George, an employee, breaches a fixed-term employment contract by quitting before the end of the term. What can his employer recover as damages? A. Nothing, because courts do not order anyone to perform a job against his or her will. B. All amounts already paid to George under the contract. C. Only amounts paid to George for which he has not yet done the work. D. The costs of hiring a replacement employee plus any increase in salary paid to the replacement employee.

 Answer

D. The costs of hiring a replacement employee plus any increase in salary paid to the replacement employee.

Explanation

Fixed-term employment implies that the contract must end on a particular date or after a certain event or task completion. Both the employer and the employee are protected against breach by either party. When an employee breaches the contract by leaving before the end of the contract, the employer is entitled to damages that put him/her in the same financial position they would have been without the breach. This means, the employee will be charged the cost of hiring another replacement employee until the end of the contract.