What is the quantum of damages for breach of contract when an employee is terminated for cause rather than for pay?

British Columbia, Canada


The following excerpt is from Deildal v. Tod Mountain Development Ltd., 1997 CanLII 4076 (BC CA):

It cannot be doubted that the contract included the implied term that it could only be terminated for cause, or with adequate notice, or with pay in lieu of such notice. The defendant terminated for a fictitious cause, and consequently gave no notice or pay in lieu. The breach for which ordinary damages were assessed was the failure to give pay in lieu of notice (Taggart v. Kwikasair, supra, at 353). In most wrongful dismissal cases, that would be the end of the matter.

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