Induced into employment by false promises

We recently represented a client bringing a fraudulent misrepresentation claim in relation to his employment contract.

Background

Our client, Mr Finance, a skilled professional in the finance industry, accepted an employment offer from his future employer – let’s call them XYZ to save their blushes.

The decision to take the role was heavily influenced by representations made by XYZ regarding their financial stability, growth prospects and, most importantly, the promise of shares in the company with a value of £1.1m. Upon joining the Company, Mr Finance discovered that the shares in the Company were in fact worth much less, only £400k.

Mr Finance had been induced into the contract on the strength of false statements and representations, and what is more he believed the Company knew they were not true.

Mr Finance had turned down another offer of employment for a greater salary on reliance of the value of the shares.

Challenges Faced

The case presented several challenges, including:

• Proving Fraudulent Inducement: Establishing that the Employer intentionally made false representations to induce Mr Finance into accepting the employment offer and entering in to the contract.
• Demonstrating Reliance: Illustrating that Mr Finance relied on the misrepresented information in deciding to join the Employer.
• Quantifying Damages: Accurately calculating the financial and professional lossessuffered by Mr Finance as a direct consequence of the fraudulent inducement.

Gannons successfully represented our client, and as is the case with most disputes thecase ultimately settled out of court. The Company acknowledged the misrepresentations made during the recruitment process and agreed to a settlement that included compensation for Mr Finance’s financial losses and professional setbacks.

This case highlights Gannons’ expertise in navigating complex employment law matters and achieving favourable outcomes for clients. Our client’s success in the fraudulent misrepresentation claim underscores the importance of transparency in employment contracts and the legal avenues available to employees who are induced into contracts through negligent or fraudulent representations