Mitigation Duty After Wrongful Dismissal: What Ontario Employees Need to Know
When an Ontario employee is dismissed, they have a duty to “mitigate” — to take reasonable steps to find comparable work. Failing to mitigate can reduce a wr...
Frequently Asked Questions
Do I have to take the first job offered to me to mitigate?
No. The duty to mitigate requires reasonable steps to find comparable work, not the first available job. You can decline offers that are materially lower in pay or status, or that involve a relocation you would not reasonably accept.
Does income from a new job reduce my wrongful-dismissal claim?
Yes. Income actually earned during the notice period is deducted dollar-for-dollar from common-law damages. Some exceptions exist — income from a side business that pre-existed the dismissal is generally not deductible.
Can I take a few months off after being dismissed?
A reasonable adjustment period is generally accepted. Extended periods of inactivity without explanation are not. Courts look at whether you made sustained efforts to find comparable work during the notice period as a whole.
What if I go back to school after being dismissed?
Going to school is generally accepted as mitigation where retraining is a reasonable path to comparable employment — particularly in contracting industries or where the previous role required obsolete skills.
Do I have to accept re-employment with the same employer who dismissed me?
Only in narrow circumstances. The Supreme Court in Evans v. Teamsters held that returning to the dismissing employer can be required where the relationship remains workable. Hostile work environments, demotions, or breakdowns in trust generally defeat the argument.
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