Mitigation Income May Not Affect The Outcome

When an employee claims damages for wrongful dismissal, they are typically required to do their very best in mitigating any damages relating to loss of income following the dismissal (i.e. by looking for and obtaining alternate, comparable employment).  In most cases, income earned during the common law notice period is then deducted from that which the employer would otherwise have to pay to the employee over that notice period.

But are all types of income deducted from damages owed?

In a decision released on May 23, 2017 (Brake v. PJ-M2R Restaurant Inc.), the Ontario Court of Appeal shed further light on this question, revising the traditional deductions in calculating the quantum of damages in a wrongful dismissal action.