Businesses recruiting during the downturn need to careful to avoid exposing themselves to legal claims by employees of misrepresentation by omission.
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.”