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Lecture 7

LAW 529 Lecture Notes - Lecture 7: Cognos, The Employer

Law and Business
Course Code
LAW 529
Pnina Alon- Shenker

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Chapter 6 The Job Recruitment and Hiring Process
Common law is concerned with honesty in hiring.
o Honesty of the employer and of the job applicant
The statutory and regulatory regime is concerned with discrimination in hiring.
o Refusing to hire based on prescribed personal characteristics (colour, gender, religion,
Common Law Issues
Three Torts
Deceit or fraudulent misrepresentation by prospective employer;
o An employer tells a job applicant something that the employer knows is not true;
o The job applicant relies on the untrue statement and suffers a loss.
The employer can be sued for deceit (tort) or fraudulent misrepresentation (contract).
Negligent Misrepresentation by Prospective Employer
o The employer misleads the job applicant or tells the applicant something that is not
true. It does not require intention;
o The originating precedent is the UK decision, Hedley Byrne & Co. Ltd. v. Heller &
Partners Ltd., later applied in Canada to the hiring process in Queen v. Cognos (Ref.
Box 6.2);
A key feature is the duty of care owed by prospective employers to job applicants during the
hiring process;
To succeed, the plaintiff must demonstrate:
o The precise nature and particulars of the alleged misrepresentation;
o That the misrepresentation was false;
o That the misrepresentation was made with the expectation that it would be relied
o That the person did rely upon the misrepresentation; and
o That the person suffered a consequential loss or damage.
Misrepresentation by Job Applicant
o The employee lied about his or her credentials during the hiring process.
What are the consequences?
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