May 6

Inducement Issues

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Issues with Inducement

Inducement
Competitive attitudes are quite prevalent in today’s job market. While employers are looking for better and more qualified employees, employees are looking for jobs with increased compensation, benefits and seniority. While there is no harm wherein the employee is seeking a new job with more perks, and the employer is interested in hiring them, a problem arises when that pursuit becomes more one-sided.

Signs of Inducement Include:
-Repeated Solicitation
-Offers of Employment with Limited Timeframes
-Unrealistic Promises (i.e bonuses at a rate of 60 or 70% of sales, guaranteed 30 years of employment)

Excessive Encouragement

Inducement Found to Increase Notice Period
Jurisprudence has recognized inducement as a significant factor in elongating the notice period when an employee is terminated from their position.

In the case of Dias v. Paragon Gaming EC Co. [2010] A.J. No. 1450, the Plaintiff left his steady job of 16 years at another gaming company in order to work for Paragon. He was promised significant compensation, bonuses, and a successful career, but was terminated approximately one and a half years later. The court found that the actions of the Defendant in inducing Dias warranted a notice period of four months, double what he would have received had there been no act of inducement.

Similarly, in the case of Egan v. Alcatel Canada Inc. [2006] O.J. No. 34, the Plaintiff left her steady job of 20 years for a higher paying position. Less than two years later, she was terminated. The court found that an appropriate notice period was nine months’ pay, plus job search expenses of $564.68.

Again, in the case of Baldwin v. Quinsam Coal Corp. [1999] B.C.J. No. 679, the Plaintiff left the company which he had spent 22 years with for increased compensation and the promise of 15 to 20 years with Quinsam. Less than two years later, after he had been laid off, he was told that there was no work for him with the company. The court ordered that Baldwin be given twelve months’ notice citing inducement as an elongating factor.

For Employers:
As an employer, it is very important that any recruiting efforts you use are not within the realm of inducement. You can also incorporate certain clauses into your contracts to avoid claims of inducement at a later date. For advice on how to avoid inducement claims, contact Monkhouse Law today.

For Employees
If you have been lured away from secure employment with the promise of a better career only to be terminated, you may have a legal remedy available to you. Contact Monkhouse Law today to see what options are available, and how an Employment Lawyer can assist you in this regard.