigate (seek re-employment in a comparable position) can be taken into account when calculating an award for damages in wrongful termination claims. The amount of mitigation awarded will be reduced if an employer can prove that the employee failed to make reasonable efforts to seek re-employment in a comparable position. This includes an employer who is found to have breached their obligation to provide a notice period under the ERA. It can be increased if the employee can demonstrate that they had special circumstances resulting in an accelerated need to find another job.