Misleading and deceptive conduct in recruitment - points of law

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frederic

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28 July 2019
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In cases where it has been shown that loss has occurred due to misleading and deceptive conduct in recruitement [henceforth MDC], damages are awarded to restore as best as possible the state of affairs had one not been recruited, and this usually boils down to a difference in income between the two paths taken.

Q1: For sake of argument, let us say that other infringements occured during the employment relationship. These could be award breaches, GP contraventions etc.

If an over-arching MDC claim is brought I would assume that any settlements that were negotiated *during* employment for these miscellaneous breaches would be deducted from the overall damages on offer, as these infringements+settlements would be deemed not to have taken place if one had not been recruited. Is this the correct line of thinking? If so it feels like sins are going (partially) unpunished in this scenario, one way or the other.

What if the miscellaneous claims were made as *part of* an MDC claim, say to highlight a culture of poor management? Is there any scope for these unsettled indiscretions to be converted to exemplary damages that are excluded from compensatory income loss damages?

Q2: If it can be shown that the MDC was done, in part, to cause intentional harm to the original employer, and causation with resulting loss can be shown by said employer, can the original employer become a party to the MDC claim?

Q3: Notwithstanding unreasonable inaction to mitigate damages on the behalf of the claimant, what hurry is there to file an MDC claim knowing that past damages are easier to prove than speculative future damages? For example, what if a claimant suspects that their original employment position is likely to be made redundant sometime in the reasonably near future. Waiting for that scenario to play out before making a claim may well prove judicious. Furthermore, any time elapsed in making an MDC heaps more potential damages on the defendant it sould seem.
 

frederic

Active Member
28 July 2019
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Just to add to Q1, we have regarding mitigation:

The courts have accepted the following principles, as set out in H McGregor, McGregor on Damages, 16th edn, Sweet & Maxwell Ltd, UK, 1997 at [283]–[288], as an accurate statement of the law concerning mitigation.

1. The law disallows recovery of damages in respect of any loss that could have been avoided but which the plaintiff has failed to avoid through unreasonable action or inaction.
2. The plaintiff may recover loss or expense incurred in a reasonable attempt to mitigate.
3. The plaintiff may not recover loss in fact avoided, even though damages for that loss would have been recoverable because the efforts that went to mitigation went beyond what was required of the plaintiff under the first principle.
 

Rod

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Seem like a homework question to me.
 

frederic

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28 July 2019
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Seem like a homework question to me.

nope. real situation. but if you want to point me towards some reading that might answer the questions, I would only be too happy to try my hand. I haven't found any relevant case law that answers this.
 

Rod

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Not enough detail to comment. It is hard to know how much is Cth law (ie ACL), versus contract law, versus employment law. Someone needs to analyse the various and interrelated facts to work out possible causes of actions and then their remedies.

Q1: Depends on terms of settlement, and what was unknown at the time of settlement.
Q2: Possibly.
Q3: Nothing.
 
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frederic

Active Member
28 July 2019
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thanks rob. yes it is a real pickle. sounds like my neighbour could be better not knowing anything and playing it as it lies.
 

Jenny453

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8 December 2020
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Sham contracting under general protections could possibly cover everything you are talking about?
It makes no business sense to hire someone and not want the employment relationship to be fruitful and beneficial for both/all parties, it just wouldn't be financially smart in general, I wouldn't think.

With that in mind it would beg the question to the employer/s to make sense or justify there actions inline with the business they are running I would think, it's also begs a further question of if the employee isn't getting what was offered how are parties involved in funding the employment justifying there actions financially.

There might be a bigger picture the employee is not afforded to understand?