The issue of good faith and bad faith in contractual relations is distinct from the issue of calculating damages due to the failure of the employer to provide reasonable notice of termination. There was no need in this case to determine whether or not the employer acted in bad faith as the same outcome can be determined without the need to determine the bad faith issue.
A recent BC Court of Appeal decision is a good reminder and summary of the principles underlying an employee’s duty to mitigate following a wrongful dismissal, and confirms that post-termination income in excess of supplementary income that an employee has earned while employed is properly deducted from a wrongful dismissal damages award.
Wal-Mart was found to have breached its duty as it was trying to find a new position for Ms. Galea. I don’t know if this case will turn out to be an outlier, but in the meantime employers should be very careful when dealing with an employee who is between jobs within the organization.