Canada: The Duty To Mitigate: When Is An Employee Required To Accept An Offer To Return To The Same Employer?

Last Updated: December 1 2015
Article by Ashley Savinov

The British Columbia Court of Appeal (the "BCCA"), in Frederickson v Newtech Dental Laboratory Inc., 2015 BCCA 357, overturned the trial judge's finding that Frederickson had failed to mitigate her damages because she refused to accept an offer of re-employment from her employer, Newtech Dental Laboratory ("Newtech").

Frederickson was employed with Newtech, a small business specializing in making dental crowns, for more than eight years. She took a medical leave of absence at the end of April 2011. When she reported back to work on July 20, 2011, her employer advised her that she was laid off due to insufficient work. That September, Frederickson sent a demand letter to her employer after taking the position that she had been wrongfully dismissed. On September 23, 2011, Newtech directed Frederickson to return to work three days later. Frederickson subsequently commenced an action for damages for wrongful dismissal against Newtech. Prior to learning that an action had been commenced against it, Newtech offered to re-employ Frederickson with an offer to pay her unpaid wages between July 20, 2011 and September 26, 2011, the date she was invited to return to work. Newtech again on two separate occasions, offered to re-employ Frederickson at her same position, salary and benefits and to pay her lost wages to the date of the first offer to re-employ, September 23, 2011. Frederickson declined all offers due to her employer's behavior towards her since her purported layoff in July 2011. She was unable to secure employment until the following August, after obtaining a diploma in bookkeeping; she found a new job as a bookkeeper.

Evidence at trial demonstrated that the owner of Newtech had, on two occasions, recorded private phone conversations he had with Frederickson without her knowledge. In addition, the owner had also discussed with another employee, the fact that Frederickson should be too embarrassed to return to work. The trial judge however, found that Frederickson had failed to take reasonable steps to mitigate her damages by refusing the offer of re-employment from Newtech. She was only awarded her damages for the period between July 20, 2011 and September 23, 2011, the date that she was first offered re-employment. Frederickson appealed this decision.

Madam Justice Saunders, writing for a unanimous BCCA, found that the trial judge erred in respect to the mitigation issue in two ways: (1) in failing to accord significance to the incomplete nature of the offer of re-employment; and (2) in failing to consider the element of mutual trust that was lacking from the work environment after July 20, 2011. She held that the September offer made by Newtech was not a "make whole" offer since it did not deal with Frederickson's lost income between July and the date she was directed to return to work since Frederickson was not offered any lost income until October, when Newtech offered lost pay only up to September 26.

As stated by Madam Justice Saunders, the question to be asked when mitigation is in issue is whether a reasonable person in the employee's position would have accepted the employer's offer. This analysis includes a consideration of the full nature of the employment relationship. She found that on the facts of this case, Frederickson's trust in her employer was eroded by the owner of Newtech in recording the private conversations and in breaching the confidence one would expect from their boss. She therefore found that on the facts of this case, any chance of repairing the employment relationship was lost.

Based on the two independent reasons outlined above, Madam Justice Saunders concluded that the trial judge erred in law by finding that Frederickson failed to mitigate her damages. She added that it is an infrequent case that requires an employee to accept re-employment. Frederickson's appeal was allowed.

This decision adds to the uncertainty about whether an employee is required to accept re-employment as part of the duty to mitigate in the context of wrongful dismissal. With inconsistent decisions flowing from different courts, employers who intend to re-employ a terminated employee will want to make the employee "whole" for any losses and ensure that their conduct towards the employee does not damage the mutual trust inherent in the employment relationship.

Please click below for the full decision:
Fredrickson v. Newtech Dental Laboratory Inc., 2015 BCCA 357 (CanLII)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.