Can an employee mitigate their damages by continuing to work with the same employer in the reduced position?

Ontario, Canada


The following excerpt is from Chapman v. Bank of Nova Scotia, 2007 CanLII 18732 (ON SC):

In the case of Mifsud v. MacMillan Bathurst Inc.[15], it was held that an employee can be required to mitigate his damages by continuing to work with the same employer in the reduced position offered to him. This would not apply if the working conditions precluded the continued employment. As stated by McKinlay, J. A. at p. 710, Where the salary offered is the same, where the working conditions are not substantially different or the work demeaning, and where the personal relationships involved are not acrimonious (as in this case) it is reasonable to expect the employee to accept the position offered in mitigation of damages during a reasonable notice period, or until he finds acceptable employment elsewhere.

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