Legal Risk and Opportunity

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Words: 1366

Pages: 6

Category: Business and Industry

Date Submitted: 05/17/2010 10:37 AM

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Legal Encounter 1:

Mr. Pat Grey was hired by Newcorp as a real estate manager in the state of Vermont. Mr. Grey packed up his wife, children, and all their personal belongs to begin a new career in Vermont but at the end of thirty days he was informed by his manager that he was not working out as a real estate seller due to the current market. He subsequently was informed that he would receive a severance package for his efforts while employed by Newcorp. Although surprised at the news, Pat does not believe that he is being terminated for the reason that he was given. Mr. Grey believes that he is being terminated for a comment that he expressed at a school board meeting concerning fund allocation for sports events within the community. His coworkers and supervisors began acting differently towards him soon after he made his statements. To his knowledge, Pat was never given any form of counseling for inadequate job performance nor did his manager act dissatisfied with his work ethics. Following company guidelines, he researched his employee handbook and not to his surprise, his abrupt notification for termination of employment did not fall within the stipulated guidelines for termination.

In the State of Vermont, as stipulated in the laws of “at will employment,” employers can hire and terminate employees for inadequate performance without given them a reason for their termination unless there are extenuating circumstances. At will employment, according to the law in Vermont, is purely circumstantial in nature and is subject to interpretation by whoever is presiding over any case in court. Presumably, as understood by the way the law is written, a breach of verbal contract has been made between Pat Grey and Newcorp. Therefore, a violation has been noted and appropriate legal action is assumable and can take place. The Employee Handbook that Mr. Grey received at the time of his employment indicates all the standard guidelines for new employees...