Employee Loses By Refusing Replacement Job Offer

In the recent decision of Ghanny v. 498326 Ontario Limited, the Ontario Superior Court of Justice held that a former employee's wrongful dismissal action could not succeed because he failed to mitigate his losses when he rejected another position offered to him by his employer.

Background

Aleem Ghanny (Mr. Ghanny) had been an employee of a Toyota dealership for 18 years when he was informed that his position as Service Manager was to be terminated as a result of management reorganization. Upon informing Mr. Ghanny of this decision, the dealership owner offered him another management position with the same salary at a nearby Suzuki dealership, a recently acquired and related business. Mr. Ghanny, however, refused the offer for two (2) reasons: i) he thought his seniority at the Toyota dealership would be lost if he relocated, and ii) he was concerned that the future of the Suzuki dealership was uncertain.  The owner, however, made it clear to Mr. Ghanny that his