It depends.
Ontario courts have found several instances of employers acting with what is known as “bad faith” during the course of termination and have awarded the terminated employees additional damages as a result.
For example, if an employer terminates an employee for cause, meaning the employee is not entitled to reasonable notice or pay in lieu, the employer must be able to establish evidence of the cause. In one case, an employer terminated a long-term senior employee after alleging a broad claim of “fraud” against the employee. The employee brought a claim for wrongful dismissal, and the employer countersued. In the end, the court found that the employer had no basis for the claim of fraud, and awarded the employee significant damages, not only for payment in lieu of notice but also aggravated damages due to the employer’s egregious conduct.
It is important for any employee facing termination, for cause or otherwise, to seek out the advice of a skilled employment lawyer before agreeing to any terms, especially if they feel that their employer is not acting in good faith.
If you believe your employer acted in bad faith at the time of your termination and are seeking legal advice with respect to possible remedies, please contact Toronto employment lawyers, Sultan Lawyers at 416-214-5111 or via email to mlahert@sultanlawyers.com.