Moral Damages in Ontario explained
What are “moral damages”?
“Moral damages” (often called aggravated damages) are compensation for the mental distress caused by an employer’s unfair or bad-faith conduct in the way they dismiss you—not for the mere fact of losing the job. The Supreme Court says ordinary hurt feelings from any termination aren’t compensable; the conduct has to go further (e.g., untruthful, misleading, or unduly insensitive).
Historically, courts added extra months to notice for bad faith (“Wallace bump”). In Honda v. Keays, the Supreme Court replaced that with a direct dollar award tied to the actual mental distress proven.
How are moral damages different from other damages?
Common-law notice: pay in lieu of notice for the time a job search should reasonably take. Separate from moral damages.
Punitive damages: to punish and deter truly malicious or high-handed conduct; they are not compensatory.
Human-rights (Code) damages: compensate for violation of Code rights (e.g., harassment/discrimination). You can receive both moral and human-rights damages when they protect different interests.
What do you have to prove?
You must show mental distress beyond the normal upset of being fired, caused by the employer’s bad-faith manner of dismissal. Medical evidence helps, but Ontario courts say it’s not strictly required if there’s credible evidence (e.g., from you and family) of real distress. Recent ONCA guidance confirms aggravated/moral damages can be awarded without expert medical proof.
Examples of conduct that has attracted moral damages
Cursory or biased investigations and a “cold, brusque” termination, amid sexual-harassment concerns (moral damages upheld at $60,000).
Walking a long-service, no-cause employee out the front door, delaying ROE/termination pay (moral $45,000 + punitive $10,000).
Threatening litigation and alleging cause without basis, using a countersuit to intimidate (moral $25,000 + punitive $100,000 on appeal).
Egregious pre- and post-termination conduct toward a senior executive (moral damages as high as $200,000–$250,000 in exceptional cases).
Typical awards cluster in the $10k–$75k range; six-figure awards are outliers reserved for especially bad facts.
What evidence helps?
Your own testimony about sleep/appetite changes, anxiety, humiliation, etc.
Corroboration from family/friends, emails, journals, and timing of symptoms.
Medical notes (if any)—useful but not essential.
How moral damages fit with your severance
If your termination clause is invalid (or the employer repudiates it), you may get common-law notice plus moral damages if the manner of dismissal crossed the line. Courts also look at pre- and post-termination conduct if it forms part of the dismissal process.
Quick checklist
Write down who said what, when, and keep emails/texts.
Ask (politely) for reasons in writing; note any contradictions.
If there’s harassment/Code issues, raise them in writing.
Don’t sign a release at the termination meeting—get advice first.
Ontario-specific info only; not legal advice.