CanadaWhat damages can I claim if I am wrongfully dismissed?
If you are a non-unionized employee covered by the Canada Labour Code with at least 12 months’ service and were unjustly dismissed, you may claim reinstatement or compensation — typically up to 180 days’ wages — but not punitive or aggravated damages unless exceptional circumstances apply.
What the Law Says
The Canada Labour Code provides a specific remedy for non-unionized employees who believe they were dismissed unjustly — a process distinct from common law wrongful dismissal claims.
Under the Canada Labour Code, non-unionized employees with at least 12 months of continuous employment may file an unjust dismissal complaint if they believe their termination was unjust. This process is available instead of — and generally excludes — common law wrongful dismissal claims for federally regulated workers.
The Code does not entitle employees to 'damages' in the traditional sense (e.g., for mental distress or punitive harm), but rather to remedies like reinstatement or compensation for lost wages. The maximum compensation is capped at 180 days’ wages, calculated based on regular earnings before dismissal.
Importantly, the Code’s unjust dismissal regime reflects a statutory standard: employers cannot simply dismiss without cause and pay severance — they must justify the dismissal as fair and reasonable in the circumstances.
Statutory TextNon-unionized employee with 12 months' service who believes dismissal was unjust may file a complaint.
— Canada Labour Code, s. 240 — Unjust dismissal complaint
What Courts Have Said
The Supreme Court of Canada has clarified that the Canada Labour Code establishes a substantive right against unjust dismissal — not merely a procedural safeguard.
The Court held that under s. 240 of the Canada Labour Code, non-unionized employees cannot be dismissed without cause — even with generous severance — unless the dismissal is justified. A dismissal without cause is presumptively unjust, and employers bear the onus of proving fairness.
Although decided under common law (not the Code), this foundational case established that wrongful dismissal damages aim to put the employee in the position they would have been in had the contract been performed — subject to the duty to mitigate losses, which the employee must prove they fulfilled.
What to Do
Confirm you are federally regulated and have at least 12 months’ continuous service.
File an unjust dismissal complaint with the Canada Labour Program within 90 days of termination.
Gather evidence showing the dismissal lacked justification (e.g., no performance issues, inconsistent discipline, or procedural unfairness).
Be prepared to demonstrate efforts to mitigate losses (e.g., job search records) if seeking compensation.
Consider requesting reinstatement — it is the primary remedy under s. 240, though compensation is more commonly awarded.
Sources
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JapanNot legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.