When a worker’s employment is terminated without cause or notice they usually have a “duty to mitigate” their financial losses if they want to take legal action against their former employer. This means the worker has a legal obligation to take reasonable steps to find new employment to replace their lost income.
If a worker does not take adequate steps to mitigate their financial losses, the amount they will be offered in a settlement or awarded as damages by a court or a tribunal may be reduced.
A worker should keep written records to document that they have been searching for work. This includes things like a logbook that records job applications, interviews and other job search efforts such as attending a resume workshop.
It is beneficial to seek professional assistance from a local organization such as an Employment Resource Centre or Goodwill Career Services.
A worker is generally only required to accept work that is similar to their lost employment in terms of location, occupation and salary. However, it may become reasonable to accept employment on different terms if a prolonged job search is unsuccessful.
The duty to mitigate is sometimes impacted by a dismissed worker’s personal circumstances. For instance, if a worker becomes disabled after they are dismissed it may affect what is considered a reasonable job search.
Should a worker secure new employment during the reasonable notice period, those...
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