qwerty Wrongful Hiring: Don't Make These 4 Mistakes

Wrongful Hiring: Don’t Make These 4 Mistakes

You’ve found the candidate who ticks all the boxes—skills, experience, and a personality that fits right into your team. But then, the conversation shifts. 

They voice concerns about your workplace conditions or hint that a competitor might outbid your offer. Do you stick to the facts, even if it risks losing them? Or do you make promises you hope to keep but aren’t certain about?

What may feel like slight embellishments to secure a hire can easily turn into misrepresentation. In Canada, over 25% of hiring managers admit they’ve made costly hiring mistakes—often by onboarding someone who soon left for better pay or more flexibility, or simply wasn’t the right match.

In this blog, we’ll delve into the errors that could leave you vulnerable to wrongful hiring and how to steer clear of them.

 

What Is Wrongful Hiring Under Canadian Law?

Wrongful hiring refers to situations where an employer’s misleading statements or promises lead a candidate to accept a job under false pretenses. 

Just as job seekers might sometimes exaggerate their qualifications, employers can also be guilty of overpromising and under delivering when trying to secure top talent.

While minor exaggerations from an employer might not always be legally actionable, the situation changes if an applicant can prove they would have never accepted the job had they known the truth.

 

Canada’s Leading Case on Wrongful Hiring

A landmark case in this area is Queen v. Cognos Inc., where the employee left a stable and lucrative job in Calgary to join a software firm in Ottawa. 

He had made the move based on the company’s promise that he would play a key role in a project they suggested would last at least two years. However, the employment agreement stated that he could be terminated or reassigned with just one month’s notice, a detail that was not clearly communicated to him before he accepted the position. 

The Canadian Supreme Court awarded him damages (inflation-corrected) in excess of $127,000.

 

4 Mistakes That Can Expose You to a Wrongful Hiring Claim

 

1. Making Unverifiable Promises

It might seem harmless to tell a candidate what they want to hear, but any verbal promises—whether about promotions, benefits, or working conditions—can come back to haunt you. 

For example, in a case involving KPMG, a candidate accepted a job based on the belief that she could eventually be made partner. When this didn’t materialize and she was let go, she sued for wrongful hiring, claiming she was misled about her future prospects.

2. Failing to Put the Entire Offer in Writing

An offer letter is your safeguard. By putting all terms in writing, you ensure that nothing is left to interpretation. This step also gives you time to review and confirm that you can actually deliver on what’s being promised. 

Anything not explicitly stated in the written offer should be considered non-binding and excluded from any verbal discussions.

3. Overstating the Job’s Security

Job security is a significant concern for many candidates. If you suggest that a position is more stable than it truly is, you could be setting up unrealistic expectations. 

For instance, a company might hint at long-term employment opportunities when, in reality, the role is contingent on short-term funding. This kind of exaggeration can lead to claims if the role ends sooner than expected.

4. Misrepresenting Benefits

Benefits are often a deciding factor for candidates, especially those with specific health needs. 

In one case, a candidate with cystic fibrosis accepted a job based on assurances about the company’s long-term disability plan. When the benefits didn’t meet his needs, he had grounds for a wrongful hiring claim. Ensure the information provided is transparent and accessible during the hiring process.

 

Minimize Risks With a Top Recruitment Agency in Toronto

Partnering with a recruitment agency in Toronto, like TDS Personnel, can significantly reduce your risks. 

With over 45 years of experience, we excel at matching top talent with the right opportunities, ensuring that expectations are clear and achievable–for you and for candidates.

Get in touch with us and find out how you can recruit better in Toronto’s competitive job market.