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Compensatory damages are meant to make an employee whole for any losses that he or she suffered based on being wrongfully terminated. If you sue a former employer for wrongful termination, you are asking the jury to award you money, called damages.Lawyers are often asked: "What's the average settlement for wrongful termination? Lost wages and benefits. If you win a wrongful termination lawsuit, the compensation (also called "damages") available to you depends on your legal claims. Compensatory damages an employee can recover include lost wages and benefits, emotional distress or mental suffering. But each case differs. Successful wrongful termination cases almost always result in cash settlements, or less often, in court awards after a trial. Workers who have been wrongfully terminated can recover their legal damages. Successful wrongful termination cases almost always result in cash settlements, or less often, in court awards after a trial.