One of the ways we are different to other law firms in Ontario is that our number one focus is to make sure we can get the MOST amount of money into our clients pockets. This often means how can we minimize the amount they have to pay in taxes legally. One way is that if they have been wronged – we can try to get a portion of the money paid to them in general damages which is tax free.
Navigating employment law can be daunting for small business owners. Understanding general damages is crucial to avoid costly legal pitfalls. General damages in employment law refer to compensation for non-monetary losses, such as emotional distress or damage to reputation.
These damages often arise in cases involving discrimination or harassment, where the Human Rights Code plays a significant role. Knowing when and how these damages are awarded can help you manage risks effectively.
This guide will explore the intricacies of obtaining general damages in employment law cases. We’ll also provide practical advice on managing legal costs and preventing claims. By understanding these concepts, you can protect your business and foster a positive workplace environment.
What are General Damages in Employment Law?
General damages in employment law compensate employees for non-economic losses. These losses often include emotional distress, mental anguish, and harm to personal reputation. Such damages are not tied to a direct financial loss but instead address the intangible impact of the employer’s actions.
In employment disputes, general damages commonly arise in situations involving workplace discrimination, harassment, or wrongful termination. These cases often fall under the jurisdiction of the Human Rights Code, which protects against various forms of discrimination.
Understanding what general damages encompass is important for small business owners. It can help you grasp the broader implications and potential financial exposure in employment disputes.
Key elements considered in awarding general damages include:
- Emotional and psychological impact on the employee
- Severity and duration of the employer’s conduct
- Any lasting effects on the employee’s reputation
By comprehending these aspects, you can better navigate the complexities of employment law and improve your risk management strategies.
Key Differences: General Damages vs. Other Employment Law Damages
Understanding the distinctions between general damages and other employment law damages is crucial for managing potential claims. General damages focus on non-monetary losses like emotional distress and reputation harm. In contrast, special damages cover quantifiable financial losses such as lost wages or medical expenses.
Another category is punitive damages, which aim to penalize and deter egregious employer conduct. These damages are separate from compensatory damages and can significantly increase liabilities.
Here’s a breakdown of damage types:
- General Damages: Compensate for non-economic losses (e.g., emotional distress).
- Special Damages: Cover tangible financial losses (e.g., lost wages).
- Punitive Damages: Penalize gross misconduct by the employer.
This understanding can help small business owners address employee disputes more strategically, safeguarding their financial interests while maintaining compliance with employment law.
When Are General Damages Awarded? (Human Rights Code and Beyond)
General damages in employment law cases are often tied to violations of the Human Rights Code. This is especially true for issues of discrimination and harassment. Such awards aim to compensate for the emotional and reputational harm suffered by the employee.
General damages may also arise in cases of wrongful dismissal where the conduct was particularly damaging. If an employer’s actions severely impact the employee’s mental state, general damages are considered.
There are several scenarios where general damages might be awarded:
- Discrimination under the Human Rights Code
- Harassment cases resulting in psychological harm
- Wrongful dismissal with reputational damage
Understanding when these damages apply can help business owners manage risks. Awareness of these scenarios ensures better handling of employment disputes and promotes a fair workplace environment.
Steps to Claim General Damages in an Employment Law Case
Claiming general damages in an employment law case involves a structured approach. First, assess if the case involves non-monetary losses, like emotional distress or reputational damage. This initial evaluation determines if pursuing general damages is warranted.
Next, secure legal representation to navigate the complexities of the claim. An experienced employment lawyer can provide guidance and help build a strong case. Their expertise ensures that all necessary legal bases are covered.
Third, gather evidence supporting the claim of general damages. Documentation is crucial. Records of communications, witness statements, and any direct impacts of the employer’s actions are vital for substantiating claims.
The fourth step involves filing the claim either through negotiation or court proceedings. Exploring options such as mediation can help resolve issues without litigation. This step requires careful deliberation of potential outcomes and costs.
Finally, throughout the process, maintain open communication with legal counsel. Consider the advice offered and adjust strategies if necessary. This ongoing dialogue can be critical in securing a favorable outcome for the claimant. By following these steps, claimants increase their chances of successfully obtaining general damages in employment disputes.
Proving General Damages: Evidence and Documentation
Proving general damages in an employment law case requires comprehensive evidence and well-organized documentation. It’s essential to show how the employer’s actions resulted in emotional distress or reputational harm. This often involves presenting specific and credible evidence.
Critical evidence can include:
- Medical or psychological reports detailing emotional distress
- Testimonies from colleagues or family members observing changes
- Records of any correspondence relating to the harmful actions
- Documentation of reputational harm, such as negative media articles
Each piece of evidence helps illustrate the actual impact of the employer’s actions. Collecting this information should be methodical and thorough. The more detailed the documentation, the stronger the case for claiming general damages. By presenting a clear and supported narrative, claimants can effectively demonstrate the extent of their suffering and increase their chances of a favorable outcome.
Managing Legal Costs and Risks for Small Business Owners
Navigating employment law can be complex and costly for small businesses. Understanding fee structures is vital to managing legal expenses effectively. Hiring a lawyer with a clear and transparent fee agreement can prevent unexpected financial surprises.
Small business owners should consider different billing options. These can include:
- Hourly rates for specific advice or services
- Flat rates for straightforward or routine legal tasks
- Contingency fees based on a percentage of the awarded settlement
Proactively addressing potential legal issues is another key strategy. Regularly reviewing employment policies and practices can help mitigate risks. Keeping up-to-date with changing laws ensures compliance and reduces the potential for claims.
Additionally, investing in training programs for employees on legal and workplace rights can foster a positive environment. This approach not only limits legal exposure but also promotes a culture of respect. Overall, careful planning and education are crucial to minimizing legal costs and risks.
Regularly reviewing and updating company policies is essential. This ensures alignment with the latest employment laws. Written policies should be clear and accessible to all employees.
Emphasize the importance of documentation. Keeping thorough records of employee interactions can provide evidence in case of disputes. This proactive approach helps to safeguard your business from potential legal claims.
Contact us to find out if you eligible for getting your severance as general damages.

Faisal completed his Juris Doctor from University of Ottawa. He has extensive work experience at Deloitte, Scotiabank and CIBC. Faisal’s approach is grounded in a commitment to his clients’ objectives. He understands how frustrating the court process is for clients and fights to get you the best settlement possible.