What are some examples of conduct that could give rise to mental distress or moral damages?

In Honda v. Keays, Justice Bastarache, writing for the majority, noted at paragraph 59 that examples of conduct that could give rise to mental distress or moral damages might include such things as “attacking the employee’s reputation by declarations made at the time of dismissal, misrepresentation regarding the reason for the decision, or dismissal meant to deprive the employee of a pension benefit or other right, [such as] permanent status”.

According to Honda v. Keays, mental distress or moral damages are awarded under general contractual principles, on the basis that at the time the parties entered into the employment contract they will be deemed to have contemplated that a breach of the duty of good faith and fair dealing would give rise to damages where the unfair or bad faith manner of dismissal causes distress to the terminated employee. Such damages are compensatory and aim to compensate the employee for the distress suffered, with the quantum being set by the court with reference to previously-decided case law and the nature and severity of the distress suffered by the employee.