It has become common for wrongful dismissal litigation to include a tort claim such as intentional infliction of mental suffering, defamation or inducing a breach of contract. Establishing a separate actionable wrong, has long been viewed as necessary to maintain a claim for punitive damages, in light of law that has historically restricted the availability of such an award.

In addition to the employer, individuals involved in the termination of employment are now frequently named as defendants in wrongful dismissal litigation. The increasingly complex nature of employment related litigation often includes allegations of sexual harassment, discrimination on the basis of disability or other forms of discriminatory conduct. If established, these claims may justify an award of Wallace damages (an extension of the notice period because of an employer’s bad faith in connection with the termination of employment), aggravated damages and punitive damages.

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