The appellant employee was terminated without cause and was entitled to six months' pay in lieu of notice under his employment agreement.
The agreement was silent on the duty to mitigate.
The employee found new employment after two weeks, and the employer ceased paying the salary continuance.
The application judge held the employee had a duty to mitigate.
The Court of Appeal allowed the appeal, holding that where an employment agreement contains a stipulated entitlement on termination without cause, the amount is either liquidated damages or a contractual sum, and mitigation is irrelevant unless expressly required by the contract.