If you’ve been fired unfairly, one of the first questions that runs through your mind is, “What am I actually owed?” It’s a completely valid question. You’re thinking about your bills, your future, and how to get back on your feet.
While there’s no magic calculator that can spit out a number, we can break down exactly what goes into determining the value of a wrongful dismissal claim. The answer is often much more than what your employer initially offers.
Let’s look at what you can claim.
What Damages Can You Claim in a Wrongful Dismissal Lawsuit?
When you pursue a claim, you’re not just asking for a random amount of money. You are seeking compensation for specific losses. These are the main building blocks of your claim:
Pay in Lieu of Notice (The “Reasonable Notice Period”): This is the most significant part of most claims. It’s not just a couple of weeks’ pay. Common law requires employers to provide a “reasonable notice period” to help you find a new job. If they fire you without that notice, they have to pay you for that period. This can range from a few months to as much as 24 months of your full compensation.
Severance Pay: This is a separate, additional payment required by the Employment Standards Act (ESA) if you’ve worked for a large company (over $2.5M payroll) for more than five years. It’s calculated on top of your notice pay.
Lost Benefits: You are entitled to the value of the benefits you lost during the notice period, like health, dental, and life insurance.
Bonuses, Commissions, and Other Lost Earnings: You can claim compensation for any bonuses, stock options, or commissions you would have earned if you had been allowed to work through your reasonable notice period.
Legal Costs: In many successful cases, you can recover a portion of your legal fees from your former employer.
Download 10 Points that Strongly Indicate Wrongful Dismissal
Factors That Affect How Much You Can Get
So, why can a 20-year employee get 18 months of pay while a 2-year employee gets 3 months? It comes down to a few key factors that courts consider, often called the Bardal factors:
Your Length of Service: The longer you worked there, the more you are generally owed.
Your Age: Courts recognize it’s often harder for older employees to find a new job, so they are typically awarded longer notice periods.
Your Role/Position: Senior, specialized, or management roles usually result in larger packages.
Availability of Similar Employment: If you work in a niche industry with few job openings, your notice period will likely be longer.
Your Employment Contract: This is critical. If you signed a contract with a restrictive “termination clause,” it might limit you to the bare minimums under the ESA. It’s vital to have this clause reviewed by a lawyer, as many are not legally enforceable.
Before signing an employment contract, it is crucial to review the contract by an employment lawyer and to check for these 10 red flags yourself.
Can You Claim Additional Damages for How You Were Fired?
Sometimes, the way an employer fires you is just as damaging as the firing itself. If your employer was dishonest, cruel, or humiliating during the termination process, you may be able to claim additional damages.
Bad Faith Damages: This is compensation for an employer acting in “bad faith.” For example, if they lied about the reason for your termination, refused to provide a reference letter out of spite, or escorted you out in front of your colleagues for no reason.
Punitive Damages: These are rare but are awarded to punish an employer for extremely malicious or outrageous conduct
Do You Always Have to Sue to Get Compensation?
The word “sue” can be intimidating. The good news is that the vast majority of wrongful dismissal cases do not go to court.
The process usually starts with your lawyer sending a demand letter to your former employer. This letter outlines your case and demands a fair settlement. From there, most cases are resolved through:
Negotiation: Back-and-forth discussion between your lawyer and your employer’s lawyer to reach a fair number.
Mediation: A more formal negotiation where a neutral third-party (a mediator) helps both sides find a compromise.
These methods are faster, less stressful, and more cost-effective than a full trial.
Why Legal Advice is Crucial
Your employer’s first offer is almost always just their opening position—and it’s usually based on the lowest amount they are legally required to pay. Without a lawyer, you have no way of knowing what you are truly entitled to under common law.
An employment lawyer can assess the factors in your case, determine a realistic range for your compensation, and negotiate effectively on your behalf.
Find Out What Your Case is Really Worth
Every case is different, and your compensation depends on your unique circumstances. But you are almost certainly entitled to more than the bare minimum your employer offered.
