Mental Distress — Ontario Employment Law
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About Mental Distress
Losing a job is almost always a stressful and upsetting experience. However, in Ontario employment law, the normal anxiety and sadness that come with a termination are not, by themselves, grounds for legal compensation. The concept of 'mental distress' in a legal context refers to something more severe—psychological harm caused by an employer's unfair, untruthful, or unduly insensitive conduct during the process of dismissal. These are often called 'moral damages' or 'aggravated damages' by the courts.
Under common law, employers in Ontario have a duty of good faith and fair dealing in the manner of dismissal. This doesn't mean they have to be kind when firing someone, but it does mean they cannot be dishonest, misleading, or engage in conduct that is humiliating or cruel. When an employer breaches this duty, and it causes the employee mental distress beyond the normal hurt of being fired, a court may award additional damages. For example, if an employer makes false accusations of theft to justify a termination, embarrasses an employee by having them escorted out without cause, or terminates someone while they are vulnerable on medical leave in a callous way, a claim for mental distress might arise.
To be successful, a claim for mental distress requires evidence. It's not enough to simply state you were upset. An employee typically needs to show a link between the employer's bad faith conduct and the harm they suffered. This could include medical records from a doctor or therapist, a diagnosis of anxiety or depression, or clear testimony showing how the employer's actions had a profound and negative impact on their life and well-being. Because the specifics of a termination are so crucial in these cases, understanding how the law might apply to your unique situation often requires a detailed review with a legal professional.
Frequently Asked Questions
Can I sue my employer for mental distress just because getting fired was upsetting?
No. Standard feelings of sadness or stress from a job loss are not compensable. To claim damages for mental distress, you must prove that your employer acted in bad faith or was unduly insensitive in the manner of your dismissal, and that this specific conduct caused you harm beyond the normal upset of a termination.
What's the difference between mental distress damages and punitive damages?
Mental distress damages (also called aggravated or moral damages) are compensatory; they are meant to compensate you for the actual psychological harm you suffered. Punitive damages are different; they are intended to punish the employer for malicious or outrageous conduct and deter them from repeating it.
How do I prove I suffered mental distress for a legal claim?
Evidence is key. This can include doctors' notes, therapist reports, prescription records, and your own testimony about the impact on your health and life. The more objective the evidence linking the employer's conduct to your distress, the stronger your claim will be.
Is there a deadline to make a claim for mental distress damages?
Yes. In Ontario, claims for mental distress related to a wrongful dismissal are typically subject to the two-year limitation period under the Limitations Act, 2002. This means you generally have two years from the date of your dismissal to file a lawsuit.
My boss fired me and lied about the reason. Can this support a claim for mental distress?
It potentially can. Being untruthful or dishonest during the termination process is a classic example of bad faith conduct. If you can demonstrate that this dishonesty caused you significant mental harm, you may be entitled to aggravated damages.
Are mental distress damages the same as an award for 'injury to dignity' under the Human Rights Code?
They are similar but arise in different contexts. Mental distress damages in a dismissal case are for the manner of termination. An award for injury to dignity, feelings, and self-respect under the Ontario Human Rights Code is for harm caused by discrimination or harassment, which can happen at any time during employment.
When should I see a lawyer about mental distress caused by my firing?
If your termination involved humiliation, false accusations, or particularly cruel behaviour that has had a tangible negative effect on your mental health, it is wise to consult an employment lawyer. They can assess whether the employer's conduct meets the high threshold for a bad faith claim.
Common Scenarios
- A long-term employee is terminated via a cold, impersonal email while on approved sick leave for a serious illness.
- During a team meeting, a manager announces a project manager is 'no longer with the company due to performance issues,' effectively firing them in front of their peers.
- An employer falsely accuses an accountant of fraud to avoid paying severance, then refuses to provide a Record of Employment, causing significant financial and emotional stress.
- A retail worker is fired and then subjected to a campaign of bad-mouthing by their former manager, who calls other local stores to prevent them from getting a new job.
- After being terminated, a senior executive is locked out of their email and company accounts, and security guards watch them pack their personal belongings at their desk in full view of the office.
What You Should Know
- As soon as possible after your termination, write down a detailed, dated account of everything that was said and done during the dismissal meeting.
- If you seek medical attention for anxiety, depression, or stress following a difficult termination, ensure you tell your doctor what caused it and keep a record of your visits.
- Do not assume that mental distress damages are automatic. The legal bar is high and requires proving both bad faith conduct by the employer and genuine harm to you.
- Understand that damages for mental distress are awarded in addition to, not instead of, your entitlements to reasonable notice or severance pay for the wrongful dismissal itself.
- Before accepting a severance package, especially after a distressing termination, have an employment lawyer review the circumstances to see if you may have a claim for additional damages.
Featured Cases
Headley v. City of Toronto
2019 ONSC 4496 (CanLII) · 2019-08-27Wrongful Dismissal: City of Toronto Employee Awarded 18 Months Notice and Damages
A wrongful dismissal case where the employer failed to prove just cause for terminating an employee due to alleged theft and fraud. The court awarded 18 months' notice and damages for mental distress and financial loss, but did not grant punitive damages.
Gu v. Habitat for Humanity Greater Toronto Area Inc.
2018 ONSC 2725 (CanLII) · 2018-05-10Wrongful Dismissal Case Involving Mental Distress and Defamation
A wrongful dismissal case where the court considered damages for mental distress and defamation. The case also involved the Employment Standards Act, 2000, and the burden of proof for summary judgment.
Osadca v Recyclenet Corporation
2015 ONSC 4717 (CanLII) · 2015-07-27Wrongful Dismissal: 7.5-Year Employee Entitled to 12 Months' Notice
A wrongful dismissal case where an employee with 7.5 years of service was terminated without cause. The court considered Bardal factors to determine the reasonable notice period and calculated damages based on pre-termination income, while also awarding damages for mental distress due to the manner of dismissal.
Farwell v. Citair, Inc.
2012 ONSC 6013 (CanLII) · 2012-10-23Constructive Dismissal: Vice President Reassigned to Purchasing Manager
A constructive dismissal case where a Vice President of Operations was reassigned to a lower position, leading to a determination of 24 months of reasonable notice and a finding that the plaintiff's refusal to accept the position was reasonable. The court also ruled that the employer did not act in bad faith and thus no damages for mental distress were awarded.
Strizzi v. Curzons Management Associates Inc.
2011 ONSC 4292 (CanLII) · 2011-07-21Constructive Dismissal Case: Verbal Abuse and Lack of Support Led to Termination
A constructive dismissal case involving a general manager of a fitness club who was subjected to verbal abuse, false accusations, and lack of support from head office. The court applied the Farber test for constructive dismissal and the Bardal factors to determine the notice period, finding that seven months was reasonable. The plaintiff claimed additional aggravated damages for the manner of dismissal but failed to provide sufficient evidence of mental distress.
Jensen v. Schaeffler
2011 ONSC 781 (CanLII) · 2011-02-1028-Year Employee's Wrongful Dismissal: Reasonable Notice and Mental Distress
A wrongful dismissal case where a 28-year employee was terminated without cause due to physical limitations. The court debated the reasonable notice period, applied Bardal factors, and dismissed claims for mental distress and bad faith due to lack of evidence.
Colistro v. TBaytel
2010 ONSC 2306 (CanLII) · 2010-04-27Wrongful Dismissal: Aggravated Damages and Mental Distress Claims
A wrongful dismissal case where the plaintiff sought aggravated and punitive damages, as well as damages for mental distress and loss of reputation. The court considered whether such damages require an independent actionable wrong and whether the Statement of Claim disclosed a reasonable cause of action under the 'plain and obvious' standard. The case also involved claims related to workplace safety legislation and intentional infliction of emotional harm.
Ghany v. Federal Express Canada Ltd.
2009 CanLII 41898 (ON SC) · 2009-08-10Wrongful Dismissal: Leave to Amend Pleadings for Retaliatory Discharge and Mental Distress
A merits decision involving a wrongful dismissal and constructive dismissal case where the plaintiff sought to amend their statement of claim to include allegations of retaliatory discharge, mental distress, and claims of intentional and negligent infliction of emotional distress. The court considered whether these amendments were legally tenable under the Rules of Civil Procedure and whether they disclosed a cause of action.
Sandy v. Beausoleil First Nation
2003 CanLII 10711 (ON SC) · 2003-04-14Wrongful Dismissal: No Just Cause Found, Damages Awarded for Mental Distress
A wrongful dismissal case where the plaintiff was terminated without notice for alleged breaches of confidentiality, false information, and insubordination. The employer failed to prove these allegations on balance of probabilities and did not apply progressive discipline. The court awarded damages for wrongful dismissal and mental distress, but denied punitive damages.
Glass v. Systemetrix Corp.
1997 CanLII 12340 (ON SC) · 1997-09-04Wrongful Dismissal: VP Terminated Without Just Cause, Notice Period Limited to 22 Months
A wrongful dismissal case involving a Vice President (Technical Staff) who was terminated, with allegations of misconduct including irregular work hours and refusal to perform staff reviews. The employer failed to establish just cause for termination, and the court limited the reasonable notice period to 22 months of service with the successor company. The plaintiff’s claim for $25,000 in mental distress damages was dismissed due to lack of medical evidence and insufficient egregiousness of the termination conduct.
Kopij v. Metropolitan Toronto (Municipality)
1996 CanLII 8026 (ON SC) · 1996-06-28Constructive Dismissal: Supervisor of Labour Relations Awarded Damages for Procedural Unfairness
A constructive dismissal case involving a supervisor of labour relations employed at pleasure who was constructively dismissed after key personnel refused to work with him. The court addressed whether constructive dismissal applies to employees at pleasure, procedural fairness in termination, and awarded damages for mental distress resulting from the lack of procedural fairness.
Ditchburn v. Landis & Gyr Powers Ltd.
1995 CanLII 7290 (ON SC) · 1995-09-29Wrongful Dismissal: 27-Year Employee Awarded 24-Month Notice
A wrongful dismissal case involving a long-term employee with 27 years of service who was dismissed following an isolated incident of misconduct. The court examined whether the employer breached the employment agreement by failing to provide adequate support, assessed the reasonableness of a 24-month notice period for a 59-year-old employee with limited career options, and considered damages for mental distress and the impact of a poor reference letter.
Gordon v. Abbott Laboratories Ltd.
1995 CanLII 7286 (ON SC) · 1995-06-28Constructive Dismissal: 9-Year Sales Manager Awarded 15 Months Notice and $25,000 in Damages
A constructive dismissal case where a middle management employee with nine years of employment in a specialized sales field was dismissed. The defendant admitted to constructive dismissal but disputed the notice period, which was ultimately determined to be 15 months. The court also awarded damages for mental distress and punitive damages, and ruled on the entitlement to an incentive bonus.
Heslop v. Cooper's Crane Rental Ltd.
1994 CanLII 7384 (ON SC) · 1994-09-12Wrongful Dismissal at Age 65: 12 Months Notice Awarded
A wrongful dismissal case involving a plaintiff terminated at age 65 without a retirement policy or contractual agreement extending employment beyond that age. The court applied common law principles of notice and awarded 12 months’ notice based on age, length of service, and employment circumstances. The plaintiff’s claim for mental distress damages was dismissed as the termination was not conducted in a high-handed or malicious manner. The case also included claims for unpaid overtime, which were dismissed due to lack of approval and unreliable records.
Bagnall v. Calvin Klein Cosmetics (Canada) Ltd.
1994 CanLII 7413 (ON SC) · 1994-06-30Wrongful Dismissal: Fragrance Demonstrator Claims Lack of Warning
A wrongful dismissal case involving a fragrance demonstrator who was dismissed for alleged personal hygiene issues and disruptive behaviour. The court examined whether the employer provided adequate warnings before termination, whether the dismissal was justified as for cause, and whether the plaintiff was entitled to damages due to the lack of warning and abrupt termination.
Russello et al. v. Jannock Ltd. et al.
1987 CanLII 4152 (ON SC) · 1987-03-16Wrongful Dismissal: Mental Distress Damages Denied Unless Termination Was Wanton or Reckless
A wrongful dismissal case addressing whether damages for mental distress can be awarded. The court held that mental distress damages are not available unless the termination was wanton or reckless, or the distress was reasonably contemplated at the time of hiring. The employer's security policy requiring immediate removal of belongings and supervision during dismissal was deemed not wanton or reckless, and damages for mental distress were denied.
Fulton v. Town of Fort Erie
1982 CanLII 2121 (ON SC) · 1982-10-06Wrongful Dismissal: Mental Distress Damages and Jury Trial Appropriateness
A wrongful dismissal case where the plaintiff sought damages for mental distress and employment benefits beyond salary. The court considered whether a jury trial was appropriate given the unsettled legal issues and complexity of damages assessment, ultimately deeming it inappropriate.
Mack v. Dresser Industries Canada, Ltd.
1982 CanLII 2195 (ON SC) · 1982-08-27Wrongful Dismissal: Punitive Damages Not Available in Ontario Breach of Contract Cases
A wrongful dismissal case addressing whether punitive damages can be claimed in breach of contract actions and whether damages for mental distress are available. The court held that punitive damages are not available in breach of contract actions in Ontario, while damages for mental distress may be claimed if properly pleaded.
Pilon v. Peugeot Canada Ltd.
1980 CanLII 1631 (ON SC) · 1980-09-03Wrongful Dismissal: 17-Year Employee Awarded 12 Months Notice and $7,500 Mental Distress Damages
A wrongful dismissal case involving a long-term employee who was dismissed after 17 years of service. The employer provided three months’ notice, which the court found insufficient, determining 12 months’ notice was reasonable. The employee was awarded $7,500 for mental distress caused by the termination, but claims for long-term hardship were rejected.