Baxter, at age 45, was hired as the general manager of the CountrySide Shipping Company by Carrothers, the company president. The initial contract of employment was for a three-year term and was embodied in an exchange of letters between Baxter and Carrothers in 2008. At the end of the three-year term, Baxter continued on as general manager, receiving annual increases in salary, executive profit sharing, pension contributions, and discretionary bonuses, if business was exceptionally good in a given year. In January 2020, for no apparent reason, Carrothers called Baxter into his office, and told him his services were no longer required. Carrothers offered Baxter a week's salary as "severance pay." At the time of termination, Baxter was earning a salary of $70,000 per year, received company paid pension contributions of $5,000 annually, and, in 2019, had received $3,000 from profits shared, and a $5,000 bonus. Baxter, on receipt of notice of termination from Carrothers, must immediately seek other employment to mitigate his loss, if he intends to take legal action against the company for lost wages.

Question

Quizplus · Accepted Answer

Under employment law, an employee who is terminated without cause is generally expected to make reasonable efforts to mitigate their losses by seeking alternative employment. This principle applies to Baxter's situation, where he may pursue legal action for wrongful termination or breach of contract but must also attempt to find new work to reduce the damages he claims.

Baxter, at Age 45, Was Hired as the General Manager