mitigate his loss by seeking employment, as soon as possible, for as high a wage as possible;so the tribunal or court would deduct earnings from a new job, during the correct notice period from compensation due, but if the employer attempts to do this unilaterally, it may simply trigger a claim that would not otherwise have happened, had it turned a blind eye to the employee making a couple of weeks' wages out of the situation. Due to the disproportionate cost of employment litigations, it is usually sensible for an employer to err on the side of generosity, trying to ensure the parting of ways is amicable rather than showing off how many loopholes can be found. Pensions cannot be deducted. It is possible for a contract to be worded so as to make the pay in lieu of notice a debt, to which the employee is entitled even if he gets a new job the next day. Risks Breaches of contract Wrongful dismissal is the lesser type of unlawful dismissal, costing only what it would have done to keep the employee during the notice period, but it can be slightly dangerous for the employer, due to the potential loss of restrictive covenants and due to the employee being able to start alleging all sorts of breaches of contract, to try to use up the £25,000 breach of contract allowance in a tribunal, and if he takes the employer to court instead there is no limit and it could end with significantly high costs. Examples Breaches of contract by the employer serious enough to create a wrongful dismissal are also a constructive dismissal; wrongful dismissals not caused by insufficient notice would have been caused by another breach, such as of the duty not to destroy the mutual bond of trust, and have included failure to inform of pension rights. The employer has no duty to act what would normally be called in good faith, but must not act in bad faith or insufficiently in good faith such that it breaks the mutual bond of trust. The obligation is usually not to do anything bad as opposed to doing something good. Losses The employee could allege extra breaches of contract and losses including: loss of earnings and psychiatrist fees for psychiatric injury caused by wrongful dismissal, loss of earnings for the time it would have taken to follow the correct disciplinary