When Mitigation Meets Inference: What Employers Can Take From Gugulyn v. Alberta

The recent Alberta Court of Appeal decision in Gugulyn v. Alberta, 2026 ABCA 68 provides a useful reminder for employers navigating mitigation arguments in wrongful or constructive dismissal cases. While the outcome of this case ultimately favoured the employee in several respects, the Court’s reasoning offers practical guidance on how employers can meet their evidentiary burden without complicating their case. 

Background 

A long-serving employee of the Government of Alberta was constructively dismissed after being reassigned to a role he believed he was unqualified to perform. He declined the new position and did not return to work. At trial, the Court found he had been constructively dismissed and, was entitled to 23 months’ pay in lieu of notice under the common law.