- The underlying idea is that notice damages exist to bridge the gap between your old job and reasonably comparable new employment — not to provide a windfall regardless of what you do next.
- There is no single required checklist, and what counts as "reasonable" depends on your industry, seniority, and local job market — but efforts that generally support a mitigation record…
- - You are not required to take any job, at any wage, immediately.
Being dismissed without cause in Ontario generally entitles you to notice, or pay in lieu of notice. What many people don't realize is that collecting the full value of that entitlement usually comes with a responsibility of your own: making reasonable efforts to find comparable new work. This is called the duty to mitigate, and ignoring it can genuinely shrink what you eventually recover.
Here's what the duty to mitigate actually requires after being fired in Ontario — and, just as importantly, what it does not require.
What "Duty to Mitigate" Means
The underlying idea is that notice damages exist to bridge the gap between your old job and reasonably comparable new employment — not to provide a windfall regardless of what you do next. So Ontario law generally expects a dismissed employee to make reasonable efforts to reduce their own losses by searching for new, comparable work, rather than simply waiting out the notice period.
What Counts as Reasonable Effort
There is no single required checklist, and what counts as "reasonable" depends on your industry, seniority, and local job market — but efforts that generally support a mitigation record include:
- [ ] Updating your resume and professional profiles promptly after the dismissal
- [ ] Applying to roles that are genuinely comparable in seniority, compensation, and field
- [ ] Keeping records of applications, responses, interviews, and networking efforts
- [ ] Using recruiters, job boards, and industry contacts, not just one narrow channel
- [ ] Responding promptly to interview requests and following up appropriately
- [ ] Considering reasonable further education or retraining if it genuinely improves your prospects in your field
What the Duty Does NOT Require
- You are not required to take any job, at any wage, immediately. The expectation is comparable employment, not the first available position regardless of fit or pay.
- You are not required to relocate, in most circumstances, unless relocation was already a realistic expectation of your prior role.
- You are not required to accept re-employment with the same employer on unreasonable or humiliating terms, particularly after a difficult termination.
- You are not required to guarantee results — the duty is about making reasonable efforts, not about actually landing a new job by a certain date.
How Failing to Mitigate Affects Your Claim
If a court finds that a dismissed employee failed to make reasonable efforts to find comparable work, it can reduce the damages awarded to reflect the income the employee likely could have earned had they mitigated properly. The employer generally bears the burden of showing that the employee failed to mitigate and that comparable work was reasonably available — it isn't simply assumed against the employee. There is no fixed formula for how much a shortfall in mitigation efforts reduces an award; it depends entirely on the facts.
Practical Steps to Protect Your Position
- Start your job search promptly after the dismissal, rather than waiting.
- Keep a written log of every application, contact, and response — dates matter.
- Save job postings you applied to, so you can later show the roles were genuinely comparable.
- Don't turn down clearly comparable opportunities without a good reason, and document your reasoning if you do.
- Tell your lawyer about any income you do earn during the notice period — it generally needs to be accounted for either way.
Frequently asked questions
Does the duty to mitigate apply if I was fired for cause?
The duty to mitigate is specifically about reducing notice-period damages, so it typically becomes relevant once it's established you're entitled to notice or pay in lieu in the first place — a genuine for-cause dismissal, if it holds up, generally means no notice entitlement exists to mitigate against.
What if I can't find any comparable work despite trying hard?
That's exactly the situation the duty to mitigate anticipates — it requires reasonable effort, not guaranteed success. A well-documented, genuine job search that simply hasn't produced results yet does not itself reduce your entitlement.
Do I have to accept a lower-paying job to satisfy the duty?
Not automatically. Whether a lower-paying or lesser role counts as "comparable" enough that turning it down looks unreasonable depends on the specifics — how much lower the pay is, how different the role is, and what the broader job market looks like in your field.
Does severance pay get reduced by my mitigation earnings too?
This is a nuanced, fact-specific question that depends on how your compensation package is structured and whether you're dealing with common-law notice damages, contractual pay in lieu, or a separate severance entitlement — it's worth confirming with a lawyer rather than assuming either way.
This is a litigation question
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