wrongful dismissal affect employee benefits
The loss of a job can be a distressing time for an employee, especially if they believe their firing was unlawful and were not properly compensated. Fortunately, a Toronto wrongful dismissal lawyer can work with you to secure the resolution and compensation you deserve.
When determining the amount of damages awarded to an employee following their wrongful dismissal, courts typically consider the wages and other contractual entitlements (i.e. benefits) they would have received during a reasonable notice period, subject to certain deductions such as mitigation earnings. In addition, employees may be able to claim additional damages for mental distress caused by the employer’s bad faith conduct and/or medical injury.
In some cases, employers offer a termination package in lieu of payment upon termination, which can be helpful to the employee as they transition into a new career. However, the value of this package is dependent on whether or not the employment contract was terminated for cause or without cause, and what type of pension plan the individual was a member of at the time of their employment.
How does wrongful dismissal affect employee benefits?
The Supreme Court of Canada ruled in Fobert v. IBM Canada Limited that a terminated employee may be entitled to the increased value of their vested pension plan contributions, based on a “commuted value methodology.” This is on top of their common law reasonable notice period, and can be a substantial sum.
Depending on the circumstances, other compensatory items can also be awarded. For example, if an employee’s employer failed to provide them with sufficient working notice prior to their termination, this may be considered a wrongful dismissal lawyer, and they could be entitled to the cost of hiring a replacement to get them up to speed quickly.
In addition, a number of other non-monetary factors are taken into account by courts in awarding wrongful dismissal damages, including the financial impact of the termination on a person and their family. This includes ancillary expenses, such as childcare and house cleaning costs or commuting costs to a new job. It is important to have access to all documentation related to the termination in order to obtain a complete picture of the case and to identify potential damages.
It is also essential to gather proof that the reason for the termination was not due to any statutory protected class, such as race, age, gender or religion. This can be difficult, but it is necessary in order to have a successful wrongful dismissal case. Tangible evidence, such as emails or text messages from supervisors, or testimonies from coworkers who can vouch for the employee’s work ethic or recount discriminatory comments, can all be valuable in these types of cases.
Often, the most critical part of a wrongful dismissal case is the timing of the termination. If an employer dismissed an employee shortly after they filed a workers’ compensation or employment insurance claim, this may indicate retaliation, which is a form of wrongful dismissal and can also be a claimable offence.
