Employment Law 101: Mitigation

Mitigation issues can save an employer months of termination pay and/or gut your termination case, depending on whether you are the employer or employee in a dispute. But what exactly is mitigation? This post sets out the basics.

What is Mitigation?

In Canadian employment law, mitigation refers to the legal obligation of an employee who has been terminated or laid off to make reasonable efforts to find comparable employment. This principle of "mitigating damages" is used to reduce the potential compensation or termination package an employer may be required to pay. For instance, if an employee is terminated and they find a new job within a short period, the courts will set off the new income from the amount that the previous employer may be required to pay because the employee has mitigated their loss of income.