Can you help me solve this case problem from bussines law 12. Wassenar worked fo
ID: 329807 • Letter: C
Question
Can you help me solve this case problem from bussines law 12. Wassenar worked for Panos under a three-year contract stating that if the contract were terminated wrongfully by Panos before the end of the three years, he would pay as damages the salary for the remaining time that the contract had to run. After three months, Panos terminated the contract, and Wassenaar sued him for pay for the balance of the contract term. Panos claimed that this amount could not be recovered because the contract provision for the payment was a void penalty. Was this provision valid? [Wassenaar v. Panos, 331 N.W.2d 357 (Wis.)]Explanation / Answer
The wessenaar v. panos, 331 N.W.2d 357 (Wis.) trial in court of law concluded that
There is no such stupilated damage caused by the employees to the Towne Hotel and hence such penalty is not executable.
Generally contract breach penalties are different form contract to contract but a a general outlook:
A compensation of not more than three months of of employee salary can be accessed as an compensation of the contract.
Yes the provision is void on the grounds of the accumulated benefit to the employee is less than the cost of breach of the contract which accorin to labour laws are not permissible and are also against International Labor Rights of the employee.