Calculation of Reasonable Notice Damages for Wrongful Dismissal

Calculation of Reasonable Notice Damages for Wrongful Dismissal

Employees dismissed by their employer after working for ten months can file a claim for wrongful dismissal while the court evaluates appropriate compensation.

Assessing Reasonable Notice Damages

In Canadian law, reasonable notice damages require a comprehensive evaluation of the Bardal factors. The courts use these criteria to determine a proper notice period for dismissing employees. Working with an employment lawyer in Toronto helps clients understand how these factors apply to their situations.

Factors Considered by the Court

The legal precedent Bardal v. established the foundational principles known as the Bardal factors. The Bardal factors originated from the Globe & Mail Ltd. (1960) decision and serve as the core elements to evaluate reasonable notice.

The courts base their determination on four key elements: employee age and employment period, job nature, and availability of matching roles.

Age of the Employee

The length of employment notice depends heavily on a person’s age. Since older workers encounter increased difficulties in finding new jobs, they usually need extended notice periods before termination.

A 55-year-old employee needs additional time to secure comparable employment opportunities to a 30-year-old employee.

Length of Service

The time an employee has worked at a company constitutes an essential consideration. Employees who have spent more time in their position deserve extended notice periods from their employer.

Short-term employees have the right to reasonable notification periods. Judicial systems grant significant notice to employees who work short periods because they recognize their difficulties when seeking new positions.

Character of Employment

The evaluation of notice depends strongly on the position duties performed by the employee. Organizations must provide more extended notice periods to senior managerial staff and specialized roles because of their unique expertise and duties. Notices of termination should have shorter durations when job duties are general.

Availability of Similar Employment

The speed at which dismissed employees can secure jobs matching their former positions remains an essential element for evaluation. Various elements determine this evaluation, including economic situations, market demands, and employee qualifications. Highly qualified candidates face difficulties finding suitable employment opportunities during limited job availability.

Application of the Bardal Factors

Courts use the Bardal factors to evaluate each case individually, which helps them establish proper notice duration. The Supreme Court of Canada, through Honda Canada Inc. v. Keays (2008), recognized that courts must assess reasonable notice through joint analysis of all factors while rejecting numerical guidelines. The assessment method allows courts to understand the specific details of individual cases.

Court’s Decision

Determination of Reasonable Notice Period

During the assessment of reasonable notice, the courts strive to grant employees enough time to find equivalent employment options. The designated period exists to reduce financial losses caused by employee dismissal.

A dismissed employee who worked ten months would receive a notice period between weeks and months based on how courts apply the Bardal factors.

Mitigation Efforts by the Employee

All workers must take sensible steps to decrease their financial losses through job searches for new employment opportunities.

Non-compliance with this duty leads to reduced notice duration for employees. The employer is responsible for proving that the employee failed to meet their obligation to mitigate damages.

Final Award

The final component of reasonable notice damages includes salary and benefits, which must be paid to employees throughout their notice period.

The court can approve extra compensation if the employer demonstrates bad faith conduct or performs egregious actions while terminating employees. Honda Canada Inc. v. Keays presented the matter of supplementary dismissal damages to the court, explaining the significance of proper behavior in termination.

Both employers and employees must understand how to calculate reasonable notice damages in wrongful dismissal cases. The Bardal factors establish a complete method for determining proper notice durations by considering individual employment situations.

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Author: Andy Snow

With a knack for simplifying complex business concepts, Andy Snow writes articles that empower his readers to make informed decisions about their businesses.