Skip to content

Brought to you by

Dentons logo in black and white

Dentons Canadian Employment & Labour Law

Making the law work for your workplace.

open menu close menu

Dentons Canadian Employment & Labour Law

  • Home
  • About Us
  • Topics
    • Topics
    • Labour
    • Workplace investigations
    • Montréal Newsletter

Fixed Term Contracts: Damages for “trouble and inconvenience”

By Arianne Bouchard
May 10, 2016
  • Employment Standards
Share on Facebook Share on Twitter Share via email Share on LinkedIn

In a recent decision[1], the Superior Court of Quebec held that the termination of a fixed term contract of employment constitutes a breach of contract which may allow for an award of damages for “troubles and inconveniences” suffered by the employee, in addition to damages for early termination.

The Plaintiff had been terminated without cause 15 months before the expiry of the term of his employment contract. The Court concluded that the unilateral termination of the Plaintiff’s fixed term contract was illegal and ordered the Employer to pay the Plaintiff an indemnity equivalent to the wages he should have received until the end of the contract.

The main interest of this case is the Plaintiff’s claim for $50,000 as damages for “troubles and inconveniences”, which required the Court to consider whether such damages could be compensated in the context of a fixed term contract of employment.

In its analysis, the Court first establishes that, while the termination of the Plaintiff was not based on serious grounds, it was not made in an abusive or humiliating fashion. However, the judge accepted that it had nonetheless caused severe stress and anxiety to the Plaintiff, as is almost always the case when a person is terminated.

The Court noted that according to a well-established jurisprudence[2], in the case of an indeterminate term contract, its unilateral termination by the employer is not, in itself, a civil fault, even if it prejudices the employee. Consequently, except when the termination is made in an abusive way, the compensation for troubles and inconveniences is not available to the employee. This rationale is grounded in the principle that either party to an indeterminate term contract of employment may terminate it by giving notice of its termination to the other party, as recognized under Section 2091 of the Civil Code of Quebec.

However, a fixed term contract is binding on the parties until its expiry and may only be unilaterally resiliated for a serious reason. Thus, the employer who, without a serious reason, resiliates the fixed term contract of an employee does not exercise a right, but rather breaches one of its contractual duties. If the evidence shows that this breach of contract caused troubles and inconveniences, such as stress or anxiety, the terminated employee could be compensated for these damages. In this matter, the Court awarded the Plaintiff $5,000 for troubles and inconveniences.

Thus, according to this decision, a distinction must be made between the unilateral resiliation of indeterminate and fixed term contracts with regards to the award of damages for non-pecuniary loss.

[1] Bouasse v. Gemme canadienne PA inc., 2016 QCCS 1263.

[2] 1994 CanLII 5837 (QC CA).

Share on Facebook Share on Twitter Share via email Share on LinkedIn
Subscribe and stay updated
Receive our latest blog posts by email.
Stay in Touch
English, Quebec
Arianne Bouchard

About Arianne Bouchard

Arianne Bouchard is the national co-leader of the Employment and Labour group based in the Montreal office. In her practice, Arianne advises employers of all sizes on matters pertaining to collective and individual labour relations, at both provincial and federal levels.

All posts Full bio

RELATED POSTS

  • Employment Standards

Another Ontario Termination Clause Decision in Favour of Employees…

The Ontario Divisional Court recently affirmed the lower court’s decision in the case of Miller v. A.B.M., an important case […]

By Catherine Coulter
  • Employment Standards

The Duty to Provide Reasonable Notice of Termination Cuts Both Ways

By Catherine Coulter
  • Employment Standards
  • Labour
  • Privacy

Access to employee medical records: a changing legal framework

By Sarah-Émilie Dubois

About Dentons

Redefining possibilities. Together, everywhere. For more information visit dentons.com

Grow, Protect, Operate, Finance. Dentons, the law firm of the future is here. Copyright 2023 Dentons. Dentons is a global legal practice providing client services worldwide through its member firms and affiliates. Please see dentons.com for Legal notices.

Check out more at Dentons.com

New equal treatment requirements for federally regulated employers

Canada: Federally regulated employers are now subject to new equal treatment requirements that impact how employees of different statuses can be compensated. [...]

Ontario Employment and Labour Fall seminar

Canada: On Wednesday, October 7, 2026, Dentons’ Employment and Labour team hosted an in-person fall seminar in Toronto, bringing together employers and HR professionals to discuss the legal developments and [...]

What you missed this summer

Canada: Employment law continues to evolve across Canada, and recent decisions and legislative changes are creating new considerations for how employers manage their workplaces, employees and employment agreements. Here are [...]

Categories

  • Amendments to Safety Laws
  • Caselaw Developments
  • Confidentiality/Trade Secrets
  • Constructive Dismissal
  • COVID-19
  • Criminal Offences by Employees
  • Employment Standards
  • Executive Compensation
  • General
  • Human Rights
  • Immigration
  • Labour
  • Montréal Newsletter
  • Occupational Health and Safety
  • Pay Equity
  • Pensions and Benefits
  • Privacy
  • Restrictive Covenants
  • Union Issues
  • Workers' Compensation
  • Workplace investigations
  • Wrongful Dismissal
  • WSIB

Subscribe and stay updated

Receive our latest blog posts by email.

Stay in Touch

Dentons logo in black and white

© 2026 Dentons

  • Legal notices
  • Privacy policy
  • Terms of use
  • Cookies on this site