Dismissed employees have a duty to mitigate: to make reasonable efforts to replace their lost income. In Evans v. Teamsters Local Union No. 31, 2008 SCC 20, the Supreme Court of Canada considered whether that can mean going back to work for the employer who just let you go.

Mr. Evans had worked for the union for over 20 years as a business agent in the Yukon. After a change in union leadership, he was dismissed. In negotiations, the union offered to let him return to work for the rest of a notice period. He refused unless his other demands were met. The Supreme Court held that he had failed to mitigate by refusing to return, and he was not awarded damages for the notice period.

Offers to return are not common, and most dismissed employees are not expected to go back. But if an employer makes a genuine offer of the same job on the same terms, an employee should get advice before refusing, and should explain any reasons in writing. Courts apply the test objectively, so a general feeling of hurt is not enough on its own.
Generally a dismissed employee isn't required to accept a demotion or a significant pay cut to mitigate, though each case depends on the circumstances.
Looking for comparable work and keeping a record of applications and interviews. Income from a new job during the notice period usually reduces the damages.
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This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.
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