Bad Faith Discharge
Additional compensation is possible if your employer acts inappropriately during your termination
Here is the information you need to know about bad faith discharge.

What is bad faith discharge?
Compensation from a wrongful dismissal claim is generally intended to cover the pay you would have earned during your reasonable notice period. However, if your employer’s conduct during your dismissal is dishonest, misleading, or excessively harsh, you may be entitled to additional compensation.
Employers are legally required to act in good faith and fair dealing when terminating an employee, meaning they should dismiss you in a reasonable and respectful manner. If you experience additional harm because they are unfair, dishonest, misleading, thoughtless, harsh, or extreme in the way they terminate your employment, you could claim additional compensation for a bad faith discharge.
If your dismissal caused mental distress due to unfair conduct, including workplace harassment or bullying, it is recommended to speak with an experienced employment lawyer.
How can an employment lawyer help you better understand if you can claim bad faith discharge compensation?
An employment lawyer from our team can help you understand if your situation warrants additional compensation for bad faith discharge. When an employer fails to adhere to their responsibilities, it is in every employee’s best interests to have a legal professional evaluate the situation.
It is important to note that not all unpleasant behaviour qualifies for additional damages, but bad faith actions such as dishonesty, misleading statements, or other unfair conduct may warrant further compensation.
Our legal team will assess whether your employer’s conduct breached the duty of good faith and fair dealing. We’ll also examine whether the manner of dismissal caused harm to your reputation or career prospects, or resulted in prolonged mental distress, key factors in building a strong case for bad faith damages.
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What legal obligations do employers have during the termination process?
When terminating an employee, employers must follow Ontario’s legal standards of fairness and good faith throughout the employment relationship. This means that an employee’s dismissal must involve reasonable notice or pay in lieu of notice, and respect the employee’s dignity and reputation.
If the employer engaged in conduct that is discriminatory, involved harassment, or violates human rights, the employee may be entitled to further compensation. Employers are legally required to treat their employees in good faith during their employment and the termination process. If you believe that your termination was handled in bad faith, consulting with employment lawyers can help you fully understand your rights.
How Whitten & Lublin can help with bad faith discharge claims?
Our experienced employment lawyers have worked with many clients to negotiate and, where required, litigate cases involving additional damages for bad faith discharge. Our skills, experience, and reputation are widely recognized by both clients and peers, making us one of the GTA’s most recommended labour and employment law firms.
To get clarity and control over your situation, book a consultation now.
Your success is our focus.
If your termination felt personal, or needlessly harsh, it’s worth considering whether your employer acted in bad faith. Legally, a bad faith discharge involves more than just poor treatment, it requires conduct that is dishonest, misleading, or unfairly damaging to your reputation or mental health. This could include fabricating performance issues, terminating you in a humiliating manner, or denying you the opportunity to respond to allegations. These cases are highly contextual. What matters is whether your employer crossed the line between business decision and misconduct. If you suspect they did, we can help you assess what happened and what it may be worth.
Yes and for good reason. Proving bad faith involves more than recounting a difficult experience. The law requires specific evidence showing that your employer’s conduct was not just unpleasant, but unreasonable and damaging. That could mean internal emails, shifting explanations for your dismissal, or a pattern of retaliation. A lawyer’s role is to help you organize these facts into a compelling legal argument and to determine whether your case meets the threshold for aggravated or moral damages. In many instances, what seems like a grey area becomes much clearer once we apply the legal framework.
If you’ve been dismissed in bad faith, you may be entitled to compensation above and beyond standard severance. Courts can award aggravated damages for mental distress, and in some cases, punitive damages if the employer’s conduct was especially egregious. These awards are meant to recognize the emotional and reputational harm caused by an employer who acted without decency or fairness. The amount will vary depending on the severity of the misconduct and its impact on your well-being and future prospects. Our lawyers can help quantify your full entitlements and present a strong case for the compensation you deserve.
Timing matters. Although bad faith discharge claims often fall under broader employment or wrongful dismissal actions, they are still subject to legal time limits typically two years from the date of termination. However, certain factors (like ongoing mental health issues or continued attempts at resolution) may affect how that period is calculated. The sooner we can review your case, the more options you’ll have. Evidence is easier to gather, and negotiations can begin while memories and documents are still fresh. If you believe your employer acted unfairly, don’t wait. Early legal advice gives you the best chance at a successful outcome.
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In need of legal advice? We are committed to treating your case with the care, dedication, and compassion that you deserve. Contact our employment and labour lawyers today to learn how we can help you understand and resolve your workplace legal matter.
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