Mitigation after termination

Question: Do I need to look for a new job right after I’ve been fired? 

Answer: Unless your contract has specific terms that say otherwise, you are entitled to reasonable notice of your dismissal or pay in lieu of that notice. This principle is part of the common law, i.e. the law that comes from cases decided in court, and this notice pay is often greater than the payments required under the Employment Standards Act.

If you are fired and do not receive sufficient notice or pay in lieu, you may be able to go to court and seek damages equivalent to the notice you should have received. However, you have an obligation to lessen your loss by trying to find a new job (the law calls this “mitigation”). If you fail to do this, a judge hearing your case could reduce the damages you might otherwise have received. Mitigation does not mean you are required to take any job. For instance, if you were a middle manager, you do not need to immediately take an entry-level job paying minimum wage. Mitigation does mean you need to act reasonably and without delay to look for work. For starters, you should make 2–4 applications per week for jobs with similar pay and responsibility to the one you were fired from.

What is reasonable depends on your specific circumstances. It is always a good idea to consult with a lawyer if you have been fired, especially if the employer tries to have you sign anything at this time.