The Federal Court has issued its decision in the PSAC challenge to the statutory caps on damages for pain and suffering and for willful or reckless discrimination under the Canadian Human Rights Act (CHRA). The Court has upheld the existing limits, maintaining the $20,000 cap for pain and suffering and the additional $20,000 cap for instances of willful or reckless discrimination. 

Since 1998, the CHRA has limited the compensation available to victims of discrimination in federally regulated workplaces. These caps, unchanged for over 25 years, have not even been adjusted for inflation. They have been widely criticized for failing to reflect the serious and lasting impacts of discrimination based on race, gender, disability, and other protected grounds. Unlike other legal claims — such as wrongful dismissal or defamation — where damages are not capped, victims of discrimination under the CHRA face an absolute ceiling on their compensation. 

“The arbitrary cap on damages denies full recognition of the harm caused by discrimination and leaves federal workers with lesser remedies than some of their provincially regulated counterparts,” said Sharon DeSousa, PSAC National President. ‘’We will not allow this injustice to go unchecked. Despite this setback, PSAC we will continue to advocate for workers who have been subjected to discrimination to be made whole.” 

The Court’s Ruling 

In its decision, the Federal Court found that the statutory limits on damages under the CHRA are constitutional and do not violate the Charter’s equality provisions. 

While PSAC argued the caps reinforce disadvantage and don’t reflect the real harm caused by discrimination, the Court ultimately decided that any changes to the caps should be made by Parliament, not the courts. PSAC will review the court’s ruling and consider its legal options. We will also keep pushing for legislative change to ensure fair compensation for people who experience discrimination. 

What This Means for Workers 

The ruling means that the maximum compensation for pain and suffering and for wilful or reckless discrimination under the CHRA remains unchanged at $20,000 each. While the Tribunal can award additional remedies — such as lost wages, expenses, and orders to cease discriminatory practices — the overall cap on damages remains in place. 

PSAC, representing over 240,000 workers, argued that these limits violate the equality rights guaranteed by the Canadian Charter of Rights and Freedoms. The union argued that the caps increase disadvantage, do not reflect the harm suffered, and weaken the ability of human rights laws to prevent and remedy discrimination. 

The Ongoing Fight for Fair Compensation 

Legal experts and advocates — including former Supreme Court Justices Gérard La Forest and Louise Arbour — have long called for the removal of these caps, noting that they are “meager” compared to other jurisdictions and act as a deterrent to filing complaints. Some other provincial human rights regimes (such as Ontario and British Columbia) do not have such arbitrary limits, and decision-makers in these other contexts are able to award significantly higher damages for comparable harms. 

PSAC remains committed to advancing equality and justice for all workers and will continue working to ensure that people who experience discrimination receive full and fair compensation—from lobbying for legislative change to legal challenges.  

For more information 

Read PSAC’s statement of claim (English Only) 

Read the government statement of defence (English only)