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ARTICLE · 08 APRIL 2016

Don't Wait, Mitigate! Changing Horses And Home Schooling After Termination

Norton Rose Fulbright Canada LLP
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After termination, employees have an obligation to act in their best interests. In many situations, this includes the requirement to seek alternative employment and mitigate their loss.

CanadaEmployment and HR
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After termination, employees have an obligation to act in their best interests. In many situations, this includes the requirement to seek alternative employment and mitigate their loss. The principle is of benefit to employers, since the Courts will deduct income earned in mitigation from damages in lieu of notice. Severance agreements will often reflect this principle in some respect. Mitigation can have a significant impact on an employer's liability arising from termination. The issue raises many questions.

What is expected of employees in their mitigation efforts?  If an employee does not look for work, should they still get damages in lieu of notice? What can an employer do about it? Can damages be reduced if the employee did not act reasonably? These are questions the Court of Appeal addressed in Steinebach v. Clean Energy Compression Corp., 2016 BCCA 112.

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