Baxter, at age 45, was hired as the general manager of the CountrySide Shipping Company by Carrothers, the company president. The initial contract of employment was for a three-year term and was embodied in an exchange of letters between Baxter and Carrothers in 2008. At the end of the three-year term, Baxter continued on as general manager, receiving annual increases in salary, executive profit sharing, pension contributions, and discretionary bonuses, if business was exceptionally good in a given year. In January 2020, for no apparent reason, Carrothers called Baxter into his office, and told him his services were no longer required. Carrothers offered Baxter a week's salary as "severance pay." At the time of termination, Baxter was earning a salary of $70,000 per year, received company paid pension contributions of $5,000 annually, and, in 2019, had received $3,000 from profits shared, and a $5,000 bonus. In determining the amount of damages to which Baxter would be entitled, the judge would total the salary and benefits that Baxter would ordinarily have received during the period of reasonable notice, and deduct any earnings made by him during that time.

Question

Quizplus · Accepted Answer

The explanation provided outlines a common legal approach in employment law cases where an employee is terminated without adequate notice. The judge would calculate damages based on the salary and benefits the employee would have received during a reasonable notice period, minus any income the employee earned during that period if they found new employment. This approach compensates the employee for the loss of income and benefits they would have expected to receive had they been given proper notice of termination.

Baxter, at Age 45, Was Hired as the General Manager