What type of compensation is awarded for wrongful dismissal, based on what the employee would have earned?

In cases of wrongful dismissal, the compensation awarded typically reflects the income and benefits the employee would have earned had the employment continued without termination. This compensation is often referred to as damages for wrongful dismissal, as it aims to place the employee in a position as close as possible to what they would have received if the wrongful termination had not occurred.

This form of compensation can include wages, bonuses, and benefits that would have been provided during the notice period or until another employment opportunity is secured. The focus is on the earnings lost due to the termination, making it a direct reflection of the employee’s expected earnings as if they had remained employed.

Other options, such as basic awards, compensatory awards, and severance pay, have different contexts and may not specifically address the wrongful nature of the dismissal or the precise calculation based on what the employee would have earned had they remained employed. Basic awards can be part of various compensation structures but do not specifically target wrongful dismissal. Compensatory awards might cover broader damages that account for emotional distress or other non-economic losses, while severance pay is typically defined by contractual or statutory provisions for terminating employees under other circumstances, rather than for wrongful dismissal specifically.