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Monday, October 20, 2025

Should declining job offer during notice period reduce severance pay? - HRD America

Court examines whether worker had legitimate reasons to reject comparable position

The Alberta Court of Justice recently dealt with a wrongful dismissal claim involving a long-serving part-time employee who worked only one day per week for over 14 years.

The worker was in her early 40s at the time of termination and held a receptionist position.

She had two undergraduate degrees, but for many years, her employment consisted of receptionist and front office duties.

The worker sought damages for payment in lieu of notice, loss of benefits, and punitive damages.

She argued she was entitled to a substantial notice period given her length of service.

The employer argued the worker's severance claim was excessive, there was no basis for punitive damages, and the worker failed to mitigate her damages by not taking reasonable steps to find alternative employment.

The case raised questions about what constitutes reasonable notice for a part-time employee with significant tenure, and whether an employee who makes limited job search efforts has failed to mitigate damages.

Reasonable notice period disputed

The worker submitted that she was entitled to a substantial notice period based on her years of service. The employer submitted that a shorter notice period was appropriate.

The court noted that the reasonableness of the notice must be decided with reference to each particular case, having regard to the character of the employment, the length of service, the age of the worker, and...



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