Employer clients often ask during a wrongful or constructive
dismissal lawsuit what damages may be awarded. One relevant
consideration is the common law duty to mitigate. A wrongfully
dismissed employee has a duty to mitigate his or her damages by
attempting to find alternate employment. The question of whether an
employee has met his or her duty to mitigate becomes especially
relevant in times of economic downturn when employment prospects
are sparse. In light of the current Alberta economy now is a good
time to remind employers what obligations an employee has following
a dismissal without notice.
The most recent Canadian authority on the duty to mitigate
remains the Supreme Court of Canada's decision in Evans v.
Teamsters, Local 31, 2008 SCC 20 ("Evans").
The Supreme Court reaffirmed in Evans an employee's
duty to mitigate his or her losses resulting from a wrongful
dismissal. There are four important takeaways for employers
following Evans:
