Bad faith dismissal.

Canadian employees facing the pain of losing their jobs have the sympathy of the Supreme Court of Canada, which suggests that employers had better be sympathetic to the plight of those they dismiss as well. This fall, the Court released a judgment that says that employers owe employees a duty to handle dismissals with fairness and decency. If they do not, they can be liable for extra damages added on to the notice period. The court dealt with the case of a Winnipeg man who was enticed away from a secure position with another company and was dismissed just days after being complimented on his job performance. Justice Iaccobucci wrote: "At a minimum, I believe that in the course of dismissal employers ought to be candid, reasonable, honest and forthright with their employees and should refrain from engaging in conduct that is unfair or in bad faith by being, for example, untruthful, misleading or unduly insensitive. The judge noted that when employees lose their jobs, they are particularly vulnerable because work in many cases not only provides financial support but also defines people and their roles in society. "A person's employment is an essential component of his or her sense of identity, self-worth and emotional well-being. Accordingly, any change in a person's employment status is bound to have far-reaching repercussions." The decision also clarified several important other points in employment law:

* employers are entitled to fire employees without cause and without "good faith" reasons as long as they give reasonable notice or compensation in lieu of reasonable notice;

* employees are not entitled to be compensated for injured feelings and emotional upset that arises as a result of the fact of the dismissal, as opposed to the manner of the dismissal;

* the court unanimously refused to recognize a new tort called "bad faith discharge" which would arise when there is evidence that an abusive dismissal amounts to breach of an implied contractual obligation to use good faith when dealing with employees.

Wallace v. United Grain Growers SCC, full citation not available.