By Matt Lalande in Employment Law on March 05, 2020
Yes, in fact, our Supreme Court of Canada has expressly recognized that inducement is a factor to be considered in the reasonable notice analysis. (Wallace v. United Grain Growers Ltd.) The inducement factor comes into play when an employee has left a relatively long term, secure job and is terminated from new employment a short time after being hired.
Inducement may increase the reasonable notice period, but not every inducement will carry the same weight. The effect of inducement:
It’s important to understnd that the inducement factor does not arise every time an employer dismisses a short-term employee who had long, secure service with a prior employer. An employee who willingly leaves his prior employment will not necessarily be induced. To constitute inducement, the new employer’s conduct must go beyond the ordinary degree of persuasion. For example, inducement may be a factor where:
Inducement is less likely to be found where:
The employee applied to the new position through an advertisement.
An employer may be able to guard against an allegation of inducement by including a probation clause in the written employment contract. Probationary employment is understood by the parties to be unstable and tentative, and is inconsistent with the promise of long term job security required to prove inducement.
Our employment law firm is based in Hamilton and we serve both employer and employee clients all over Ontario. If you have a question about inducement and wrongful dismissal, call us at 905-333-8888 and we would be happy to schedule a telephone of in-person consultation to discuss your issue.
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