Misrepresentation During the Hiring Process

Pair of glasses on laptop

Employer misrepresentations, such as overstating the benefits program, in an attempt to induce a candidate to take a job can have negative legal consequences.

Negligent Misrepresentations by the Employer

Occasionally, employers might make representations about a job or benefits at the hiring stage that later turn out not to be true. Usually these will not be outright lies, but reflect assumptions, or a lack of accurate information, on the part of the hiring team.

Conversely, the candidate might ask questions that the hiring team is not fully qualified to answer. This was the situation in the British Columbia case, Feldstein v. 364 Northern Development Corporation.

In the Feldstein case, the company made a representations about their disability benefits plan to a sought after candidate. The candidate in question had cystic fibrosis, and anticipated the need for long term disability benefits at some point in the future. He inquired in detail about the company’s plan because this was a very important aspect of his employment compensation, given his condition.

The employer misrepresented the plan, and the employee was later unable to get the LTD benefits he had been assured existed. The company was found liable for the tort of negligent misrepresentation.

Negligent misrepresentation will be made out where:

1. A duty of care is established between the parties:

Employers do owe a duty of care to employees so this is easily established.

2. The representation or statement in question was untrue, inaccurate, or misleading:

The statement with respect to the benefits was inaccurate.

3. The employer acted negligently in making the representation:

The employer should not have answered a detailed question about benefits, but deferred to the benefits provider for clarity.

4. The employee reasonably relied on the negligent misrepresentation:

The candidate in this case took the job only after assurances were provided with respect to the benefits plan. The court concluded that the reliance on the information provided was reasonable.

5. The reliance resulted in damages to the employee:

The employee was unable to get the LTD benefits that he anticipated. The court concluded that he would not have accepted the job but for the inaccurate information provided.

The trial judge awarded Feldstein C$83,336.80 as compensation for lost LTD benefits and $10,000 for aggravated damages.

The British Columbia Court of Appeal upheld the damages award for loss of benefits, but overturned the $10,000 aggravated damages award.

Tips for the Hiring Process

The takeaway from this case is to be careful what you say to candidates during the hiring process. When in doubt, information should be verified before is it shared, and in some cases the hiring team may need to outsource specific questions to ensure that the information provided is accurate.

 

Share the Post:

Related Posts

Canadian flag displayed in front of a government building, representing proposed federal labour law reforms under Bill C-39 and changes to the Canada Labour Code.

Federal Bill C-39: Major Changes Proposed for Federal Labour Relations 

Federal Bill C-39 proposes major changes to the Canada Labour Code that could reshape labour relations for federally regulated employers and unions. From expanded government intervention during strikes and lockouts to new collective bargaining rules and mediation processes, these reforms may significantly impact workplace disputes, collective agreements, and the balance between protecting workers’ rights and the national economy.

Read More »
Person working remotely on a laptop beside a swimming pool, illustrating remote worker management, employee accountability, and flexible work arrangements.

Remote Worker Management: Accountability without Constant Check-Ins 

Managing a remote team doesn’t require constant check-ins. Effective remote worker management comes from clear expectations, transparent systems, and trust. Learn how to create accountability, improve collaboration, and measure results without micromanaging employees. Discover practical strategies to build a productive remote workforce that stays aligned, engaged, and focused on outcomes rather than online presence.

Read More »
Mountain village with wooden buildings overlooking a valley, representing workplace accommodations that can evolve while supporting long-term stability and growth.

Can An Employer Change An Accommodation? 

Can an employer change a workplace accommodation once it has been in place for years? A recent Ontario court decision confirms that accommodations are not necessarily permanent. Employers have flexibility to modify accommodations when employees remain reasonably accommodated and free from discrimination. Learn what this ruling means for disability accommodation, workplace management, employee benefits, and legal compliance.

Read More »

Contact Us

Thank You For Your Interest. Kindly Complete The Form Below. Our Client Services team will be in touch with further information about our fees and intake process.
[grow-contact-form]