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Pay in lieu of reasonable notice

If an employee is entitled to advance reasonable notice of dismissal, but does not receive proper notice of the dismissal, then the employee will instead usually be entitled to ‘pay in lieu of reasonable notice’ as compensation for the wrongful dismissal. Pay in lieu of reasonable notice is intended to compensate the employee for the salary and benefits that they would have received if they had been given proper reasonable notice.1

The amount that an employee is entitled to as pay in lieu of notice may be reduced if the employee mitigates their losses by locating new employment (or if the employee fails to make reasonable efforts to mitigate).

  1. Johnson v. Global Television Network Inc. (CH Vancouver Island), 2008 BCCA 33 at para 23 []