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t ransformationfueledto alargeextentby revolu-

tionarytec hnologicaladvancesi ncomputerstelecommunicationsand

digitalelectron ics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sur viveina erceglobalcompeti-

tiveenviron ment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t hatthey are beerable to eectivelycompete in theg lobal

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

highlysoughta eremployeesbetweenorgan izations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a ndterminatedathighspeed muchlike

 BrianGrosmanist hefoundingandse niorpartnerofGrosma nGrosmanGale

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

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

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

transformationTothriveanorganizat ion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routi nely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termin ationoftheemploymentcontractuponreason-

ablenotice

Themainfactorsconsideredbythecourtstodayindeterm ining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t he leadingca seon reason able

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

dal factorsareoutdatedirrelevantorincapableofbeingappliedbyt he

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

thecontrar ytheBa rdalfactors haveendured through thedecades and

shouldconti nueto do soi n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dismi ssalcaseoenr equiresthecour ts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a s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T heEconomistOctober

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

followingfactorsases sentialtodeterm iningtheper iodofreasonablenoticethe

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

ageandtheavailabilityofsim ilaremploymenthavingrega rdtotheemployees

experiencetrai ningandqua lications

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