What does a party need to consider when seeking damages for breach of an employment contract?

When seeking damages for breach of an employment contract, the party must consider not only the total amount of the contract but also any potential mitigations. This concept revolves around the principle of mitigation of damages, which requires the non-breaching party to take reasonable steps to minimize their losses resulting from the breach.

For example, if the employee was terminated and is claiming loss of salary as damages, they have a duty to seek other employment to offset those losses. If they find another job that pays a similar salary shortly after their termination, the damages for which they could seek compensation may be reduced.

The consideration of the total amount of the contract provides a baseline for understanding the potential financial impact of the breach, while mitigation seeks to reflect the reality that the injured party should actively work to reduce their losses rather than simply claim the total value of potential earnings as damages. Thus, a comprehensive assessment that integrates both the total amount as well as any reasonable steps taken to mitigate damages is essential.