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s eena completetransformationof theemploy-

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

transformation aret hedevelopmentsin employmentlaw inwh ich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bargaini ngpowerorstrengthAnexaminationof

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

asbeingi navul nerablepositionvis-à-vis employershasnowbecomea

foundationalpri nciplein employmentlawThere is nodoubt thatt his

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

ishow signicant shouldth isrole beWh ilei nequality ofbargain ing

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c asesTothe contraryasenior

executiveoen has a level ofsophi sticationknowledgeand experti se

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Perei raarebothpart nersatIsraelFoulonLLP

PICP

Thispaper willexa minesome areasin employmentlawwheret he

conceptsofinequalit yofbargainingp owerandemployeevulnerability

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

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

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

roundingpre employmentnegligentmi srepresentationsa ndwrongf ul

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chec ksandcr iminal recordchecksFin allyan

analysis of the keyi ssuesr elatedto performa ncerev iewspart icularly

withrespecttoconstr uctivedismissalwil l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i ngtheirbestfaceforwardi nordertoaractthe

otherThusan employeemayembellishher previousexper ience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prospec tinafavourablelightandmisrepresenting

onesabilities orthe tr uenatureof an employmentopport unityOnce

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

sentationwhether the misrepresentationr elatestost atementsactual ly

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ch arteredaccountant employedin

ar elativelywell paying and secu re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accounti ngsoware Duri ngMr Queensinterviewhe wastold by

 RSEchlinC MThomlinso nForBeerorForWorseAPracticalGuid etoCanadian

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

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