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If an employee who is terminated from work demands or sues for more severance, and they subsequently earn new income from new work before their severance matter is resolved, all that new income earned by the employee within the reasonable notice period will be subtracted from any severance claim against the employer. This is called …

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Introduction The Ontario Court of Appeal, in Brake v. PJ-M2R Restaurant Inc., 2017 ONCA 402 (CanLII), recently clarified the law of mitigation. The duty to mitigate is an employment law principle that requires employees who are terminated without reasonable notice (i.e. a wrongful dismissal) to look for a new job. If a new job is …

Read More about When is New Income Deductible (Severance)?