The law is stated as at 19 December 2007
How are damages calculated in wrongful dismissal claims?
Damages in wrongful dimissal claims are calculated in the same way as breach of any other contract. The basic rule is that the employee must be placed in the same position as if the contract had been performed.
The employee will therefore be entitled to their full net salary for the contractual notice period, and loss of other benefits for the notice period including for example employer’s pension contributions, loss of use of a company car, private health insurance, contractual bonuses, commissions, etc.
While every care has been taken in compiling these notes, the CIPD cannot be held responsible for any errors or omissions; the notes are not intended to be a substitute for specific legal advice.