According to Honda v. Keays, mental distress or moral damages are awarded under general contractual principles, on the basis that at the time the parties entered into the employment contract they will be deemed to have contemplated that a breach of the duty of good faith and fair dealing would give rise to damages where the unfair or bad faith manner of dismissal causes distress to the terminated employee. Such damages are compensatory and aim to compensate the employee for the distress suffered, with the quantum being set by the court with reference to previously-decided case law and the nature and severity of the distress suffered by the employee.
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.