It sometimes happens that employees are recruited to join an employer based on false promises. For example, the employer might tell the employee that the job that is open is different than the actual opportunity, or that the pay or benefits are more generous than is actually the case. Then, the false representation is discovered by the employee.
If the promise by the employer becomes a contractual obligation, because it is incorporated into the employment contract, the employee can sue for breach of contract. If successful, the employee would in these circumstances normally be compensated by an award of damages sufficient to put the employee in the same position he or she would have been in if the promise had been kept. This sort of action may not be possible during continued employment.
In some cases, the false promises might not have contractual effect. This might occur, for example, where the employee was required to sign a written contract that did not contain the promise, or contained a termination clause to the employer’s benefit. In these circumstances, the employee might wish to pursue a claim based on “misrepresentation.” The theory of this claim is that the employee relied on the truth of the statement about what the future would hold, to his or her detriment. The employee might not have taken the job at all, but stayed in an existing job, or not moved to take the new job. The employee in these circumstances would normally be awarded damages to place them in the position they would have been if the false statement had not been made. Damages with this approach could quite possibly be more than would be available in a contract claim.