Legal Risk and Opportunity in Employment

Legal Risk and Opportunity in Employment 2

Abstract

The employment relationship is the relationship of a person called an “employee” (frequently referred to as “a worker”) and an “employer” for whom the ”employee” performs work under certain conditions in return for remuneration. It is through the employment relationship, however defined, that reciprocal rights and obligations are created between the employee and the employer. The profound changes occurring in the world of work, and particularly in the labor market, have given rise to new forms of relationship which do not always fit within the parameters of the employment relationship (2006). New Corp is a company that is involved with legal encounters with three employees that face liabilities and risk.

Legal Risk and Opportunity in Employment 3

Encounter 1

New Corp has hired Pat as a manager of real property in Vermont and he is responsible for activities related to maintaining leased office space. Pat has relocated his family and sold and bought a home and his wife has quit her job to seek employment in Vermont. Upon employment at New Corp, Pat acknowledged and signed an understanding that the company observed employment at will with respect to discharge but believed the provision limited New Corp’s freedom to fire him at will. Pat worked for three months and his boss explained that things were not working out, and that Pat would be discharged with 30 days’ severance pay. Pat was surprised because his employer gave no previous indication of any problem. New Corps personnel manual which was provided to Pat outlined the process for dealing with unsatisfactory employees and the manual states that if an employee’s job performance is unsatisfactory then the employee will be notified and placed on a corrective action plan. If the employee’s performance does not improve to a satisfactory level in the specified period of time, termination will follow. New Corp did not follow the guidelines outlined in the...