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  1. What is the duty to mitigate loss?
  2. When does the duty to mitigate loss arise?
  3. What does “reasonable” mean in these circumstances?
  4. How should the Tribunal deal with mitigation?
  5. How can I prove that I’ve mitigated my loss?

What is the duty to mitigate loss?

In unfair dismissal cases the person who has been (unfairly) dismissed (“the Claimant”) has a duty to mitigate their losses after they are dismissed. This means that they are obliged to try and find other work as soon as reasonably possible so as to decrease their losses. Dismissed employees should therefore try and obtain new employment as soon as possible after their dismissal. This doesn’t mean that the Claimant will be penalised if they don’t find a job but it does mean that they will be penalised by the Employment Tribunal if they don’t make a reasonable effort to find a job.

When does the duty to mitigate loss arise?

The duty to mitigate loss arises when the employee is dismissed. An unreasonable failure to comply with an order for reinstatement or reengagement will therefore be deemed a failure to mitigate. Note, however, that a simple failure to comply with such an order will be a failure to mitigate – only an “unreasonable” failure. Further, the duty to mitigate losses doesn’t arise during the notice period but only after termination (you’re still employed during the notice period).

What does reasonable mean in these circumstances?

The employee must take reasonable steps to find new employment. What is reasonable depends on the facts. The circumstances of the particular employee must be taken into account, so the test changes into one a more subjective one – has the particular employee possessing the characteristics that they do taken reasonable steps to find alternative employment?

The duty to mitigate is generally held to have been breached if the employee refuses to, for example, accept a job with lower wages or refuses to accept a job because it pays less than their unemployment benefit. Further, the acceptance of a job which is very much lower paid than their previous job may be deemed to be a failure to mitigate. The Employment Tribunal will look at the conduct and the intentions of the employee to determine whether their conduct has been reasonable.

How should the Tribunal deal with mitigation?

The Tribunal should look at the employee’s circumstances at every stage since they were dismissed from their job and consider whether they have acted unreasonably at any particular stage. For example, if the employee has made reasonable efforts to find new employment for two months after his job but stops looking for a job after that then the Employment Tribunal must look at a failure to mitigate loss from the beginning of the period after the initial two months. The Employment Tribunal will determine what the employee would have been earning if he’d found a job after those two months and use this to calculate the decrease in compensation due to the failure to mitigate.

What the Employment Tribunal should not do is apply a “broad brush” approach and reduce the whole compensatory award by a percentage.

Redmans’ specialist unfair dismissal solicitors represent both employees and employers in the Employment Tribunal

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Anonymous

Both Rana and Chris were fantastic. From the first phone call I was confident my matter was in good hands. I was not disappointed. I would highly recommend Redmans. Thank you again for all of your support and advice.

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Federico S

Great advices and communication. Through Redmana I obtained match more than what I thought. Highly recommended

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Tom G

A good and efficient service with the required legal advice provided for a settlement agreement.

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Francis T

The solicitor I used was Chris Hadrill, who I found extremely professional and I felt that he made me feel at ease, considering the subject matter he was assisting me with.

Posted 1 week ago

Anonymous

Chris provided excellent assistance with the negotiation of my settlement agreement. From start to finish, I was consitently updated and advised on the best course of action to take. I would highly recommend Chris and Redmans Solicitors.

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Anonymous

They are busy people but manage well so generally I would recommend them.

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Anonymous

Very efficient and professional service from my first phone call making an enquiry. Timescales of the matter in hand were met and within the agreed budget. Would highly recommend Redmans

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Really very good service, always available to answer questions, provide my with any information I needed to make informed decisions.

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Anonymous

Offered good support and advice

Posted 3 weeks ago

Anonymous

Chris reviewed and managed my compromise agreement swiftly, accurately, helpfully, and on budget. His input on key non-compete clauses was valuable, his communications were clear and concise, and he was always swift in responding. Highly recommended.

Posted 3 weeks ago

Gurbir C

Excellent legal advice service.

Posted 3 weeks ago

Tim

I found Redmans to be very helpful and efficient in conducting my case which was concluded in a timely and diligent manner

Posted 3 weeks ago

Anonymous

I found Redman Solicitors to be very good and worked very well to an extremely tight timescale. I would happily recommend them again especially Rana.

Posted 3 weeks ago

Anonymous

I received excellent, knowledgeable and critically timely support from Chris regarding my settlement agreement, and would wholeheartedly recommend Chris in these matters.

Posted 3 weeks ago

Katelyn

The solicitor communicated well with me and made sure I understood everything. He did everything needed for my settlement agreement and tried to get the wording changed in my favour too.

Posted 4 weeks ago

Anonymous

Redmans provided excellent services

Posted 4 weeks ago

Sibel U

Excellent service

Posted 4 weeks ago

Peter S

I was very happy with the level of advise I received from Caroline Lewis, and a very professional service fron Chris, The advice given really helped me and I was comfortable to sign the settlement agreement following my redundancy. I would be more than happy to recommend your services to others.

Posted 4 weeks ago

Derek S

I very much appreciated the help provided by Redmans in the settlement agreement agreed with my former employer.

Posted 1 month ago

Waseem M

It was the first ime I used Redmans Solicitors and to be honest, thety were amazing. Rana Tandon and Chris Hadrill were out of this world. They made the process as simply and smooth as can be. Thank you so much for all your support over the last week.

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Anonymous

Worked very quickly considering right deadlines - and gave great advice

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