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ARTICLE · 31 AUGUST 2012

Is There A Duty To Mitigate? Not When The Fix Is In...The Agreement

Stikeman Elliott LLP
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The Ontario Court of Appeal recently held that the duty to mitigate following dismissal does not apply when a dismissed employee’s contract contains an express notice of termination provision and is silent with respect to mitigation.

CanadaEmployment and HR
Stikeman Elliott LLP
Stikeman Elliott LLP
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The Ontario Court of Appeal recently held that the duty to mitigate following dismissal does not apply when a dismissed employee's contract contains an express notice of termination provision and is silent with respect to mitigation.

Facts and Judicial History

Peter Bowes (Bowes) began his employment with Goss Industries Inc. (Goss) in October 2007 as a Vice-President of Sales and Marketing.  As part of his employment contract, Bowes was entitled to six (6) months' notice of termination (or pay in lieu thereof) if he was terminated without cause before completing four (4) years' service with Goss.  Bowes was terminated without cause by Goss in April 2011.  Thus, Bowes was entitled to six (6) months' salary continuation pursuant to his contract.

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