There are many circumstances that can arise that result in an
employer terminating an employee without cause. An employee who is
terminated without cause is entitled to reasonable notice of
termination, or pay in lieu thereof. Often times an employer who is
terminating an employee without cause will make an offer of
severance (e.g. pay in lieu of notice) that is conditional upon the
employee signing a release. If the employee refuses to sign the
release, and the parties are unable to agree on the amount of pay
in lieu of notice the employee is entitled to, litigation will
often ensue.
In New Brunswick, the trend for several years has been for
employees who have been terminated without cause to file an action
for wrongful dismissal, followed shortly thereafter with a motion
for summary judgment and advance payment of special damages.
Special damages are those damages that have accrued as of the date
of the hearing.