Skip to content

Brought to you by

Dentons logo

Canadian Employment & Labour Law

Making the law work for your workplace.

open menu close menu

Canadian Employment & Labour Law

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

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 practices in labour and employment law at the Montreal office of Dentons Canada LLP. In her practice, Arianne advises employers of all sizes on matters pertaining to collective and individual labour relations, at both provincial and federal levels. Her practices focuses on issues relating to hiring and firing employees, disciplinary measures, individual or collective layoffs, human rights, employment standards, as well as the interpretation and application of collective agreements and employment contracts.

All posts Full bio

RELATED POSTS

  • Employment Standards

New Ontario Job-Protected Leaves

On March 5, 2013, the Ontario government introduced new legislation which, if passed, would create three new job-protected leaves. The […]

By Catherine Coulter
  • Employment Standards

Posting Alert – Ontario Publishes Updated Version of Employment Standards Poster

By Andy Pushalik
  • Employment Standards

Required New ESA Poster for Ontario Workplaces

The Ontario Ministry of Labour has prepared and published a new Employment Standards Act, 2000 (“ESA”) poster entitled “Employment Standards […]

By Catherine Coulter

About Dentons

Dentons is designed to be different. As the world’s largest law firm with 20,000 professionals in over 200 locations in more than 80 countries, we can help you grow, protect, operate and finance your business. Our polycentric and purpose-driven approach, together with our commitment to inclusion, diversity, equity and ESG, ensures we challenge the status quo to stay focused on what matters most to you. www.dentons.com

Dentons boilerplate image

Twitter

Categories

  • Amendments to Safety Laws
  • Confidentiality/Trade Secrets
  • Constructive Dismissal
  • COVID-19
  • Criminal Offences by Employees
  • Employment Standards
  • Executive Compensation
  • General
  • Human Rights
  • Immigration
  • Labour
  • 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

© 2023 Dentons

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