Graham, aged 45 years, served as plant manager at a manufacturing firm for five years. His annual salary was $55,000. As a result of a corporate reorganization, Graham was given one month's notice of termination which was considered by management to be the length of time necessary for an employee to find a similar paying job. In an action for wrongful dismissal an employee's damages are calculated as the net loss actually incurred from the date of termination to the end of the reasonable notice period as it is determined.

Question

Quizplus · Accepted Answer

In cases of wrongful dismissal, damages are indeed calculated based on the net loss the employee suffers from the date of termination until what would have been considered a reasonable notice period. This accounts for the income the employee would have earned had they been given proper notice or retained for the duration of the reasonable notice period.

Graham, Aged 45 Years, Served as Plant Manager at a Manufacturing