Inducement: When a New Offer Comes With Hidden Risk

Short version: If you were lured from a stable job and then dismissed, Ontario courts may award you more common-law notice (severance). That “lure” is called inducement and it can meaningfully change the outcome of a case.

What is “inducement”?

Inducement is more than ordinary recruiting. It’s when an employer goes beyond normal courtship—active pursuit, assurances of long-term security, or promises that entice you to leave a secure position. When proven, courts may extend the notice period owed on termination.

Why inducement matters to your severance

Ontario uses the Bardal framework to set common-law notice (factors like the nature of the job, length of service, age, and availability of similar work). Inducement isn’t one of the original factors, but courts treat it as an aggravating circumstance that can increase notice. Also, judges repeatedly stress that setting notice is “an art, not a science.”

What courts look at

• Did the employer initiate contact and keep pursuing you?

• Were there assurances about stability, growth, or duration?

• Did you rely on those assurances to leave secure work?

• Was the recruiting beyond ordinary back-and-forth?

Courts often give inducement more weight when termination follows soon after hiring—because the employee didn’t reap the benefit of leaving a secure job.

Example of notice not being formulaic: In Love v. Acuity, a senior executive with just ~2.5 years’ service received nine months’ notice on appeal—illustrating that short service doesn’t automatically mean short notice.

Practical steps

If you’re an employee:

• Keep the recruiting trail (emails, texts, LinkedIn messages).

• Record assurances about job security, role, or compensation.

• Have offers reviewed before you resign.

If you’re an employer:

• Avoid over-promising during recruitment; stick to verifiable facts.

• Use clear contracts (probation/termination clauses and a statement that no assurances were made) — helpful, though not a cure-all if real inducement occurred.

Vanguard Law take: Inducement can significantly shift severance outcomes. If you think you were recruited away and then let go—or you’re hiring and want to reduce risk—talk to us early.

Legal note: This post is general information for Ontario and not legal advice.