Wrongful dismissal is rightly defined as a breach of an employee’s contract leading to termination of his/her services. Many employers tend to ignore the provisions of the statutes in the Employment Act, but the fact stands that employees who have been wrongly dismissed can still be able to recover their jobs or get compensatory damages if successful legal redress is sought.

In a wrongful dismissal suit, an employee alleges that he was sacked or fired in utter violation of underlying employment laws. Since these claims are always difficult to prove, many of them are resolved through boardroom settlements, the reason being that they may also impact negatively on the employer side. A successful determination of such claims depends on a number of factors, this article tends to unravel them.

How Wrongful Termination Settlement Amounts Are Determined

For one to be awarded a settlement on claims of wrongful termination, a varied number of components are looked at and they categorically determine the extent of loss suffered as a result of the unfair dismissal. Some of  these factors are discussed below;

Wage Loss

This is an accrued amount, in wages that the employee has lost since termination up to the final date of settlement. In mitigating the effects of wrongful dismissal, one may have landed a new opportunity elsewhere, but the law requires that all benefits acquired from the new opportunities must be deducted from the final claim amount. In the contrary, wage loss suffered as a result of unemployment is factored in the total claim amount.

Lost Benefits

The total value of benefits lost is determined and factored in the final claim amount; a wrongfully dismissed employee may look for alternative health insurance whose total cost will be eventually be factored in the final claim amount.

Emotional & Psychological Distress

Stress, anguish and psychological sufferings experienced as a result of wrongful dismissal play a pivotal role in determining the final claim amount. A good number of employees undergo anxiety and depressing moments as a result of job loss. In most extreme cases and examples, they may seek medical treatment for these conditions whose cost will be factored into the final claim amount.

In addition to monetary claims, grunted employees may also file to seek justice for personal violations, vindications and to compel their respective former employers to change company’s policies to prevent re-occurrence of the same.

Why Are They Common?

It is a known fact that majority of these claims never see the floors of courtrooms. Alternatively, they are always sorted without going for a trial, the reason being that settlement offers the best platform for both parties unlike the unpredictable nature of civil trials.

While on trial, it becomes near impossible for the terminated employee to urge his case and convince the jury that he wasn’t terminated for impermissible reasons. Likewise, it becomes impossible for the employer to convince the court that due procedures were followed when dismissing the employee. A good number of similar trials in the past have potentially revealed damaging information about would be reputable companies leading to massive losses.


It is advisable for the wrongfully terminated employee to seek a third-party’s opinion on the viability of his claim; this should be a person who well understands the company’s employment laws. Such kind of insights will help the plaintiff in avoiding erroneous, costly and complicated negotiation and litigation processes. Click here to learn more about hernia mesh settlement.