Why We’re Different

One of the ways we are different from other law firms in Ontario is that our number one focus is to get the MOST amount of money into our clients’ pockets. That often means minimizing the amount they have to pay in taxes—legally.

For example, if they have been wronged, we can try to have a portion of their severance paid as general damages, which are tax-free.

What are General Damages in Employment Law?

Navigating employment law can be daunting for small business owners. Understanding general damages is crucial to avoid costly legal pitfalls.

General damages refer to compensation for non-monetary losses, such as emotional distress or damage to reputation. These often arise in cases involving discrimination or harassment, where the Human Rights Code plays a significant role.

This guide explores how general damages work in employment law and offers practical advice on managing legal costs and preventing claims.

General damages compensate employees for non-economic losses—including:

• Emotional distress

• Mental anguish

• Damage to personal reputation

These damages are not linked to direct financial losses but instead address the intangible impact of an employer’s conduct.

They often arise in cases involving:

• Workplace discrimination

• Harassment

• Wrongful termination

Key factors considered when awarding general damages include:

• The emotional and psychological impact on the employee

• The severity and duration of the employer’s actions

• Any lasting harm to the employee’s reputation

Key Differences: General Damages vs. Other Employment Law Damages

It’s important to distinguish between types of damages:

• General Damages: For non-financial harm (e.g., emotional distress)

• Special Damages: For quantifiable losses (e.g., lost wages, medical bills)

• Punitive Damages: To punish egregious conduct by an employer

Understanding these categories can help business owners assess risks and handle disputes more strategically.

When Are General Damages Awarded? (Human Rights Code and Beyond)

General damages are most commonly awarded in:

• Discrimination claims under the Human Rights Code

• Harassment cases causing psychological harm

• Wrongful dismissals involving reputational damage

The goal is to provide fair compensation for the emotional and reputational fallout of an employer’s wrongful conduct.

Steps to Claim General Damages in an Employment Law Case

Claiming general damages involves five key steps:

1. Assess the harm – Identify if the issue includes non-monetary losses

2. Hire legal representation – An employment lawyer can navigate complex claims

3. Gather evidence – Collect documentation of harm and employer conduct

4. File the claim – Through negotiation, mediation, or litigation

5. Stay engaged – Keep regular contact with your lawyer throughout

Proving General Damages: Evidence and Documentation

To support a claim for general damages, evidence should be:

• Medical/psychological reports confirming emotional distress

• Witness statements from family, friends, or co-workers

• Emails or memos showing employer conduct

• Proof of reputational harm, such as negative press

The more thorough and organized the documentation, the stronger the case.

Contact us to find out if you eligible for getting your severance as general damages.