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Mitigating damages in a time of uncertainty

The mitigation of damages has become a hot employment law issue. In this recent British Columbia case, the employee was entitled to damages for wrongful dismissal after the employer terminated her during the economic downturn. Although the employer argued that the employee failed to mitigate her damages when she did not accept the employer’s subsequent offer of re-employment, the Court found that the uncertainty of work and payment was such that the employee did not act unreasonably when she declined the job offer. Thus, the employee was entitled to 12 months’ termination notice.

 

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