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Contracts • Remedies for Unexcused Non-Performance
K#168
Legal Definition
If the employer breaches, then: (Full Contract Price), subject to a *duty to mitigate*
If the employee breaches, then: (Cost to Replace Employee)
If the employee breaches, then: (Cost to Replace Employee)
Plain English Explanation
An employment contract is a contract where an employer offers to employ an employee for a specific amount of time at a specific salary or rate. In other words, the employee isn't allowed to quit until the contract is finished, and the employer isn't allowed to fire the employee until the contract is finished.
If an employer fires an employee before the end of their contract, the employee has a right to sue for the full wages owed under the contract. However, the employee must also do their best to find a new job with a similar salary, rank, etc. In other words, if you have a 12 month contract and you are fired after the first month, you can't sit around and play video games for 11 months while still suing for 11 months worth of wages. You're expected to mitigate your losses by looking for other work.
Similarly, if an employee under contract quits before the contract is finished, the employer can sue to recover the cost of replacing the employee.
If an employer fires an employee before the end of their contract, the employee has a right to sue for the full wages owed under the contract. However, the employee must also do their best to find a new job with a similar salary, rank, etc. In other words, if you have a 12 month contract and you are fired after the first month, you can't sit around and play video games for 11 months while still suing for 11 months worth of wages. You're expected to mitigate your losses by looking for other work.
Similarly, if an employee under contract quits before the contract is finished, the employer can sue to recover the cost of replacing the employee.
Visual Aids
Related Concepts
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