Big payout after employment contract repudiated

6 October 2017

An employee of accountancy firm Crowe Horwath has been awarded almost $425,000 in damages by the Victorian Supreme Court, for the repudiation of his employment contract.

The senior accountant was entitled to 12 month’s pay, superannuation, plus the bonus he would have received if it not been for the repudiation in July last year, as per Robinson v Harman

the rule of the common law is, that where a party sustains a loss by reason of a breach of contract, he is, so far as money can do it, be placed in the same situation, with respect to damages, as if the contract had been performed.”

Crowe Horwath argued that the accountant’s employment would have ended when the company implemented a restructure in August 2017 anyway, which would have triggered a six-month termination payment. However, Justice Michael McDonald rejected this contention.

The parties are to file written submissions by 4pm on 29 September 2017, so that Justice McDonald can rule on the question of interest and costs.