Obligations, Pitfalls, and Contradictions in the Law of Hiring, Negligence, and Performance Reviews

• Author: Peter Israel and Carita Pereira
• Pages: 77-100



ObligationsPitfallsand

ContradictionsintheLaw

ofHiringNegligenceand

PerformanceReviews

Peter Israel and Carita Pereira*

A. INTRODUCTION

Overtheyearswehaveseenacompletetransformationoftheemploy-

mentrelationshipfromthedaysofmasterandservantCentraltothis

transformationarethedevelopmentsinemploymentlawinwhichthe

courtshaveembracedaconceptualshiinthemannerinwhichtheem-

ployeeasanentityisperceivedTheevolutioninthewayemployeesare

conceptualizedisepitomizedbythenotionthatemployeesasagroupare

vulnerablelackinginbargainingpowerorstrengthAnexaminationof

recentcaselawdemonstratesthatcharacterizingemployeesasawhole

asbeinginavulnerablepositionvis-à-visemployershasnowbecomea

foundationalprincipleinemploymentlawThereisnodoubtthatthis

principleplaysasignicantroleinemploymentdecisionsThequestion

ishowsignicantshouldthisrolebeWhileinequalityofbargaining

powermaybearealityintheinteractionsbetweensomeemployersand

employeesthesimplefactisthatitisnottherealityinallsituationsThe

vulnerableemployeeisnotauniversalfactwhichshouldbeacceptedas

astandardassumptionapplicabletoallcasesTothecontraryasenior

executiveoenhasalevelofsophisticationknowledgeandexpertise

thatbeliestheideaofunequalbargainingpowerInfactitisnotuncom-

monthatitistheexecutivewhondsherselfinapositionofpowerwith

signicantleverageovertheemployer

∗ PeterIsraelandCaritaPereiraarebothpartnersatIsraelFoulonLLP

PICP

Thispaperwillexaminesomeareasinemploymentlawwherethe

conceptsofinequalityofbargainingpowerandemployeevulnerability

frequentlyplayaroleinthecourtsdecisionmakingorformthebasis

fortheapplicablelegislativeprovisionswhetherbywayofexplicitref-

erenceorunderlyingassumptionsThispaperwilllookatthelawsur-

roundingpreemploymentnegligentmisrepresentationsandwrongful

hireclaimsItwillalsoexploreotherissuesarisinginthehiringprocess

including human rights considerations relating to job advertisements

applicationformsinterviewsandmedicalexaminationsaswellascon-

ductingemployeecreditchecksandcriminalrecordchecksFinallyan

analysisofthekeyissuesrelatedtoperformancereviewsparticularly

withrespecttoconstructivedismissalwillbeprovided

 

The Wrongful Hire Claim

Whenemployersandemployeesaregoingthroughthecourtingpro-

cess prior to entering into an employment relationship both parties

haveaninterestinpuingtheirbestfaceforwardinordertoaractthe

otherThusanemployeemayembellishherpreviousexperienceoran

employermay overstate the familia l and supportive atmosphere that

its companyprovides Howevert here is a ne line between port ray-

ingoneselfforajobprospectinafavourablelightandmisrepresenting

onesabilitiesorthetruenatureofanemploymentopportunityOnce

this line is c rossed the result can be liabil ity fornegl igentm isrepre-

sentationwhetherthemisrepresentationrelatestostatementsactually

madeoromiingtodiscloserelevantinformation

The starting poi ntfor any di scussion regarding preemployment

negligent misrepresentations must be the leading Supreme Court of

CanadadecisioninQueenvCognosIncInthiscasetheCourthadtode-

terminewhetherthepreemploymentrepresentationsmadebytheem-

ployerduringthehiringprocesscrossedthelineintothetortofnegligent

misrepresentationMrQueenwasacharteredaccountantemployedin

arelativelywellpayingandsecuremanagerialpositionHoweverhe

wanted to nd a job that would make more use of his expertise a nd

wouldprovidehimwithmorechallengingopportunitiesCognosIncor-

poratedwaslookingforanaccountanttohelpdevelopanewproductline

ofaccountingsowareDuringMrQueensinterviewhewastoldby

 RSEchlinCMThomlinsonForBeerorForWorseAPracticalGuidetoCanadian

EmploymentLawAuroraONAuroraProfessionalPress

 CCELSCCCognos