In cases of breach of an employment contract by the employer, how are damages determined?

The determination of damages in cases of breach of an employment contract by the employer typically involves assessing what the employee could have earned in a comparable position. This means evaluating the potential income the employee would have received had the contract been honored, while also taking into account factors such as the employee's experience, qualifications, and the current job market conditions.

This approach reflects the principle of mitigation, where an employee is expected to make reasonable efforts to find a similar job and thus reduce the financial impact of the breach. By focusing on what the employee could realistically earn in a comparable job, the measure of damages seeks to make the employee whole without providing a windfall.

In contrast, simply relying on lost wages alone ignores the broader context of the job market and the employee's circumstances, while focusing exclusively on the full contract price would not account for the employee's duty to mitigate and could result in an unfair advantage. Considering only the duration of employment would fail to address the specific financial losses incurred due to the breach and could lead to an inadequate remedy for the employee.