In Canada, non-unionized employees are typically provided with a written employment contract to be signed before commencing employment. This contract sets out the terms of the employment and is a binding agreement between the employer and employee. It is common for an employee to start work sometime after signing the employment contract. But what happens if an employer decides to retract a job offer after it has been accepted? The Ontario Superior Court of Justice case Kim v. BT Express Freight Systems addresses this exact scenario.

Background Facts of the Case

In this case, the Plaintiff sought employment with the Defendant and signed an employment contract to start work shortly thereafter. Less than a week before the Plaintiff’s first day, the Defendant suddenly rescinded the job offer without providing any reasoning.

The Plaintiff then sued the Defendant for wrongful dismissal, arguing that no notice or pay in lieu of notice had been provided for the rescinded job offer.

Judge’s Decision

The judge determined that an employment relationship had been created even though the Plaintiff had not yet performed any work. As a result, the Plaintiff was entitled to notice or pay in lieu of notice for the dismissal. Since the Defendant did not defend against the claim, the judge accepted the Plaintiff’s arguments for entitlement to common law reasonable notice as fact, without examining the enforceability of the employment contract.

Although the employment contract included a three-month probation period clause, the judge ruled that the probation period had not begun because the Plaintiff had not started working. Consequently, the judge awarded the Plaintiff three months of pay in lieu of notice for wrongful dismissal.

Key Takeaways for Employers

Employers should be highly cautious when rescinding an accepted offer of employment, as doing so can expose them to significant liability for damages in court. Once an employment contract is signed, it typically becomes an enforceable and binding agreement, even if the employee has not yet started working. Not providing reasons for retracting the job offer can create further risks for employers.

To mitigate potential liability, employers should:

• Ensure employment contracts are properly drafted to prevent termination clauses from being found unenforceable.
• Recognize that a probationary period does not begin until the employee starts performing work.
• Consult with an employment lawyer before rescinding a job offer or dismissing an employee who has not yet started work.

How an Employment Lawyer Can Assist

If you find yourself in a situation where a job offer has been rescinded, consulting with an employment lawyer can be invaluable. An employment lawyer can assist by:

• Reviewing Employment Contracts: Ensuring your employment contracts are clearly drafted and legally sound to avoid future disputes.
• Advising on Legal Rights and Obligations: Providing clarity on your rights and obligations under Ontario employment law.
• Negotiating Settlements: Helping negotiate fair settlements if a job offer has been rescinded, including severance pay and other entitlements.
• Representing in Legal Disputes: Representing you in court or before tribunals if wrongful dismissal claims arise from a rescinded job offer.
• Preventing Legal Issues: Offering proactive legal advice to prevent potential legal issues from arising when rescinding job offers or making other employment decisions.

Conclusion

Rescinding a job offer in Ontario can lead to significant legal and financial consequences for employers. As seen in the case of Kim v. BT Express Freight Systems, an accepted job offer creates an employment relationship that entitles the prospective employee to notice or pay in lieu of notice if the offer is withdrawn. Employers should carefully consider their actions and seek legal advice to manage the complexities of employment law and avoid wrongful dismissal claims.

For more information or legal assistance regarding employment contracts and job offers, contact Achkar Law. Our experienced team of employment lawyers can help you understand your rights and obligations in the workplace.

Contact Achkar Law

Understanding the complexities of employment law can be challenging, especially when it comes to rescinded job offers and employment contracts. If you’re facing such issues, it’s crucial to seek professional legal assistance to protect your rights and interests.

At Achkar Law, our experienced team of employment contract lawyers is here to help. We understand the intricacies of employment law in Ontario and are dedicated to providing you with the best possible legal guidance and representation.

Why Choose Achkar Law?

• Legal Guidance: Our lawyers have extensive experience in employment law and can offer clear, actionable advice tailored to your specific situation.
• Personalized Service: We take the time to understand your unique circumstances and provide tailored legal solutions.
• Proactive Approach: We help you address legal challenges before they become significant issues, ensuring your rights are protected from the outset.
• Strong Representation: Whether negotiating settlements or representing you in court, our lawyers are committed to achieving the best outcomes for our clients.

How We Can Help

• Reviewing and Drafting Employment Contracts: Ensure your employment contracts are legally sound and protect your interests.
• Advising on Legal Rights and Obligations: Get clarity on your rights and obligations under Ontario employment law.
• Negotiating Settlements: If your job offer has been rescinded, we can help negotiate fair settlements, including severance pay and other entitlements.
• Representing in Legal Disputes: We represent you in court or before tribunals in cases of wrongful dismissal or other employment disputes.

Contact Achkar Law Today

Don’t handle the complexities of employment law alone. If you have questions about employment contracts, job offers, or any related issues, contact Achkar Law today. Our team of dedicated employment contract lawyers is ready to assist you.

Call us at 1 (800) 771-7882 or email us at [email protected] to schedule a consultation. Let us help you understand your rights and provide the legal support you need to achieve a favourable outcome.