Legal Question in Civil Litigation in Canada

Legality of the conditions outlined in a letter of employment.

Are the conditions outlined in a letter of employment considered to be a binding, legal agreement between an employer and employee just by virtue of the employee signing his/her agreement to the terms? I am speaking specifically of where the letter outlines the employee's agreement to repay relocation expenses in the event they quit before a certain time period has passed. Reason for leaving is that the company did not honor something that was said during the interview, but was not on the letter of hire. The moment the employee learned that what was said in the interview was not going to happen, he expressed extreme displeasure and explained if he had known these were the conditions of work, he would never have re-located in the first place. (by that time, relocation expenses had already been incurred). Employee stayed on and gave company more than 3 months to resolve, then quit. The company demands the relocation money to be paid back and is threatening litigation.


Asked on 11/05/07, 2:34 am

1 Answer from Attorneys
Meldon Ellis Ellis Business Lawyers

Re: Legality of the conditions outlined in a letter of employment.

Your question raises a number of issues that require advice from an employment lawyer practicing in the province where you are located. I am a BC lawyer and I can refer you to an employment lawyer in B.C. if you are located here.

Having said that, a letter of employment could be considered to be binding agreement, if all the elements of a binding contract are met.

If it is a binding contract, then its terms will be binding on both parties - the employee and the company.

The next question is: whether the oral representation by the company to the employee during the interview is part of the contract?

The Parole Evidence rule provides that evidence of an oral representation that contradicts a written agreement will not be accepted by the courts, subject to numerous exceptions to this rule.

If the oral representation is accepted as part of the agreement, then it appears that the company has breached the agreement and the employee may have claims against the company that could be set off against the company's claims against the employee.

Again, all my comments are very general.

I recommend that you get specific legal advice from an employment lawyer in your province.

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Answered on 11/05/07, 1:02 pm


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