Calculating Damages for Wrongful Dismissal

An individual's damages for wrongful dismissal are equal to the difference between the salary and benefits the person would have received over the period of reasonable notice to which they are entitled, less the employment income from all sources that they did in fact receive over that same period.

For example, if Mr. 'X' is:

• terminated on January 1, 1996 without notice or severance;
• he has salary and benefits equal to $50,000.00 per year;
• he is entitled to 12 months reasonable notice; and
• he earns $20,000.00 from alternative employment in 1996.

then his damages for wrongful dismissal are equal to $30,000.00.

Damages for wrongful dismissal are based on the short-fall, if any, in the individual's earnings from employment over the reasonable notice period.

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