There are many individuals who view the loss of a job as a sign that they need to return to school, whether to enhance their credentials for a job search or simply to ‘buy some time’ until the job market improves. What a former employer might owe you, however, depends on when you make that decision.
The general principle is that an employee needs to make ‘reasonable efforts’ to look for new work. In the past courts have agreed that if a terminated employee spends several months making an earnest effort to find new work, and then decides to return to school because they simply cannot find anything, then they should not be penalized. If, however, you decide to jump into an educational program right away and then later turn around and sue for wrongful dismissal, courts can find that you have not made the necessary efforts to look for work after your termination.