Sep 10, 2011

DUTY TO MITIGATE LOSS By The Dismissed Employee

In a contract of employment, the dismissed employee is under a duty to minimise his/her loss. The law would not allow a claim for damages in respect of any loss which the employee could with reasonable diligence have avoided by obtaining alternative employment: Beckham v. Drake (1849) 2 H.L. Cas. 579.) 

In the case of Secretary of State for Employment v. Wilson (1978) 3 All. E.R. 137, it was held that a dismissed employee who had started a new employment with another employer immediately after his dismissal and on similar terms as his previous employment was precluded from claiming damages for wrongful dismissal.  But, the employee is not bound to accept employment of a different kind, or even at a lower position with a similar remuneration: Shindler v. Northern Raincoat Ltd. [1960] 2 All. E.R. 239 and Edwards v. Society of Graphical and Allied Trades [1970] 3 All. E.R. 689.)

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