Although the interview process is generally quite stressful for employees, it’s no walk in the park for employers either. A lot of time, energy and resources go into courting a candidate. So, it’s fair to say that when a winner finally is selected and they’ve signed their shiny new employment contract, it hurts when they’re a no-show on their first day.
It has become harder and harder to have a binding termination provision in an employment agreement, but it can still be done. Several cases provide further details.
The decisions in Ensign and Karmel demonstrate the risk of liability for failing to be honest and forthright in the manner of termination of an employee’s employment. Employers would be well-advised to be conservative in assessing whether they have cause, assessing reasonable notice periods, carrying out the termination and avoiding bad faith and/or misrepresentation.