Employment contracts set forth obligations and terms for both workers and employers, and if either party breaks the contract, the other may be able to collect damages. In employment law, damages are sums of money that compensate a party for losses incurred as a result of a broken contract.
Calculation of Damages in an Employment Contract Breach
Damages awarded for the breach of an employment contract are usually called “expectation damages”. These are given to compensate a party for the loss of a bargain, or the profit that would have been made if the other party had fulfilled the terms of the contract. The computation of expectation damages depends on the party bringing the legal action, and with the help of Employment Law Attorneys Colorado Springs.
1. If an employer sues a worker: Here, an employee may quit a job, but the employer feels that the worker owes them certain duties. If the employer prevails, he or she will be compensated for the value of the duties owed, and the cost of finding another employee.
2. If a worker sues an employer: This situation occurs when a worker feels as if he or she has been wrongfully terminated. If the employee prevails, they will be compensated for lost wages.
Other Kinds of Damages
Even if a party cannot recover expectation damages, he or she can still make other recoveries, such as:
1. Liquidated damages
2. Consequential damages
3. Specific performance
4. Nominal damages
Limitations on Recovery
Recovery in a breach of employment contract case is subject to several limitations. If a worker is hired at will, he or she can be fired for almost any reason, without the employer being liable for damages. The party performing the breach must be able to reasonably foresee the damages, which must be proven.
For instance, a claim of emotional distress cannot be measured, and as a result, no damages will be awarded. The party suffering the loss has an obligation not to worsen the situation.
Hiring a Lawyer for a Breach of Contract Case
If you have been wrongfully terminated, or otherwise believe you are entitled to monetary damages, an employment attorney can help you make the appropriate recovery. If you are facing a lawsuit for breach of contract, Employment Law Attorneys Colorado Springs can help you formulate a solid defense.
