Published on: July 24, 2025
You Were Wrongfully Dismissed — But There’s One Thing That Could Undermine Your Case
You’ve just been let go. Maybe it was without cause. Maybe the severance offer felt unfair. Or maybe you weren’t given anything at all.
You’re upset — rightfully so.
You might be speaking to a lawyer, or planning to file a wrongful dismissal claim. You’re ready to stand up for what you’re owed.
But there’s one common mistake that quietly weakens a strong case:
Not trying to find another job.
In Ontario, if you’ve been wrongfully dismissed and plan to pursue severance through a legal claim, the court expects you to do something in return: make a reasonable effort to find comparable work. It’s called the duty to mitigate — and many employees don’t realise how important it is.
The law doesn’t expect you to accept the first job offer that comes your way.
But it does expect you to try. And if you don’t, your compensation could be reduced, even if your case is otherwise rock solid.
Let’s discuss further what that really means — and how to protect your claim without compromising your recovery.
Read More:
Constructive Dismissal in Ontario: When Employers’ Actions Force a Resignation
Termination Clauses in Employment Contracts: How to Protect Your Common-Law Rights
What Is the Duty to Mitigate in Ontario Employment Law?
In Ontario, when you’re terminated without cause and eligible for severance, the law gives you the right to seek compensation — but it also gives you a responsibility: to try finding similar work.
This is known as the duty to mitigate.
It doesn’t mean you have to take the first job that comes your way. And it certainly doesn’t mean you have to accept something far below your qualifications or pay grade.
But the law does expect you to make reasonable efforts to find comparable employment. That might include:
- Searching job boards
- Applying to positions in your industry
- Updating your resume
- Attending interviews
- Following up on leads
You’re not expected to land a new role immediately. But if you don’t show that you tried, a court may say you didn’t mitigate your damages — and reduce the amount of severance or common law compensation you receive as a result.
The essential point is ? In Ontario employment law, protecting your severance often starts with showing effort — not results.
Why Mitigation Affects Your Severance and Wrongful Dismissal Claim
Many employees assume that once they’ve been wrongfully dismissed, they’re entitled to full severance — no matter what.
But under common law, that’s not how it works.
When calculating severance pay in Ontario, courts assume that an employee will make reasonable efforts to find new, comparable work. If you don’t — and there’s no good reason for the delay — a judge may reduce your compensation, even if the dismissal itself was unfair.
This applies even in strong wrongful dismissal claims.
Let’s say the court determines you were entitled to six months of severance pay. But if you didn’t apply for any jobs during that time — or waited too long to start — the judge might reduce your award to three or four months. That’s a loss of real income for no other reason than not showing reasonable effort.
In other words, failing to mitigate can cost you — even when you’re in the right path.
It’s one of the most avoidable mistakes employees make during severance negotiations and legal claims.
Real Examples of Mitigation Done Right — and Wrong
Example 1: Mitigation Done Right
Karen was let go from her marketing job after sixteen years of service. While upset, she updated her resume within a week, began applying to similar roles, and kept track of her applications and interview calls. Even though it took her four months to land a new position, the court saw that she made consistent, reasonable efforts. She was awarded the full six months of common law severance pay she was owed.
Example 2: Mitigation Done Wrong
Mark was terminated without cause but didn’t apply to a single job for almost seven months. He said he needed time to “clear his head” and wasn’t emotionally ready to re-enter the workforce. While understandable, the court found that Mark didn’t meet his duty to mitigate. As a result, his severance was reduced from five months to just two.
The difference? Not who found a job faster — but who took action and kept a record of it.
What Counts as Reasonable Job-Hunting?
You don’t need to apply to every job on the internet. You just need to make a good faith effort to find work that’s similar to what you had — and keep some record of that effort.
Here’s what courts in Ontario generally see as “reasonable” mitigation:
- Applying to jobs in your field or related industries
- Keeping a log of where and when you applied
- Responding to recruiter messages or networking opportunities
- Going to interviews, even if they don’t work out
- Updating your resume or LinkedIn and actively monitoring listings
It’s not about volume. It’s about effort, consistency, and documentation.
If you can show that you tried — even if you didn’t get hired right away — you’ve likely satisfied your duty to mitigate, and your full severance pay is still in play.
Let’s frame it like this: treating your job search like a part-time job helps protect your legal rights, not just your next pay cheque.
What If You’re Not Ready Emotionally?
Losing your job — especially when it wasn’t your fault — can feel like a punch to the gut.
You might be angry. Or embarrassed. Or just… numb.
It’s normal to need time to process. But here’s the hard truth: the law may still expect you to move forward. Ontario courts understand that job loss takes a toll, but they also assume that you’ll make some effort to get back on your feet — even if you’re not emotionally 100% there yet.
That doesn’t mean pushing through burnout or faking confidence you don’t have.
It means doing what you can, when you can — and keeping track of it.
Even a few applications each week. A few updated resumes sent out. A note about an interview, or a call you returned. These small steps matter — and they can protect your severance, your credibility, and your legal standing.
At Taman Singh Law, we understand what it means to go through this — not just legally, but personally. If you’ve been wrongfully dismissed and want to know what you’re truly owed, we’ll help you pursue what’s fair. And we’ll guide you through every step — with clarity, not pressure.
???? Email: taman@rzcdlaw.com
???? 647-360-1141
???? Offices in Brampton & Mississauga – Serving employees across Ontario
About The Author
Taman Singh is an employment lawyer with a focused practice in wrongful and severance negotiations. He is dedicated to advocating for employees and ensuring they receive the compensation they are rightfully owed. With a sharp understanding of Ontario employment law and a results-driven approach, Taman consistently helps clients navigate complex workplace disputes and maximize their severance packages.
