In Maticevic v Bank of Montreal, the Adjudicator had to determine the damages owing to an employee who had been out of work for 29 months following an unjust dismissal. The Adjudicator found that the employee was too sick to work for about 22 months, but that he had no good excuse for the other 7 months, so he reduced the compensation by 25%.
failure to mitigate
Where an employee is found to have failed to mitigate their damages, their entitlement to damages may be significantly reduced. So what happens if an employee is too sick to look for new work? Does that count as a failure to mitigate?
Some employees receive a large percentage of their total remuneration in variable compensation. A much litigated issue is whether the employer is required to pay variable compensation to a terminated employee during the applicable notice period and if so how is this compensation calculated.