Businesses recruiting during the downturn need to be careful to
avoid exposing themselves to legal claims by employees of mis
representation by omission.
According to Harmers Workplace Lawyers partner Shana Schreier-
Joffe, employers that withhold important information regarding the fu
ture direction of the company – such as plans for restructuring – may
open themselves up to claims for lost remuneration, commissions or
other promised employee benefits.
“Most employees have been so used to ‘talking up’ their business
to potential employees that they do not realise how important it has
become to be candid in the midst of the current economic climate,”
she said. “My advice to employers who are currently hiring is that they
should err on the side of disclosure with candidates.”