LABOUR LAW — Master and Servant — Contract Terminable on Notice — Measure of Damages for Wrongful Dismissal
Principle Statement
In a claim for wrongful dismissal, the measure of damages is prima facie the amount that the plaintiff would have earned had the employment continued according to contract. Where the defendant has a right to terminate the contract on giving prescribed notice before the end of the term, the damages awarded are what the plaintiff would have earned over the period of that notice, apart from other entitlements.
Ratio Decidendi (Source)
Per Oguntade, JSC, quoting Nigeria Produce Marketing Board v. Adewunmi (1972) 1 All NLR 433, in Osisanya v. Afribank Nigeria Plc (2007) NLC-123-135-2001(SC) at p. 8; Paras D–E.
"In a claim for wrongful dismissal, the measure of damages is prima facie the amount that the plaintiff would have earned had the employment continued according to contract. Where the defendant, on giving the prescribed notice, has a right to terminate the contract before the end of the term, the damages awarded, apart from other entitlements, are what the plaintiff would have earned over the period of notice."
Explanation / Scope
The measure of damages for wrongful dismissal is contractual—it seeks to place the plaintiff in the position he would have been in had the contract been properly performed. Where a fixed-term contract exists, damages cover the unexpired term. Where termination requires notice, damages cover only the notice period, as the employer could lawfully terminate after giving that notice. The employee has a duty to mitigate loss.
