The Court of Appeal Considers the Duty to Mitigate

A dismissed employee has a legal obligation to take reasonable steps to minimize the financial loss suffered as a result of their termination of employment. The legal term for this obligation is “the duty to mitigate”. It requires the dismissed employee to take reasonable steps to find comparable employment elsewhere.

The employer bears the evidentiary burden of proving that the employee failed to take reasonable steps to mitigate their damages.

In a wrongful dismissal action the dispute between the dismissed employee and employer often revolves around the whether the employee’s job search was reasonable and whether the employee failed to apply to comparable job positions.

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