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04 September 2008 / Jeremy Nixon
Issue: 7335 / Categories: Features , Employment
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Managing the credit crunch

Part 2: Jeremy Nixon reviews the law in relation to mitigation of loss

It is well established that an individual who has been unfairly or wrongfully dismissed by their employer is under a duty to take reasonable steps to mitigate their loss. The question of loss is often a key battle ground in any litigation, particularly where the parties are discussing the possibility of a settlement. Frequently, employees have high expectations in terms of the amount they are likely to recover. On the other hand, employers often prefer to focus on the question of loss particularly where their case in relation to liability is not strong. The employer's primary aim here will be to inject what they regard as some realism into the employee's expectations.
General principles

A claimant in a wrongful or unfair dismissal case is required to give credit for any sums received following their dismissal either by way of social security payments or earnings. Further, the claimant cannot recover damages for any losses which he could reasonably have avoided. The duty

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NEWS
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The Supreme Court has restored ‘doctrinal coherence’ to unfair prejudice litigation, writes Natalie Quinlivan, partner at Fieldfisher LLP, in this week' NLJ
The High Court’s refusal to recognise a prolific sperm donor as a child’s legal parent has highlighted the risks of informal conception arrangements, according to Liam Hurren, associate at Kingsley Napley, in NLJ this week
The Court of Appeal’s decision in Mazur may have settled questions around litigation supervision, but the profession should not simply ‘move on’, argues Jennifer Coupland, CEO of CILEX, in this week's NLJ
A simple phrase like ‘subject to references’ may not protect employers as much as they think. Writing in NLJ this week, Ian Smith, barrister and emeritus professor of employment law at UEA, analyses recent employment cases showing how conditional job offers can still create binding contracts
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