Could This Happen to You?
Imagine you're an employer excited to sign a contract with a new employee. After a successful interview and initial compatibility check, you feel confident enough to finalize the employment agreement. However, afterward, as you start to dig deeper into their background, you uncover problematic social media posts from a decade ago. The decision to cancel the contract following this discovery leads to a lawsuit requiring you to pay 400,000 shekels, even though the employee hasn't worked a single day.
What Do Courts and the Law Actually Consider?
In Israel, the law doesn't restrict employers from conducting background checks on potential employees, but it's advisable to do so before signing a contract. Employers should be aware of any information that could impact the hiring decision in advance. In the scenario described, the agreement was already in effect, and the unilateral cancellation based on information revealed later was not viewed favorably by the court. The law recognizes an employee's right to protection from a contract cancellation made in bad faith. Additionally, it's crucial to understand the difference between information relevant to the job and what isn't. Social media posts from a decade ago might not be relevant if they don't reflect the employee's current personality or skills.
When Is This Relevant — A Checklist
- ✓Did you check the candidate's professional background before signing?
- ✓Is social media information considered a relevant factor?
- ✓Do you have a clear policy for background checks?
- ✓Did you consult with an attorney before signing the contract?
The Specific Law That Applies
Israel's Contracts Law mandates that parties act in good faith both in negotiations and in contract execution. If one party is found to have acted in bad faith, it can lead to a breach of contract and compensation claims. In the case of canceling a contract post-signing, the employer may be deemed to have breached the duty of good faith if the cancellation was based on information that could have been checked beforehand.
Questions Everyone Asks — But No One Asks Their Lawyer
Real Situations — Which Side Are You On?
- A recruitment manager who signed an agreement with a candidate and later discovered they had shared confidential information with a competitor in the past. Verdict: breach of contract could lead to a lawsuit.
- An employer who canceled a contract after receiving information about past racist posts. Verdict: may not be deemed relevant if the information doesn't affect the current role.
- A company that hired an employee based on a falsified resume. Verdict: right to cancel the contract without compensation.
What to Do Right Now
Check all available information about the candidate before signing the contract. Ensure you have the full picture before committing. If you're feeling stressed about handling the situation, know that quick action can save you from future frustration and heavy expenses. Seek legal advice to ensure you're protected.