What is the test for damages in the wrongful dismissal context?

Alberta, Canada


The following excerpt is from Harris v. Robert Simpson Co., 1984 CanLII 1236 (AB QB):

Christie in Employment Law in Canada (1980), discusses the applicability of the Hadley v. Baxendale principles in the wrongful dismissal context, at p. 393: … the basic measure of damages is the wages that an employee would have earned from the time he received notice of his dismissal until termination upon the elapse of the period of due notice, minus any money that he has in fact earned over that period or could have earned had he made a reasonable effort to find alternative employment and minus any collateral benefits he has gained as a result of being dismissed. Any such loss of wages is clearly loss that the employee would suffer in the usual course of things, within the first rule in Hadley v. Baxendale. Equally clear under the rules in Hadley v. Baxendale, perhaps the second rule, the damages of a wrongfully dismissed employee will include compensation for loss of the whole range of fringe benefits and other extras to which the employee is entitled under his contract of employment.

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