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Mitigation: Index to Contents ›

Mitigation

Reasonable Job Search, Comparable Employment, Offsets & Return-to-Work Issues

This chapter examines the employee’s obligation to mitigate damages following dismissal,
including the employer’s evidentiary burden, comparable employment, relocation,
fixed-term contracts, mitigation expenses, self-employment, benefit offsets,
stock options and the Mifsud and Evans return-to-work principles.

Quick ResearchFundamentals
Income & Comparable Work
Human Rights
Relocation
Fixed-Term Contracts
Mitigation Expenses
Self-Employment
Offsets
Stock Options
Mifsud
Evans
Statutory Issues
01

The Fundamentals

The basic principles governing mitigation, including the employer’s twofold onus,
comparable employment, reasonableness of the employee’s efforts and the evidence
required to establish a failure to mitigate.

  • Mitigation: More Complex than Expected
  • General Principles
  • The Fundamentals
  • Benefit Plans
  • Trial Within Mitigation Period
  • Assiduous Test
  • Failure to Mitigate: Consequences
  • Mixed Fact & Law
02

Income & Comparable Employment

The treatment of higher-paying work, part-time income, inferior positions and
other forms of post-dismissal employment.

  • Inferior Position
03

Mitigation in Human Rights Cases

The application of mitigation principles to human rights claims involving
lost income and related remedies.

  • Human Rights Cases
04

Relocation

Whether an employee must consider employment requiring relocation depends upon
the comparability of the position, the disruption involved and whose interests
the mitigation obligation is intended to serve.

  • Anecdotal Review Prior to Forshaw
  • To Whom is the Duty Owed: A Principled Approach
05

Fixed-Term Contracts & Fixed Severance

Whether mitigation applies where the parties have agreed to a fixed term,
fixed severance payment or consulting arrangement.

  • Fixed Term: Early Days
  • Fixed Term: Modern
06

Mitigation Expenses

Recovery of reasonable expenses incurred in attempting to mitigate,
including moving costs, job-search expenses and jurisdictional differences.

  • Mitigation Expenses
  • Mitigation Expenses: British Columbia
07

Self-Employment & Starting a New Business

An employee may choose self-employment as a reasonable mitigation strategy,
but the analysis remains highly fact-specific and may include business expenses,
business losses and the capital value of the new venture.

  • Own Business
  • Business Expenses & Business Loss
  • Deduction of Capital Value of New Business
08

Offsets: Statutory, Pension & Disability Benefits

Whether collateral payments received after dismissal reduce the wrongful dismissal
award depends upon the source and legal character of the payment.

  • Impact of Pension Payments
  • Disability Payments
09

Stock Options

Mitigation issues arising in claims for lost stock options, including whether
the employee must purchase replacement securities in the market.

  • Stock Options
10

Constructive Dismissal & Mifsud

The circumstances in which a constructively dismissed employee may nevertheless
be required to remain in a demoted or altered position in order to mitigate damages.

  • Constructive Dismissal: Demotion: Mitigation: Mifsud
  • Ontario Court of Appeal
  • Anecdotal Review of Mifsud Interpretation
  • Demotion: Acceptance & Waiver
11

Employer Offer to Return to Work: Evans

The Supreme Court of Canada’s Evans principle addresses when a dismissed employee
may be required to accept an offer to return to the former employer during the notice period.

  • Employer Offer: Return to Work: Evans
  • Evans: Facts
  • Supreme Court of Canada
  • Anecdotal Review of Mifsud & Evans
  • Impact of Evans
  • Timing is Important: Termination Followed by Offer of Return to Work
12

Statutory Payments & the Mitigation Defence

Statutory termination and severance entitlements may raise different questions
from common-law damages when an employer relies upon Mifsud or Evans.

  • Statutory Payment Owing

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Independent Canadian employment law analysis by David Q. Harris.

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