Reducing the risks of inducement

As the economy recovers, employers will be looking to land top talent — but if the worker is already working somewhere else, there are legal pitfalls to avoid
By Anneli LeGault
|Canadian HR Reporter|Last Updated: 02/03/2010

As Canadian companies emerge from hiring freezes and staff reductions, the hunt will be on for top talent. When actively recruiting, employers need to be aware of certain liability issues that can arise if an employment relationship does not work out.

First, when recruiting employees away from their current employment, employers should bear in mind the risks of causing them to breach their terms of employment. Employees should provide any notice of resignation to which they are contractually bound. Employers shouldn’t let them bring any property or information belonging to their former employer to the new job.

A prudent step would be to include a clause in an offer letter or employment agreement stating the employer does not want the worker to bring any materials belonging to a prior employer. In addition, to flush out any issues that may arise from pre-existing non-solicitation or non-competition agreements, it’s worth considering a statement that confirms a new employee is not bound by any prior restrictions that will limit his ability to accept employment or fulfill his new job responsibilities.