Bad faith and mental distress damages
The law expects employers to treat employees in “good faith”, which means treating them honestly and fairly. Employers are always supposed to act this way, but the expectation is especially important when it comes to termination of employees. Where an employer acts in bad faith, employees can sometimes receive additional financial compensation.
Some examples of bad faith by an employer include:
Falsely accusing an employee of misconduct, such as fraud
Firing an employee, then pretending the employee resigned
Firing an employee on disability, pregnancy, or other leave
Lying about the reason for termination
Firing an employee to avoid paying pension
The experienced, strategic, and knowledgeable employment lawyers at Rousseau Mazzuca LLP routinely guide employees following a termination. Our goal is to help our clients understand their options, maximize their severance package, and protect their interests while avoiding prolonged legal disputes. We have many years of focused experience assisting clients in numerous industries and sectors.
WHAT IS BAD FAITH?
Under the law, employers are obligated to treat employees in “good faith”- treating them fairly and honestly at all times during the employment relationship. This is particularly important during the beginning of an employment relationship (recruitment) and the end of an employment relationship (termination).
Bad faith actions by an employer cause employees stress and can result in depression, anxiety, and other illnesses. The employer’s actions may also damage the employee’s reputation and prospects for finding another job. Where the employer’s improper behaviour has caused an employee to suffer, the employee can sometimes receive financial compensation.
Employers also must be honest with prospective employees in the recruitment process. Sometimes an employer is dishonest about the job and resources available. Relying on the employer’s false claims, the employee may quit another job or pass up another opportunity to take the position. Employees can also receive compensation in these situations.
