The Importance of Being Honest and Sensitive: The $50k+ Moral and Punitive Damage Award

Moral & Punitive Damage AwardEmployers may want to reassess how they terminate their employees and the timeframe and manner through which they provide their employees with their termination-related entitlements. Pohl v Hudson’s Bay Company, 2022 ONSC 5230, a recent Ontario decision, demonstrates, amongst other things, what a court may award an employee whose dismissal was conducted by an employer in an unfair manner.  

What Happened?

A 28-year full-time Hudson’s Bay Company Sales Manager in his 50s was terminated on a without-cause basis and immediately walked out the door. He earned an annual salary of $61,254 plus pension contributions and other benefits.

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Employment Law Damages: The Risk of Not Firing Properly

Employers often wonder what the consequences might be if they don’t do everything their lawyer tells them to or, if they don’t get a lawyer at all and just “wing it” when hiring, firing, or dealing with workplace issues like harassment complaints or requests for accommodation. 

Of course, it depends. Not every employee is going to be litigious, but a fair number are. It’s generally pretty easy for employees to get legal consultations and a lawyer to take their “wrongful dismissals” on contingency. The barrier to entry can be quite low.  

So, what can an employer expect? In today’s post, we will go through the various types of employer-worst-case-scenario employment law damages.

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Huge Moral Damages Award

  • January 31, 2018
  • HR

Stacks of Canadian currencyWal-Mart Canada has been hit with the largest award for moral damages in a Canadian employment case ever. In December, the Ontario Superior Court awarded punitive and moral damages of $750,000 to former Wal-Mart Canada employee Gail Galea. Read the full decision here (nearly 100 pages).

Ms. Galea was a senior management employee, hired by Wal-Mart in 2002. She quickly climbed the ranks, eventually earning nearly $500,000 in annual total compensation and the position of Vice-President, General Merchandise.

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