Can an employee under a fixed term contract mitigate their wages and benefits if terminated without cause?

Ontario, Canada


The following excerpt is from Mohamed v. Information Systems Architects Inc., 2018 ONCA 428 (CanLII):

This court recently held in Howard v. Benson that an employee under a fixed term contract whose employment is terminated without cause has no duty to mitigate. The court stated at para. 39 that where a contract provides either expressly or by implication for a penalty for early termination of the contract, that is the amount that is payable with no duty to mitigate, and in a fixed term contract of employment, absent a provision that provides otherwise, the penalty for early termination is “by default the wages and benefits for the unexpired term of the contract”.

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