This is just general information, not legal advice. If you need legal advice about your specific situation, we urge you to find a lawyer who can help you.
We’re going to tell you an important secret. Something that CEOs, HR people, and lawyers already know, but you probably don’t.
If you’ve been badly treated at your workplace to the point where you feel you need to quit your job, you may be able to get your employer to give you money by sending them what’s called a demand letter.
A demand letter is not guaranteed to get you money. Some employers will ignore it, or just tell you no. But it works often enough to make it worth trying.
How demand letters work
A demand letter is just an ordinary letter or email that you or your lawyer sends to your employer. It describes the bad treatment you experienced at work, and asks your employer to give you money in exchange for you agreeing to not sue them.
The premise of a demand letter is that you have been harassed to the point where it’s impossible for you to do your job, which means you need to quit, and the whole thing is your employer’s fault for not stopping the harassment.
You send a demand letter when you’re planning to quit—or, in some cases, after you’ve been fired. If you’re staying at work, you might send a demand letter if, for example, a co-worker has harassed you, causing a psychological injury. You could send a demand letter asking your employer to reimburse you for the money you’ve spent on counselling.
Here’s what usually happens:
- You’re badly treated at work, and your employer doesn’t fix the problem. Maybe you complain, and they punish you.
- You decide you need to quit. Or, you get fired.
- You send a demand letter to your employer.
- Your employer might ignore the letter, but usually they’ll reply. They may agree to give you everything you asked for, or some of it, or they reject your entire request.
- You accept what they’ve offered, or push for more. You might go back and forth for a while, negotiating.
- Eventually one of two things happens. Either you accept an offer, in which case you then sign a release letter, agreeing you will not take them to court. This is called a settlement. Or, you reject their offer (or there is no offer), in which case you need to decide whether to proceed with a lawsuit.
Why demand letters are great
Going to court is slow and expensive. Lots of people never even talk with a lawyer, because they know they can’t afford to pay for a legal dispute that might last years.
That’s where the demand letter comes in. A demand letter is essentially a threat. You are saying (or implying) that, if your demands aren’t met, you’ll take your employer to court.
But the important part is you don’t have to actually go to court. If you send a demand letter that gets ignored or rejected, you can stop right there and that’s the end of it.
This means that a demand letter is a pretty cheap, pretty easy way to see if you can get your employer to give you some money. If you can, that’s great. If you can’t, there’s no real harm done.
The one major cost of a demand letter is the lawyer who writes it for you. You can write a demand letter yourself, but if you can afford it, it’s better to have a lawyer do it. Lawyers know how to phrase things in a way that will make it as likely as possible that your employer will pay up.
Usually a lawyer will charge a flat fee to write the letter. Between $200 and $500 is common, but a lawyer might charge more if your matter is complicated.
We couldn’t find any Canadian statistics on how well demand letters work. But one U.S. survey found that almost 60% of people who sent a demand letter received a settlement, compared with only 36% of people who didn’t.
Why your employer might agree to give you money
In theory, your employer would only give you money if they thought you had a strong legal case. But in practice, there are lots of other reasons employers might do it:
- They want to avoid a long and expensive court fight.
- They would rather pay a smaller amount of money now, instead of what might be a bigger amount later (if you win a lawsuit).
- They don’t want to be embarrassed in public by whatever gets said in a court case.
- They don’t want their other employees to be mad at them for how they treated you.
- They don’t want potential new employees to hear they’re a bad employer.
- They don’t want you to be mad at them.
- They feel bad about what happened to you, and want to make it right.
Here are some things that might mean you’re more likely to win a settlement:
- Your employer thinks you’re good at your job.
- You’ve worked there longer than two years.
- Other employees, or customers/clients, like and respect you.
- There’s someone in management who knows you personally and likes you.
- You think your employer feels bad about how you’ve been treated.
- If what happened to you became public, people might be angry with your employer.
- You’re female, racialized, queer, or disabled.
What a demand letter usually looks like
Here’s what a demand letter typically looks like. They are usually a maximum of four pages.
Salutation
It’s important to direct the letter to the right person. Usually the more senior they are, the better—like the head of HR, the CEO, or maybe the general counsel.
Statement that you are leaving, why, and when
Explain a little about yourself, like what your job is at the company, when you started work, and how long you have worked there. If you have gotten good feedback on your work, you’ll want to say that too.
It’s important to be very clear that you are leaving your job. You should say when your last day of work will be. Usually that’s right away (“my resignation is effective immediately”), though sometimes it’s one or two weeks in the future.
Your lawyer can help you explain exactly why you’re leaving. Normally it’s because your employer has not resolved the harassment problem and so your workplace is unsafe. Sometimes it’s also because your employer has retaliated against you for complaining about being harassed. See Getting punished for complaining and how to protect yourself.
Factual statement of what happened and how it hurt you
Here the letter will describe the harassment you’ve experienced and your efforts to report it to your employer. Sometimes this part will be just a few sentences, and sometimes it’ll be several pages.
You’ll also describe how the harassment has hurt you: cost you money and/or caused you pain and suffering. You should write about any physical or mental health symptoms you’ve experienced, any medical diagnoses you’ve received (for example, anxiety or depression), any medications you’ve been prescribed, and any other harms you’ve suffered. If you feel you have been punished for complaining, you should describe that too.
Description of what you want
In this part of the letter, you’ll describe exactly what you want. This almost always includes money. Generally, you should ask for more money than you really expect to get. Some people say you should figure out the minimum amount you want, and ask for double.
You can also ask for things other than money, like a positive reference letter. Sometimes people ask to be allowed to describe their departure as a resignation rather than a dismissal. Sometimes they want to write the announcement that will go out saying they are leaving. You might ask to keep company property, like a laptop or cellphone. Usually it’s pretty easy to get your employer to agree to your non-money asks.
Any practical information about company property
Because you’re resigning, you need to tell your employer what company property you have, and how and when you plan to return it. It’s normal for your employer to expect you to return any company property, usually within a week or so of your last working day. Some employers will insist that you return their property, and in that case you definitely need to do it.
Date by which you would like a reply
It’s important to include a reply-by date, so that, if your employer plans to ignore your letter, you will know. Usually the date is about a week in the future, but sometimes it’s as short as a few days, or as long as two to three weeks.
More about demand letters
What is the right tone?
The letter should be factual and polite. It shouldn’t sound angry. It should be written in a more formal way if it’s signed by your lawyer, and it can be less formal if it’s signed by you. If your relationship with your employer is hostile, the letter should still be courteous. If your relationship has been mostly positive, the letter can be friendly.
Remember that sending a demand letter is not actually a hostile act. What you’re saying in the letter is that, even though you have a legal claim, you are willing to resolve it in a friendly fashion, rather than by going to court.
Usually it’s better to keep your options open rather than committing to a specific course of action. But sometimes (especially if your employer is hostile) it might save time to say exactly what you will do if your demands aren’t met. Your lawyer can help you figure this out.
What should my letter ask for?
Usually the letter should give a specific amount. This saves time, because your employer doesn’t have to guess what you want.
It’s also normal to ask for things like a positive reference letter. It’s normal to ask to keep company property. (Although employers sometimes say no.) You could also ask for an apology from your employer or from the harasser. You could ask that the harasser be required to attend sexual harassment training.
If I send a demand letter and I don’t get any money, does that mean I need to go to court?
No. Nothing about sending a demand letter commits you to actually going ahead with a lawsuit. But your letter is more likely to be successful if your employer believes you might go to court.
How should I deliver a demand letter?
You can send it by registered mail if you want to be able to prove it was received, but it’s not necessary. You could also hand deliver a copy.
It’s increasingly common to send a demand letter by email. If you do this, you should send it from your personal account, not your work account, and ask your employer to confirm they have received it. If they don’t confirm it, you will want to then deliver the letter in some other way.
If I send a demand letter and it’s ignored or rejected, what should I do?
You might decide to write a follow-up letter that restates what you want, and what you’ll do if you don’t get it. You might decide to start a legal case. Or you could decide to do nothing. It’s entirely up to you.
If I send a demand letter, what’s the worst thing that could happen?
Your employer might talk negatively about you to other people. They might refuse to give you a good reference. The worst-case outcome is probably that they are permanently angry with you, and you have burned a bridge and will never have a good relationship with them again.
Here are some example demand letters. To use one, copy it into your own document or email, then change the names, dates, and details to fit your situation.
Demand letter from a person harassed by a co-worker
September 20, 2022
Dear Lisa Levasseur:
I’m writing to let you know that Widgets Canada has failed to meet its obligation to provide me with a harassment-free work environment. As a result, I am left with no choice but to stop working for you. My last day will be Friday, October 7, 2022.
As you know, I have worked at Widgets Canada for more than seven years, since January 2015. I began as a project administrator, and am now a senior project manager. My performance appraisals have always been positive, and I have very much enjoyed contributing to the company’s success.
Sadly, however, beginning in June of 2021, my colleague Mitch Davies began to sexually harass me. The harassment has continued ever since, despite my many attempts to urge the company to investigate and stop it.
It has been 15 months since Mitch Davies first started to harass me. Since the harassment began, I have sent 24 emails to Shawna Fraser in HR, documenting individual instances of harassment. I have had four meetings about the harassment with my supervisor, Mike Masson, and seven meetings with Shawna.
In November 2021, my GP prescribed me anti-anxiety medication because of stress I was experiencing due to the harassment, and I have been taking that medication regularly since then. I have also found myself needing to take sleeping medication to cope with stress-induced insomnia. In July 2022, my GP advised me to take a two-week stress leave because of the harassment, which I did. Earlier this month, I was advised to take an additional two-week stress leave, which I have also done.
I am deeply saddened that, despite my repeated requests, Widgets Canada has not done what’s necessary to provide me with a safe and harassment-free work environment. My mental and physical health have seriously suffered, and the situation is intolerable. Widgets Canada is not a safe work environment for me.
Therefore, upon the advice of my doctor, my last day with Widgets Canada will be Friday, October 7, 2022. My doctor has advised me to not return to the office, and so from now until October 7, I will be working from home.
On or before October 7, I would like to receive a severance amount representing my unused vacation pay, plus 17.5 months of salary. The 17.5 months represents one month of severance for each year in which I’ve worked for you, plus 10 months of salary as compensation for how difficult the past 10 months have been for me, the additional costs I have needed to incur because of it (e.g., medication), and the likelihood that it will take me some time to find new work, and that I may need time to rest and recover before I do so.
I would also like to receive a positive letter of reference.
I have a company laptop at home, but no other company property. I will send the laptop to HR by courier on October 7.
Thank you for your attention to this matter. If I do not receive a response from you by September 30, I’m afraid I will need to evaluate my legal options. I would do that only reluctantly. I am hopeful we will be able to resolve this situation in a way that feels fair and reasonable to everyone.
I wish you all the best.
Sincerely,
Kayla Martin
Demand letter from a bartender harassed by customers
September 20, 2022
Dear Derrick Barkley:
I am writing to inform you that I am resigning from my position as a bartender with the Canadian Bar and Grill, with immediate effect. I will not be returning to the Canadian Bar and Grill.
Please accept this letter as formal notice of my resignation.
I am resigning because of the repeated harassment I have experienced while working at the Canadian Bar and Grill, which I have reported to you, and which you have made no attempts to protect me against.
The most recent harassment, as you know, happened last Friday, September 16.
When I told you what was happening, I was frightened and crying. I expected you to either call the police, or to intervene yourself to make the customers who were harassing me leave. When you did neither, I was terrified. The remainder of my shift was deeply unpleasant, and I am too afraid to come back to work. It is not a safe environment.
The Canadian Bar and Grill has an obligation to provide a harassment-free environment for its employees. You did not live up to that obligation last Friday, nor on the previous three occasions when I have reported sexual harassment to you. As a result, I believe our employment relationship has irrevocably broken down, and that is why I am resigning.
I did not expect to have to leave this position, and it will take me some time to find a new job that fits with my schedule. Therefore, I am asking you to provide me with the equivalent of four weeks of pay, which is $2,000.
If you are not willing to provide me with this, then I will need to explore my options. In that case, I will be speaking with the police, the Ministry of Labour, and a lawyer.
Please acknowledge receipt of this letter before midnight tomorrow, September 21, 2022.
Yours sincerely,
Courtney Hopps
Demand letter from a person harassed by co-workers and their supervisor
October 17, 2022
Dear Rahim Moda:
I am writing to let you know that I am regretfully leaving my position with the Canada Packaging Plant, effective immediately.
As you know, I have been subjected to continuous harassment at the Canada Packaging Plant since I began work at our Brampton warehouse in July 2022. Starting in July, I have been harassed on a daily basis by multiple co-workers and by Eric Beyer, my supervisor.
I have recounted the details of this harassment to you previously, on multiple occasions. You can find attached a timeline documenting each incident of harassment and my reports of it to you.
The Canada Packaging Plant has a responsibility to provide its employees with a safe work environment, and when I reported the harassment to you, you were obligated to take steps to address it. You did not. In fact, rather than addressing the problem, the Canada Packaging Plant retaliated against me for reporting it by reducing my shifts.
That is plainly evident in the records. I began work at the Canada Packaging Plant on July 4, 2022. I made my first formal complaint of harassment on August 15, 2022. From July 4 to August 15, I was scheduled for 37.5 hours per week on average. From August 15 to the current schedule, I have been scheduled for 24.5 hours per week on average. Nobody has given me an explanation for the reduction in my hours and, in fact since August, two other people have been hired doing the same work I do, and they are both receiving more hours than me.
Further, on October 14, Eric Beyer told me he could not “guarantee” me future shifts once this current schedule is finished.
It is clear that I am being retaliated against for reporting that I am being harassed.
I am leaving my employment with you because the Canada Packaging Plant is not a safe workplace for me due to the near-continuous harassment I have experienced here, and because I consider myself constructively dismissed due to the reduction in my work hours. By unilaterally reducing my hours, you have ceased to meet your obligations under our employment contract and are therefore effectively terminating the contract.
I am asking for compensation for your failure to provide me with a safe work environment and the resultant strain and stress I have experienced, for the lost income I have suffered due to the reduction in my hours, and for the future income I will lose for the period in which I am job-hunting. I believe $12,000 would be a fair amount.
I am asking you to pay me $12,000, before October 31, 2022. If you do not, I will be forced to explore my legal options.
Please reply to this letter at your earliest convenience. I would appreciate hearing from you before the end of the week.
Thank you.
Christine Kandris
Demand letter from a lawyer on behalf of a person harassed by co-workers
This is an example of a demand letter written by a real lawyer. You should not try to write a letter like this yourself. Please don’t pretend to be a lawyer if you’re not!
November 15, 2022
Dear Ms. Ault-Smith:
Zahra El Guindi has retained me with respect to her employment at Large Canadian Accounting Firm (hereinafter “LCAF”).
Since June of 2022, Ms. El Guindi has been employed by LCAF as a junior auditor.
Within weeks of beginning work at LCAF, Ms. El Guindi began experiencing harassment by her co-workers, on the basis of her sex, sexual orientation, gender expression, gender identity, religion, and race.
Two weeks after Ms. El Guindi’s start date, in the last week of June 2022, co-worker Jannick Lavigne asked Ms. El Guindi if she was “actually a man.” Later that week, Ms. Lavigne asked Ms. El Guindi “what is [her] real name,” and when she changed it.
On July 5, Ms. Lavigne and co-worker Danielle Lindsay cornered Ms. El Guindi near the copy machine and asked her intrusive questions about her personal life, including who she was dating, what kind of bathing suit she wore at the cottage, and whether her family approved of her “living as a woman.” Further, Ms. Lindsay said that “there is no way that your parents approve, because they are Muslim,” and Ms. Lavigne agreed.
Ms. El Guindi was embarrassed and angry, and that same day she reported what happened to her supervisor, Annie Persaud. However, it appears Ms. Persaud took no action.
The next day, another co-worker, Cindy Leung, in a meeting with Ms. El Guindi and Ms. Persaud, referred to Ms. El Guindi as “he,” saying to Ms. Persaud “I think he has that file.” Ms. Leung did not correct herself, nor did Ms. Persaud correct her.
This was upsetting to Ms. El Guindi, and immediately after the meeting, she complained to Ms. Persaud, who told her to “just let it go.”
In mid-July, Ms. Persaud told Ms. El Guindi she would be assigned a particular file, but less than a week later, the file was assigned to a different auditor. The next day, Ms. El Guindi’s co-worker Sarah Hoffman told her she had heard this happened because “that client is conservative, and [Ms. Persaud] felt like it might not be a good fit for you.” When Ms. El Guindi asked why, Ms. Hoffman said she believed it was either because Ms. El Guindi is trans or dark-skinned, or for both reasons.
It is clear that Ms. El Guindi, during her time with LCAF, was repeatedly harassed and discriminated against on the basis of her sex, sexual orientation, gender expression, gender identity, religion, and race. It is clear that LCAF failed to provide her with an environment free of harassment and discrimination, despite her many requests for help.
In order to settle Ms. El Guindi’s claims and avoid the necessity of turning to a more formal means of resolution, Ms. El Guindi requests the following:
1. Compensation for her pain and suffering in the amount of $100,000;
2. A positive letter of recommendation;
3. Reimbursement of her lawyers’ fees and other costs incurred; and
4. Agreement to have Ms. El Guindi’s former department receive diversity, equity and inclusion training in how to work effectively with trans and other 2SLGBTQIA+ people.
Your immediate review of this matter is requested, and we look forward to your reply on or before December 2, 2022.
Very truly yours,
Law Offices of Dickinson Jeffery
