Damages For Wrongful Dismissal (An Employer's Guide)

Notice of Termination

An action for wrongful dismissal is based on an implied obligation in all employment contracts to give reasonable notice of an intention to terminate the employment. The notice allows an employee the time to find replacement employment before they lose their income from their current employment.

If the employer does not have "just cause" for termination, then the employee is entitled to notice of termination or payment in lieu. Just cause is usually reserved for the most egregious employee misconduct such as theft, repeated dishonesty, and sexual harassment, if adequate notice is not given, the law will provide damages to the employee as compensation – generally determined by what the employee would have earned during the length of notice that the employee is entitled to. Consequently, there are both statutory and common law obligations employers must then consider to avoid claims for damages.