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I signed an offer of employment in Toronto as well as the employer . I was to start in a week's time. I found out today that the employer rescinded the offer for no reason. The job was via an agency and they were informed yesterday after business hours

At the time of the employer's interest in me I was sitting on a offer which he was told about from the outset. I turned the other job offer down in order to accept this one and now I have no job. He wrote in an email to the agent that an hour after he signed my offer and I accepted he received another resume and says the other candidate was a better fit. He did not indicate whether that employee was hired.

My other question is also whether the agency shares any liability. The agency asked around and found that this is a wrongful dismissal.
What is my recourse? I made arrangements since my furniture is in Ottawa and I am looking for another place but in Toronto.

This is not necessarily an employment law matter - but rather, a potential breach of contract matter. A lawyer would need to review the employment contract and get a better sense of the parties' expectations in order to assess whether you have any actual damages here and whether the agency would have any liability. In any event, now that you don't have this job you have a duty to mitigate (i.e. search for another job) to try to mitigate your losses of losing this job. If you would like to consult with one of our lawyers further on this matter, please contact our office to schedule a meeting.
The Lawyers at Samfiru Tumarkin LLP
Direct Tel (Toll Free): 1-855-821-5900     Email: webquestions@stlawyers.ca     Web: www.stlawyers.ca
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