The appellant employer appealed a trial judgment awarding the respondent employee 18 months' notice for wrongful dismissal, damages for mental distress, punitive damages, and solicitor-and-client costs.
The employee had suffered a workplace injury and was persistently harassed by the employer to return to work, causing her severe emotional distress and physical illness.
The Court of Appeal reduced the notice period to 12 months and set aside the punitive damages and costs awards.
However, the Court upheld the $15,000 award for mental distress, finding that the employer's extreme and insensitive harassment constituted the independent tort of intentional infliction of mental suffering.