What is the duty to mitigate?
After a wrongful dismissal, an employee must take reasonable steps to find comparable alternative employment. Income earned from new work during the notice period is generally deducted from the damages the former employer owes. The employer bears the burden of proving the employee failed to make reasonable mitigation efforts.
Is statutory severance reduced by mitigation earnings?
No. Employment Standards Act termination pay and severance pay are minimum entitlements that are NOT reduced by what you earn elsewhere. Only common-law reasonable notice damages (claimed in a wrongful dismissal lawsuit) are subject to the mitigation offset.
Do I have to accept any job to mitigate?
No. You only have to accept comparable employment — similar in status, pay, and responsibilities. You are not required to take a significantly inferior or demeaning position, relocate unreasonably, or accept work far below your qualifications. Reasonable, good-faith efforts are the standard.
What if my new job pays more than my old one?
If your new comparable job pays more, the surplus does not create a credit against the earlier months, but earnings within the notice period still offset the damages for the overlapping period. Once your losses are fully offset, no further damages are owed for that period.