Honda and damages for the manner of dismissal

In Honda Canada Inc. v. Keays, 2008 SCC 39, the Supreme Court addressed damages associated with the manner of dismissal. It rejected treating additional notice as the remedy for bad-faith dismissal conduct and emphasized compensation linked to proven loss. The Court set aside the additional damages awards challenged in the appeal.

Mr. Keays' employment history included disability-related absences and disputes about medical information before termination. The litigation raised questions about notice, the employer's conduct, compensatory damages, and punitive damages. The Supreme Court's reasons separated these issues and corrected the approach to additional compensation for the manner of dismissal. That separation is important: the notice entitlement is not simply increased by a standard number of months whenever an employee describes the process as insensitive or unfair.

The practical lesson is that ordinary distress from losing a job and legally compensable harm are different questions. Preserve the dismissal communications and evidence supporting any alleged injury caused by the employer's conduct. Punitive damages require a separate, exceptional legal basis and are not an automatic addition to a termination claim. A careful assessment considers the particular conduct, causation, proof, and the appropriate forum rather than adding a standard amount for unfairness.

Prepare the evidence according to the loss alleged. Keep the termination communication, relevant medical and accommodation exchanges, and records supporting a causal connection between particular conduct and the harm claimed. Do not assume that a human rights allegation, ordinary upset, and punitive damages all follow from the same legal test. The available forum and remedies also need assessment. A careful review distinguishes compensation that replaces earnings from a supported claim concerning the manner of dismissal, and identifies where additional professional or medical evidence may be required rather than adding an arbitrary amount to the demand.

Sources

• Honda Canada Inc v Keays 2008 SCC 39
• Ontario guide to termination of employment

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General Ontario legal information, not legal advice for your matter, and reading it does not create a retainer. Sources checked 15 October 2026: check the current law, forms and dates before you act.

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This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.