Remedies for Wrongful Termination of Employment Contract

February 22, 2023
Wrongful Termination of Employment Contract
Documents about wrongful termination and gavel.

By Benita Ayo

I have stated before now that the employment relationship between an employer and an employee is mostly regulated by a contract of employment which is a contractual document setting out the terms and conditions of the employment relationship.

Like any other contractual relationship, an employment contract may be brought to an end by circumstances which may or may not be within the control of the parties.

Wrongful Termination of Employment

The termination of an employment contract becomes wrongful when it fails to follow the procedure outlined in the employment contract. For example, it is typical for an employment contract to state that either party may bring the employment relationship to an end, provided that a written notice of the termination of the contract is given.

The length of notice for terminating a contract of employment also depends on the provisions of the contract of employment. It is common to find 1 (one) month notice requirement, and if this is not complied with, then the party who failed to provide the required notice will be liable for wrongfully terminating the employment contract.

Remedies for Wrongful Termination of Employment Contract

Where there is a remedy, there is a way.  (Ubi jus Ibi Remedium)! The remedies available for an aggrieved party for the wrongful termination of employment are;

For an Employer

  • Payment in Lieu of Notice: This is a sum payable by the employee to an employer in the stead of a written Notice of Resignation, usually 1 (one) month length.
  • Damages for wrongful termination of the Employment Contract: In this instance, an employer will become entitled to be paid damages by the employee for the failure of the employee to provide the required Notice of Resignation of Employment.

For an Employee

  • Payment in lieu of Notice: The employee is entitled to payment in lieu of Notice of Termination. This is usually the situation where the termination letter from an employer to an employee is immediate and takes effect instantly.
  • Damages for wrongful termination: An employee may claim against his erstwhile employer damages for wrongful termination of his employment. It is usually measured based on the monthly salary plus the sum which an employee would have earned had his employment not be so wrongfully terminated.

For further consultations, you may reach me at;

WhatsApp: +2348063775768

Email: [email protected]

Benita Ayo is a seasoned Corporate Commercial Counsel with over 9 years post-call experience. She has handled myriads of briefs in Corporate/Commercial, Employment Law as well as Property Transactional Practice

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