When mitigation isn’t mitigation

Ontario Court of Appeal stirs controversy by not excluding employee’s income during notice period from constructive dismissal damages

In a recent decision, the Court of Appeal for Ontario erred when it excluded from “mitigation income” all earnings by a dismissed employee during what the court referred to as the “statutory entitlement period” — a notional period created by the court, equivalent to the number of weeks used to calculate the employee’s entitlement to pay in lieu of notice and severance pay under the Employment Standards Act (ESA).

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