CanadaDo I have to look for another job (mitigate) after being wrongfully dismissed?
Yes, you generally must make reasonable efforts to find comparable work after being wrongfully dismissed — this is called mitigation — or risk having your damages reduced.
What the Law Says
Canadian employment law does not codify mitigation rules in federal or provincial statutes — instead, mitigation is a common law principle applied by courts to limit wrongful dismissal damages.
Mitigation is not set out in legislation like the Canada Labour Code or provincial employment standards acts. It arises from contract law principles: when an employer breaches the employment contract by dismissing without cause or proper notice, the employee has a duty to take reasonable steps to reduce their financial loss.
This means you should actively look for comparable employment — considering factors like salary, responsibilities, location, and industry — but you are not required to accept just any job, relocate unnecessarily, or take a significant pay cut.
What Courts Have Said
The Supreme Court of Canada confirmed the duty to mitigate and clarified how it operates in wrongful dismissal cases.
The Court held that a wrongfully dismissed employee must mitigate their losses, and the employer bears the burden of proving the employee failed to do so reasonably. The Court emphasized that mitigation does not require accepting unsuitable work — only making genuine, reasonable efforts to find comparable employment.
What to Do
Start your job search promptly — delay may be seen as unreasonable.
Keep records: save job applications, interview notes, rejection letters, and logs of your search efforts.
Apply for roles with similar duties, pay, and status — you don’t need to take a demotion or major cut in income.
If offered suitable work, consider it carefully; refusing without good reason could reduce your damages.
Consult an employment lawyer if unsure whether a role meets the 'comparable' standard.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.