The Evolution of Inducement

• Author: Brian A. Grosman, Q.C. and R. Mark Fletcher
• Pages: 369-399



TheEvolutionofInducement

BrianAGrosmanQCandRMarkFletcher*

A. INTRODUCTION

Canadianemployersandemployeesareinthemidstofaneverexpand-

ingglobaleconomictransformationfueledtoalargeextentbyrevolu-

tionarytechnologicaladvancesincomputerstelecommunicationsand

digitalelectronicsAscommercehasbecomeincreasinglyglobalithas

also become predominantly knowledge and service based as op-

posedtoitsmoretraditionalunderpinningsinthetradeandexchangeof

tangiblegoodsConsequentlyoverthepasttwodecadesmostCanadian

businesseshavebeenforcedtoadapttoandadoptnewtechnologiesand

modesofdoingbusinessinordertosurviveinaerceglobalcompeti-

tiveenvironmentThenewrealitiesfacedbyemployershavealsonot

surprisingly impacted on employeesEmployees must now arguably

more than at any other point in history be more knowledgeableand

skilledsothattheyarebeerabletoeectivelycompeteintheglobal

workforceandremainhighlyvaluedwithintheirindustryMovementof

highlysoughtaeremployeesbetweenorganizationsiscommonplace

whiletraditionalconceptsofloyaltytoonesemployerhavediminished

Lifetimeemploymentwithoneemployerisnotpartofcommercialreal-

ityIntodaysfastpacedandgloballycompetitiveeconomyemployment

relationshipsareoenformedandterminatedathighspeedmuchlike

 BrianGrosmanisthefoundingandseniorpartnerofGrosmanGrosmanGale

LLPMarkFletcherisanassociateatGrosmanGrosmanGaleLLP

BAGRMF

the operation of the technology that has encouraged th is commercial

transformationTothriveanorganizationmustbepositionedtoquickly

aracttoptalenttoitsenterpriseorloseouttoitscompetitorsPotential

employersoenoerinducementstoaractthebestemployeesInaddi-

tionprofessionalrecruitersareroutinelyhiredtoseekoutandrecruit

thebestandthebrightest

Todayseconomicrealitieschallengecurrentcommonlawprinciples

thatgoverntheemploymentrelationshipParticularscrutinyisrequired

oftheinceptionoftheemploymentrelationshipanditsconnectiontothe

principleoflawfulterminationoftheemploymentcontractuponreason-

ablenotice

Themainfactorsconsideredbythecourtstodayindeterminingthe

appropriateperiodofreasonablenoticeweredevelopedseveraldecades

agoinaverydierenteconomicclimateTheformerChiefJusticeofOn-

tario de cidedBardalvGlobeandMailtheleadingcaseonreasonable

noticefortysevenyearsagoinThisisnottosuggestthattheBar-

dal factorsareoutdatedirrelevantorincapableofbeingappliedbythe

courtstodeterminejustandfairperiodsofreasonablenoticetodayTo

thecontrarytheBardalfactorshaveenduredthroughthedecadesand

shouldcontinuetodosointheneweconomyHowevercourtstoday

mustemploytheBardalfactorstodeterminereasonablenoticeinlightof

currenteconomicrealities

InadditiontotheBardalfactorsdeterminingwhatconstitutesrea-

sonablenoticeinawrongfuldismissalcaseoenrequiresthecourtsto

reviewotherfactorssuchaswhethertheemployeewasinducedorlured

awayfromsecureemploymentbytheemployerCourtswillusuallyex-

tendtheperiodofreasonablenoticewhereitisfoundthattheemployee

wasenticedtoleavesecureemploymentbypromisessuchascareerad-

vancementgreaterresponsibilityjobsecurityandbeercompensation

Howeverthese factors appear to be less important to the a nalysis as

timeelapses

Corporateemployersarerequiredtoadaptrapidlytochangingmar-

ketdemandsandmustaccordinglybeabletoeectivelyandeciently

terminatetheemploymentofindividualswhonolongerservethecurrent

 TheBaleforBrainpowerTheEconomistOctober

 DLRdOntHCJBardalInBardalMcRuerCJidentiedthe

followingfactorsasessentialtodeterminingtheperiodofreasonablenoticethe

characteroftheemploymenttheemployeeslengthofservicetheemployees

ageandtheavailabilityofsimilaremploymenthavingregardtotheemployees

experiencetrainingandqualications

 WallacevUnitedGrainGrowersLtdSCRWallace