Duty to Mitigate

Termination Provision In Contract – No Implied Duty To Mitigate

At common law, upon termination of employment, an employee is entitled to damages for wrongful dismissal. The employee is entitled to damages in lieu of reasonable notice subject to a duty to mitigate. These damages are inclusive of his/her statutory entitlements under the Ontario Employment Standards Act, 2000 or the Canada Labour Code, depending upon whether the company is provincially or federally regulated. The employee’s duty to mitigate requires that he/she take active steps to find comparable employment during the reasonable notice period. Any monies earned during the notice period are then deducted from the award. The statutory entitlements are not subject to mitigation.

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