Part 2: Jeremy Nixon reviews the law in relation to mitigation of loss
It is well established that an individual who has been unfairly or wrongfully dismissed by their employer is under a duty to take reasonable steps to mitigate their loss. The question of loss is often a key battle ground in any litigation, particularly where the parties are discussing the possibility of a settlement. Frequently, employees have high expectations in terms of the amount they are likely to recover. On the other hand, employers often prefer to focus on the question of loss particularly where their case in relation to liability is not strong. The employer's primary aim here will be to inject what they regard as some realism into the employee's expectations.
General principles
A claimant in a wrongful or unfair dismissal case is required to give credit for any sums received following their dismissal either by way of social security payments or earnings. Further, the claimant cannot recover damages for any losses which he could reasonably have avoided. The duty to mitigate only arises following dismissal and at this point
