In Ontario employment law, mitigation refers to the obligation of a dismissed employee to take reasonable steps to find comparable employment after termination. Any income earned from new employment found soon after termination may reduce the potential compensation or termination package an employer may be required to pay.
Mitigation is one of the most frequently argued and most commonly misunderstood issues in wrongful dismissal litigation. Employers often assume that any misstep by a terminated employee in their efforts to find new employment will reduce what they will have to pay. Employees, meanwhile, are sometimes advised (incorrectly) that taking a “lesser” job will not count against them.
