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As severance pay is designed to compensate for lost income, a dismissed employee who found alternate employment after dismissal will have their severance pay reduced by the amount they are able to earn in their new job.
If the employee was working a second job before being dismissed but earned more in the second job (e.g. by putting in more hours) after dismissal, their severance pay will be reduced by the extra amount they have earned. (''Pakozdi v. B&B Heavy Civil Constructions Ltd''., 2018 BCCA 23 at paras 36-51)
=== 29. Employment Insurance Payback ===