Care is required when recruiting a potential employee, but not all active recruitment activities qualify as inducement. More than giving the employee the impression there is room to grow or job security is required. Actual evidence of promises made by the company and the employee’s reliance upon those promises is necessary to sustain a determination of inducement. Nevertheless, employers can avoid claims of inducement by using written employment agreements that contain “entire agreement” clauses and confirm that the employee has not been induced by any promises.
When a company promotes an employee, the employer should provide the employee with a new contract to sign prior to allowing the employee to commence his or her duties. In that way, the company is providing the employee with “fresh consideration” to make the contract enforceable. Consideration is the legal word for the exchange of something of value to make contracts enforceable and in a promotion it takes the form of the increased salary that comes with the new job. If the company allows the employee to be promoted and then has the employee sign an employment contract after the promotion has already taken place, there is a chance the employee can argue the terms of the contract that were not discussed pre–promotion should not be enforced for lack of fresh consideration rendering the terms of the contract unenforceable.
Last month I promised a description of a metric which starts to take organizations deeper into the insight they need to be successful and to show real results. True to my promise here it is: