Edward Jones Employment Quiz

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Questions and Answers

What did Klassen agree to surrender upon leaving Edward Jones?

  • Only account records
  • Neither account records nor client files
  • All account records and client files (correct)
  • Only client files

How long was Klassen restricted from soliciting clients after his departure from Edward Jones?

  • Three months
  • Six months (correct)
  • One year
  • Indefinitely

What did the court consider more egregious than Klassen's initial breaches?

  • Returning files but retaining photocopies (correct)
  • Failing to notify clients of his departure
  • Sharing client information with others
  • Not returning any files

What type of information was classified as confidential and a trade secret for Edward Jones?

<p>All client information (B)</p> Signup and view all the answers

What changes were made to Ontario's Employment Standards Act in 2021 regarding non-competition clauses?

<p>They were prohibited except in very limited circumstances. (C)</p> Signup and view all the answers

In Alberta and British Columbia, what may courts issue to protect employers from departing employees using confidential information?

<p>Injunctions and search-and-seizure orders (D)</p> Signup and view all the answers

What did the court make clear regarding the proprietary property of Edward Jones?

<p>It was the information itself, not the physical records. (D)</p> Signup and view all the answers

Which of the following is an example of a case where an injunction was issued against an ex-employee?

<p>Phoenix Restorations Ltd v Drisdelle (C)</p> Signup and view all the answers

What is one reason many employers have adopted a 'no references' policy?

<p>To avoid potential tort claims of defamation. (B)</p> Signup and view all the answers

What is the implication of giving a reference that only confirms a job title and employment dates?

<p>It may lead to fewer inconsistencies on a candidate’s resumé. (A)</p> Signup and view all the answers

What can be a consequence of failing to perform educational and professional credential checks?

<p>Potential claims of negligence if the employee causes harm. (C)</p> Signup and view all the answers

What does the defence of justification pertain to in the context of defamation?

<p>That the statements were proven true. (D)</p> Signup and view all the answers

In what scenario is it especially critical for an employer to conduct reference checks?

<p>When the position is one of trust that could lead to harm. (C)</p> Signup and view all the answers

How is defamation described in the context of references?

<p>As involving either spoken or written statements. (D)</p> Signup and view all the answers

What common misconception do former employers have about negative references?

<p>They can be held liable for providing true negative references. (C)</p> Signup and view all the answers

Which of the following positions typically requires specific educational credentials by law?

<p>Accountant. (C)</p> Signup and view all the answers

What is the main purpose of including an attestation clause in job application forms?

<p>To legally protect the employer by ensuring applicants acknowledge the truthfulness of their information. (A)</p> Signup and view all the answers

What could be a consequence of providing misleading information on a job application?

<p>The applicant could face disqualification or dismissal based on misrepresentation. (C)</p> Signup and view all the answers

In which scenario can an employer be held liable during the hiring process?

<p>When they make misleading statements that prospective employees rely on, causing them damages. (B)</p> Signup and view all the answers

Which of the following statements is true regarding the attestation clause?

<p>It warns applicants that being dishonest may result in disciplinary action or dismissal. (C)</p> Signup and view all the answers

Which case illustrates the liability of employers for negligent misrepresentation in hiring?

<p>Queen v. Cognos Inc. (A)</p> Signup and view all the answers

What should employers specify in job postings concerning qualifications?

<p>Relevant educational or professional qualifications necessary for the job. (D)</p> Signup and view all the answers

What is a possible effect of an incomplete job application according to the attestation clause?

<p>Incomplete information can lead to administrative dismissal. (C)</p> Signup and view all the answers

What obligation do employers have during the recruitment process?

<p>To ensure that all material statements made are accurate. (C)</p> Signup and view all the answers

What is a potential risk of checking a candidate's social media references?

<p>Violation of personal privacy rights (D)</p> Signup and view all the answers

What percentage of employers in a UK study hired candidates based on their social media profiles?

<p>68% (D)</p> Signup and view all the answers

What is the suggested timing for conducting most types of background checks?

<p>After a conditional offer of employment is made (A)</p> Signup and view all the answers

Why might employers need to review guidelines for social media background checks in BC and Alberta?

<p>To comply with the Personal Information Protection Acts (A)</p> Signup and view all the answers

What type of statements in social media can lead to rejection of a candidate according to the study?

<p>Disparaging comments about former employers (B)</p> Signup and view all the answers

What should happen before contacting a current employer for a reference check?

<p>A conditional offer of employment should be made (C)</p> Signup and view all the answers

Which of the following is a negative impact of a candidate’s social media profile?

<p>Revealing criminal conduct (C)</p> Signup and view all the answers

What did employers commonly report about candidates with inappropriate content on their social media?

<p>They are often rejected for job positions (D)</p> Signup and view all the answers

What factor did the Ontario Court of Appeal consider in determining the status of the Keenans as dependent contractors?

<p>The length of time the Keenans worked exclusively for Canac (A)</p> Signup and view all the answers

Which of the following is an obligation that employers have to their employees but not to independent contractors?

<p>Paying overtime pay and vacation benefits (B)</p> Signup and view all the answers

What conclusion did the Court reach regarding the notice of termination for the Keenans?

<p>They were entitled to pay in lieu of notice only if stated in their contract (B)</p> Signup and view all the answers

Why do many organizations prefer to hire independent contractors over employees?

<p>Independent contractors require less paperwork and legal obligations (D)</p> Signup and view all the answers

In what way must independent contractors manage their own statutory deductions and taxes?

<p>Independent contractors are responsible for remitting their own taxes and deductions (B)</p> Signup and view all the answers

What was the court's decision regarding the Keenans' compensation after being dismissed?

<p>They received 26 months' pay in lieu of notice (D)</p> Signup and view all the answers

What is one reason larger organizations aim to reduce their employee head count?

<p>To decrease legal obligations and expenses (D)</p> Signup and view all the answers

Which of the following statements about independent contractors is NOT true?

<p>They are entitled to statutory employee benefits. (A)</p> Signup and view all the answers

What is the nature of negligent misrepresentation in the employment context?

<p>A false statement made carelessly by one party. (A)</p> Signup and view all the answers

What are the potential legal implications for employers who fail to conduct proper background checks?

<p>Potential liability for negligent hiring. (B)</p> Signup and view all the answers

What type of hiring relationship can inadvertently be created if parties do not intend to and miscommunicate their intentions?

<p>Employer-employee relationship. (B)</p> Signup and view all the answers

Which of the following best describes the role of executive search firms in recruitment?

<p>They can be liable for misrepresentations during the hiring process. (B)</p> Signup and view all the answers

What distinguishes employees from independent contractors in legal terms?

<p>The nature of their relationship with the employer. (C)</p> Signup and view all the answers

In the context of hiring, what does 'anticipatory breach' refer to?

<p>A potential refusal to perform promised employment obligations. (C)</p> Signup and view all the answers

What is a possible consequence of employers using inappropriate inducements to attract candidates?

<p>Liability for negligent hiring. (D)</p> Signup and view all the answers

Why is it important to understand the distinctions between full-time, part-time, and temporary employees?

<p>To ensure compliance with different legal and contractual obligations. (D)</p> Signup and view all the answers

The employer's representative informed Queen that the job was solely dependent on approval of funding for the project.

<p>False (B)</p> Signup and view all the answers

Queen accepted the job offer after having worked for approximately eight and a half years as a chartered accountant.

<p>True (A)</p> Signup and view all the answers

After moving to Ottawa, Queen was able to secure the funding for the project he was hired to manage.

<p>False (B)</p> Signup and view all the answers

The Supreme Court of Canada found that the employer failed to meet its duty of care owed to Queen during the hiring process.

<p>True (A)</p> Signup and view all the answers

Queen's employment contract allowed for termination without cause on two months' notice.

<p>False (B)</p> Signup and view all the answers

Negligent misrepresentation occurs when a statement is made carelessly.

<p>True (A)</p> Signup and view all the answers

Executive search firms have no legal implications in the recruitment process.

<p>False (B)</p> Signup and view all the answers

A restrictive covenant can impact an employer's decision in the hiring process.

<p>True (A)</p> Signup and view all the answers

All types of employees are treated the same under common law.

<p>False (B)</p> Signup and view all the answers

Background checks are unnecessary in the hiring process under common law.

<p>False (B)</p> Signup and view all the answers

Anticipatory breach occurs when one party violates the contract before the performance is due.

<p>True (A)</p> Signup and view all the answers

Innocent misrepresentation refers to a false statement made without knowledge of its falsehood.

<p>True (A)</p> Signup and view all the answers

Misrepresentation can only be classified as either negligent or fraudulent.

<p>False (B)</p> Signup and view all the answers

Minor misstatements that significantly misrepresent an applicant's qualifications usually justify dismissal without notice.

<p>False (B)</p> Signup and view all the answers

Intentionally misstating a previous salary can always lead to dismissal without notice.

<p>False (B)</p> Signup and view all the answers

The British Columbia Court of Appeal found that Islip's misstatement of salary led Coldmatic to hire him.

<p>False (B)</p> Signup and view all the answers

Misstatements about an applicant's qualifications are considered less critical than misstatements about salary.

<p>True (A)</p> Signup and view all the answers

The case of Earle v Grant Transport supports the dismissal of an applicant for misrepresenting their past salary.

<p>False (B)</p> Signup and view all the answers

Disciplinary actions may be justified against candidates for minor misrepresentations during hiring.

<p>True (A)</p> Signup and view all the answers

Deliberate misstatements will always result in automatic dismissal regardless of their impact.

<p>False (B)</p> Signup and view all the answers

Misstatements that do not induce an employer to hire an applicant usually lead to disciplinary action.

<p>False (B)</p> Signup and view all the answers

Employers can be held liable for misstatements made by recruitment firms during the hiring process.

<p>True (A)</p> Signup and view all the answers

An entire-agreement clause in an employment contract ensures that all prior oral statements are valid even after the contract is signed.

<p>False (B)</p> Signup and view all the answers

Candidates can successfully sue employers for breach of contract if promised pay increases do not materialize.

<p>True (A)</p> Signup and view all the answers

Employers are held liable for any reliance on an inaccurate statement made during the hiring process, regardless of the circumstances.

<p>False (B)</p> Signup and view all the answers

Misrepresentations that only cause inconvenience can lead to a negligent misrepresentation claim in employment.

<p>False (B)</p> Signup and view all the answers

Interviewers are encouraged to provide a realistic preview of the job to candidates to avoid misunderstandings.

<p>True (A)</p> Signup and view all the answers

If an interviewer cannot answer a candidate's question, they are not required to follow up after the interview.

<p>False (B)</p> Signup and view all the answers

An employer can easily void a job description for inaccuracies once a hiring contract has been signed.

<p>False (B)</p> Signup and view all the answers

The reference checker is allowed to share comments from one reference with other references.

<p>False (B)</p> Signup and view all the answers

Foreign references are considered less valuable than Canadian references according to employment guidelines.

<p>False (B)</p> Signup and view all the answers

The plaintiff in Phutela v University of Alberta claimed damages of $2 million for slanderous information.

<p>True (A)</p> Signup and view all the answers

The Alberta Court of Queen's Bench found malice in the comments made by the former employer in the Phutela case.

<p>False (B)</p> Signup and view all the answers

A reference checker should show interest in prohibited grounds of discrimination shared by references.

<p>False (B)</p> Signup and view all the answers

Comments made by a former employer in reference letters are considered voluntary and not obligated.

<p>False (B)</p> Signup and view all the answers

Employers often hesitate to give negative references due to the fear of lawsuits.

<p>True (A)</p> Signup and view all the answers

The defence of qualified privilege can apply to statements made without malice in the context of libel.

<p>True (A)</p> Signup and view all the answers

A dependent contractor has less autonomy than an employee.

<p>False (B)</p> Signup and view all the answers

Dependent contractors are not entitled to any legal protections like workers' compensation.

<p>False (B)</p> Signup and view all the answers

More than 50 percent of a dependent contractor's income must come from a single principal to qualify as dependent.

<p>True (A)</p> Signup and view all the answers

A worker's classification as an independent contractor is fully determined by the parties' intentions.

<p>False (B)</p> Signup and view all the answers

Independent contractors are considered entrepreneurs in business for themselves.

<p>True (A)</p> Signup and view all the answers

The relationship between a principal and independent contractor is treated the same as the employer-employee relationship in law.

<p>False (B)</p> Signup and view all the answers

Dependent contractors have the right to unionize and bargain collectively with their principal.

<p>True (A)</p> Signup and view all the answers

Dependent contractors do not have to provide reasonable notice for termination of their contract.

<p>False (B)</p> Signup and view all the answers

Flashcards

Misrepresentation

A false statement made by one party to another. It can be negligent (made carelessly), fraudulent (made knowingly), or innocent (false but made without intent to deceive).

Negligent Hiring

A legal claim arising from the failure to exercise reasonable care in the recruitment process, often involving background checks. An employer is liable for harm caused by an employee due to their negligence in hiring.

Negligent Misrepresentation

A type of misrepresentation where a party makes a false statement about a fact material to the agreement. In hiring, this can involve misleading candidates about the job, the company, or the compensation.

Respondeat Superior

A legal doctrine that applies when an employer is aware of a potential risk posed by a person they hire. The employer can be held liable for harm caused by this person if reasonable steps were not taken to mitigate the risk.

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Restrictive Covenant

A legal document that restricts a former employee's ability to work for competitors or to use confidential information. Used to protect the employer's business interests.

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Anticipatory Breach

An agreement that is breached before the performance begins. In hiring, it could occur when one party reneges on the agreement before the start date.

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Independent Contractor

A person hired to perform a specific task, typically on a project basis. They are not considered employees and do not receive benefits like employees.

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Employer-Employee Relationship

A legal relationship where one party (the employer) controls the work of another party (the employee). This relationship defines obligations and rights of both parties.

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Attestation Clause

A statement on a job application form that ensures the applicant declares the information provided is true, and they understand the consequences of providing false or incomplete information.

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Misrepresentation by an Employer

A statement made during the hiring process that is inaccurate and leads to a prospective employee suffering damages.

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Employer's Obligation

An employer's responsibility to ensure the accuracy of statements made during the recruitment process to avoid liability.

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Queen v Cognos Inc.

A legal case that highlights the potential liability for employers who do not ensure the accuracy of statements made during the hiring process.

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Consequences of False Statements

The consequences an employee faces for providing false or incomplete information on an application, including potential dismissal or disciplinary action.

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Job Requirements

The requirement for employers to explicitly state essential qualifications or skills needed for a specific job, ensuring transparency in the hiring process.

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Legal Position of Attestation Clause

An employer's legal position is strengthened by including an attestation clause on application forms, signifying that the applicant understands the consequences of dishonesty.

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Defamation

A legal wrong that occurs when someone makes false and damaging statements about another person, harming their reputation.

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Slander

A type of defamation that involves spoken words.

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Libel

A type of defamation that involves written words.

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Justification

A legal defense that argues that a statement made, even if damaging, was true and therefore not defamatory.

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No References Policy

A practice adopted by some employers to avoid liability for potentially defamatory references.

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Negligence

The failure to exercise reasonable care, resulting in harm or loss to another party.

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Negligent Hiring Claim

A legal claim arising from negligent hiring practices, whereby an employee without the required qualifications causes harm to a third party.

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Education and Professional Credentials Checks

A background check that verifies educational qualifications and professional or trade certifications.

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Non-Solicitation Clause

A clause in an employment agreement that prevents a former employee from soliciting clients or customers of their previous employer for a certain period after leaving.

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Non-Competition Clause

A clause in an employment agreement that prevents a former employee from working for a competitor for a certain period after leaving.

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Confidential Information Clause

A clause in an employment agreement that establishes trade secrets as the property of the employer.

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Injunction

A legal order issued by a court that prevents a person from taking specific actions, such as using confidential information or contacting clients of a former employer.

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Search and Seizure Order

A legal process that allows a court to authorize the search and seizure of specific items, such as confidential information, from an individual's possession.

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Trend Against Restrictive Covenants

A legal principle that discourages the enforcement of clauses that unreasonably restrict an employee's ability to earn a living after leaving their job.

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Protecting Proprietary Information

A specific reason for an employer to seek legal protection, such as preventing an employee from using confidential information to unfairly compete with their former employer.

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Conditional Offer of Employment

A formal offer of employment made to a candidate, subject to certain conditions that must be met before the offer becomes final.

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Job Reference Check

A type of background check where an employer contacts previous employers or references to gather information about a candidate's work history and character.

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Social Media Profiles

Online profiles that individuals create to share information about themselves and connect with others. Employers may use them to learn more about candidates.

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Red Flag

When an employer's background check of a candidate reveals information that might disqualify them from the position.

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Internet and Social Media Searches

A type of background check that involves searching for information about a candidate online.

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Principal-Independent Contractor Relationship

A legal relationship where a principal hires an individual to perform a specific job or task without an employment contract. They are not considered employees and are responsible for their own taxes, benefits, and work arrangements.

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Hiring Independent Contractors

The trend of replacing traditional employees with independent contractors to reduce costs, legal obligations, and administrative burden.

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Statutory Benefits

Benefits like vacation pay, overtime pay, parental leave and other protections that are provided to employees but not to independent contractors.

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Totality of the Relationship

A legal principle stating that a court will consider all aspects of a relationship when determining dependency, not just recent interactions.

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Economic Reliance

An extended period of working exclusively with a particular company, establishing a strong dependence on that relationship.

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Pay in Lieu of Notice

A period of time an employee is entitled to receive pay after their dismissal, typically calculated based on their length of service.

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Misrepresentation in Hiring

A false statement made by one party to another during the hiring process that can lead to legal issues. This could involve misleading information about the job, company, or compensation.

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Innocent Misrepresentation

A type of misrepresentation where a party makes a false statement about a fact material to the agreement but does so without intending to deceive or knowing it was untrue.

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Minor Misstatements

Minor misstatements that do not significantly impact the applicant's qualifications or character usually don't justify immediate dismissal.

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Misstatements Without Influence

Even deliberate misstatements that don't lead to the employer hiring the applicant may not justify dismissal.

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Unintentional Misstatements in work experience

Unintentional misstatements about work experience are unlikely to justify dismissal, especially if they have no significant impact on the employer's decision.

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Misstatements of Salary

Misstatements about an applicant's previous salary may not justify dismissal, even if intentional, if they don't influence the employer's hiring decision.

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Minor Misrepresentations and their impact

Misstatements about an applicant's qualifications or character may not justify dismissal without notice, but might justify disciplinary action.

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Salary vs. Qualifications

Statements about an applicant's past salary are typically less critical than statements about their job qualifications.

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Islip v Coldmatic Case

Cases like Islip v Coldmatic Refrigeration demonstrate that misstatements may not justify dismissal if they don't influence the employer's decision to hire.

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Earle v Grant Transport Case

In cases like Earle v Grant Transport, courts have determined that misstatements of salary alone rarely warrant dismissal without notice.

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Duty of Care in Hiring

A legal obligation for an employer to take reasonable care in hiring practices to prevent harm to applicants.

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Negligent Misrepresentation in Hiring

A false statement made by an employer that causes harm to a potential employee, often leading to legal claims.

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Misleading Job Applicants

When a company fails to provide accurate information about a job or the company during the hiring process, potentially misleading candidates.

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Employer Liability for Misrepresentation

The legal consequences an employer faces for making false or misleading statements to candidates during the hiring process.

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Accurate Job Description

Making sure all interviewers understand the job and its compensation package. It involves honestly presenting the job's realities.

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Employer Liability for Search Firm Misrepresentations

Employers are responsible for statements made by recruitment agencies on their behalf, even if those statements are exaggerated.

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Entire Agreement Clause

A clause in a contract that states all prior oral discussions are superseded by the written terms.

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Entire Agreement Clause

A statement in a contract that makes prior oral statements void.

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Limits to Employer Liability for Misstatements

Employers are not liable when employees unreasonably rely on inaccurate information. If a reasonable person could have detected the inaccuracy, the employee cannot claim misrepresentation.

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Employment Contract

A written agreement that outlines all terms and conditions of employment, including the scope of work, compensation, and duration of employment.

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Entire Agreement Clause

A statement in a contract that confirms the employer's prior statements are invalidated upon signing.

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Employment Contract

A formal agreement outlining the terms and conditions of employment, including salary, benefits, and duration.

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Qualified privilege

A statement made by a former employer about a candidate, which is protected from defamation lawsuits if made without malice and in good faith.

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Hesitant references

A common problem with reference checking where former employers are hesitant to criticize a candidate for fear of a lawsuit.

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Confidentiality of references

The reference checker should not share the comments of one reference with other references or disclose their identities.

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Control Test

A legal test used to determine whether someone is an employee or an independent contractor.

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Entrepreneurial Test

A legal test based on the individual's entrepreneurial capacity. If they are in business for themselves, they are more likely to be classified as a contractor.

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Economic Reality Test

A legal test that considers a worker's economic dependence on a particular organization. If they rely on that organization for a majority of their income, they may be considered a dependent contractor.

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Nature of the Relationship

A legal principle that determines the legal rights and responsibilities of a party based on their status, either as an employee or a contractor.

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Study Notes

Provincially Regulated Employers - Learning Outcomes

  • Understanding key common law issues related to hiring, including negligent misrepresentation
  • Understanding the effect of using executive search firms in the recruitment process
  • Explaining the legal implications of background checks, including internet and social media searches
  • Understanding differences in employee categories (full-time, part-time, and temporary)

Areas of Common Law Liability - Misrepresentation by Job Candidates

  • There is no legislation requiring job candidates to be completely honest during the application process.
  • Courts may allow dismissal if misrepresentations are severe.
  • Misstatements must be knowingly false, intended to deceive, and relied upon by the employer.
  • Material misrepresentations, especially those about honesty and essential job duties, are grounds for termination.
  • Minor misstatements not inducing hiring decisions usually do not justify dismissal.
  • Employers should not mislead job candidates about the true nature of the job or its expectations.

Negligent Misrepresentation in Hiring

  • Employers can be liable for inaccurate statements during the hiring process.
  • Damages are owed if the employee relies on the inaccurate statement.
  • The employer's belief in the accuracy of the statement is irrelevant.
  • Employers must ensure accuracy in recruitment processes.
  • Statements made about salaries are less serious than statements about qualifications.

Executive Search Firm Liability

  • Recruitment firms are legally responsible for their actions in the recruitment process.
  • Employers can be held liable if the firm acted negligently in their recruitment process.
  • The contract between the employer and the search firm should specify the requirements for the firm when they are undertaking the search.
  • The firm should follow a standard duty of care.
  • Misstatements from the search firm can result in liability for the employer.
  • Employers are expected to verify candidate information.

Misrepresentation by an Employer

  • Employers can be held liable if they make misrepresentations to a prospective employee.
  • If an employer gives inaccurate details about the job, and the applicant relies on it, the employer may be held liable for the damages.
  • The employer's belief in the accuracy of the statement is not relevant.
  • An employer's misrepresentation that does not induce the hiring of a candidate is not sufficient to cause liability for the employer.

Restrictive Covenants

  • Employment contracts may limit competition with the former employer or soliciting their clients or employees.
  • Restrictive covenants are enforceable only when reasonable.
  • Reasonableness depends on geographical scope, duration of the restriction and the types of work prohibited.
  • Courts do not like restrictive covenants preventing someone from earning a living in their own field.

Anticipatory Breach of Contract

  • An anticipatory breach occurs when one party rejects their obligations before the start date.
  • The employer may be held liable for damages for an anticipatory breach
  • An employer should not take action in an anticipatory breach until the date that the offer has been formally accepted.
  • Anticipatory breach is when the employer repudiates the employment contract.
  • If circumstances change, the employer is not necessarily liable.

Background Checking: Negligent Hiring

  • Extensive background checks are essential for candidate vetting.
  • Employers run the risk of causing reputational damage or harm to others as a result of negligent hiring practices.
  • An employer's duty to check references varies depending on the level of trust and vulnerability involved in the employment position.
  • The employer is required to consider the potential for reasonable damages.

Reference Checks

  • Employers are advised to get multiple references from various sources (supervisors, coworkers, teachers).
  • Conducting further research about candidates is also appropriate.
  • Employers must respect personal information protection acts when contacting references.
  • Before checking references, employers should obtain the applicant's written permission.

Internet and Social Media Searches

  • Social media and online searches are increasingly common in candidate vetting.
  • Potential privacy issues and grounds for discrimination must be considered.
  • Incorrect or misleading information can be a problem.
  • Employers should perform searches with caution.
  • Employers should ensure that they are not violating personal information protection acts.

Agency Employees

  • Agency employees are managed by a third-party employment agency.
  • Agency employees are not directly employed by the organization.
  • The agency is responsible for managing and dealing with the employment of the agency employees.
  • The agency is expected to meet employment standards for the agency employees.
  • Employers can be liable for wrongful dismissal if they mistreat agency employees.

Different Types of Employees

  • Permanent full-time, Permanent part-time, temporary, and casual employees are commonly used terms.
  • The legal protection afforded to employees can differ based on their employment type.
  • Employee status is determined by the level of control the employer has over the employee's work, including hours, tasks, and location.

Contractors vs Employees

  • The difference between employers vs employees and independent contractors and dependent contractors involves the level of control of the organization or business
  • Different criteria are used by legal organizations to decide the different types of roles for a worker.
  • Legal authorities are more lenient toward recognizing the relationship as independent and economically independent when they have a longer term contract relationship with the business.
  • A worker's economic dependence on one business is a strong indicator of them being an employee, rather than a contractor.

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