Canadian employment law demands job loss victims work to minimize their financial losses after termination. You must continuously search for employment while accepting suitable positions to protect your financial well-being.
What Is Considered “Reasonable Steps”?
During employment disputes, courts evaluate the reasonableness of your efforts to minimize damage costs. The requirement exists to make reasonable efforts. Your severance package might decrease when you turn down appropriate job opportunities or neglect a proper job search. A labour lawyer in Canada can explain your responsibilities and protect you from an unfair failure to mitigate a claim by your former employer.
Active Job Search
The courts demand evidence of an active job search that matches your skills and professional experience. Your job search should focus on roles that match what you used to do because generic applications will not help you. Employers and courts may scrutinize your efforts, including:
- The number of job applications you submit
- Whether you apply for roles within your industry
- If you follow up on job leads
- Your willingness to attend interviews
Detailed documentation of your job applications, interview invitations, and response history helps establish your sincere efforts toward your employment search.
Accepting Suitable and Comparable Job Offers
You must seek employment opportunities and accept acceptable job offers to demonstrate proper job search diligence. But what counts as “reasonable”?
● Salary
The pay of your new position must match or exceed what you earned in your previous position. Courts accept minor pay deductions but will not approve a role offering insufficient value for your last experience.
● Benefits
Compensation isn’t just about salary. Similar job benefits, including health insurance, retirement plans, and vacation benefits, can determine whether the position meets acceptable standards.
● Responsibilities
The nature of the job matters. The evaluation process will rule out positions that ask you to execute different work activities beyond what you handled in your previous position. Senior managers must normally reject administrative positions at lower levels because these positions do not match their experience.
● Status
Your position within the professional world influences this decision. Judicial authorities will not expect you to take a position at a lower level than an executive unless there are no comparable opportunities available.
Training or Education
Some situations allow employees to pursue training or additional education to minimize financial losses. When your industry changes or job vacancies remain scarce, you should seek relevant certifications or training to prove your dedication to finding new employment.
The rule does not apply to all situations. Courts will evaluate additional training to determine whether it is required and whether you could secure comparable work without it.
What Happens If the Employee Fails to Mitigate?
Negligible job search efforts by an employee can lead to reduced severance benefits. Employers will use your lack of mitigation efforts to reduce your severance payments by showing you had access to appropriate job opportunities.
After court approval, your severance payment may decrease according to the income you could have earned by conducting reasonable job search efforts. Adhering strictly to mitigation requirements becomes vital for your financial recovery because failure to do so could result in substantial benefits loss.
The law requires you to minimize your damages following job termination. Combining job search efforts, suitable offer acceptance and training opportunities can help defend your severance package and your financial security.
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