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ARTICLE · 14 NOVEMBER 2024

Recruiting Risks: How Inducement Impacts Employer Liability For Notice Periods

Employers who actively recruit individuals from secure, well-established positions may face heightened liability for providing extended common law notice if the employment relationship does not work out.

CanadaEmployment and HR

Employers who actively recruit individuals from secure, well-established positions may face heightened liability for providing extended common law notice if the employment relationship does not work out. Courts often consider inducement—a situation where an employee is persuaded to leave a stable role for a new opportunity—a key factor in determining notice periods.

This was underscored in a recent British Columbia case where a recruited employee was awarded 12 months' notice, largely influenced by the circumstances of their recruitment. To mitigate such risks, employers are advised to include clear and enforceable contractual terms that limit the employee's entitlement to common law notice upon termination.

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