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Your Duty to Mitigate After Being Fired in Ontario: What Job Search Efforts Are Expected

Ontario employees who are dismissed generally must make reasonable efforts to find new work. Learn what that duty to mitigate actually requires.

Litigation5 min readTSLBy the Treadstone Law team · OntarioUpdated 2026-07
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Key takeaways
  • 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:

What the Duty Does NOT Require

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

  1. Start your job search promptly after the dismissal, rather than waiting.
  2. Keep a written log of every application, contact, and response — dates matter.
  3. Save job postings you applied to, so you can later show the roles were genuinely comparable.
  4. Don't turn down clearly comparable opportunities without a good reason, and document your reasoning if you do.
  5. 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 article is general information, not legal advice. Reading it does not create a lawyer-client relationship. Ontario laws, tax rates, and government programs change, and how the law applies depends on your specific facts. For advice about your situation, speak with a licensed Ontario lawyer. Treadstone Law is licensed by the Law Society of Ontario — reach us at 1-844-900-1070 or start a file online.

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