Damages are designed to compensate a party, (employee or employer).
To put the party in the same position they would be in if the contract had been properly carried out.
This normally includes the correct amount of money for the correct notice period.
It can also include any wages / salary that have not been paid.
Employers
An employer can seek damages where an employee has not given the proper amount of notice.
Under the law they will only receive damages for 1 weeks' notice.
However, if the employee's contract allows for a longer notice period the employer can claim this.
Employees
On top of the amount for the correct notice and any unpaid wages.
An employee can also receive damages for the loss of the following:
1. Perks - for example company car and private healthcare.
2. Holiday pay.
3. Commission, bonus payments and shares under their contract.
4. Loss to pension.
The court will assess the money value on these losses for the correct notice period.
The employee can also claim interest on the whole amount from when they were dismissed until the actual court or tribunal hearing.
