Legal Risk and Opportunity in Employment

The purpose of this paper is to identify and discuss three legal encounters involving NewCorp, a fictitious company located in Vermont. Discussed below are different liabilities and rights and the legal principles that support those rights and liabilities.

Legal Encounter 1: Pat Grey, manager of real property

Like Pat, many employees in the United States feel that good job performance should merit benefits such as job security. Pat’s belief was reinforced by Newcorp’s Notice of Unsatisfactory Performance/Corrective Action Plan. This plan indicates that Newcorp’s employees will be notified if their performance falls below expectation and the employee will be placed on a Corrective action Plan. If the employee’s performance does not improve to a satisfactory level within a specified time frame, termination will follow. Pat was never given notice of poor performance by Newcorp prior to his discharge. Nor was Pat given the grace period to improve as indicated by the Corrective Action Plan.

The state of Vermont recognizes the employment-at-will public-policy exception and the implied-contract exception. The implied contract exception, as developed in common law, has been violated by Newcorp. According to the implied-contract exception, implied contract can be expressed orally, in the form of written handbooks, policies or other written assurances. Newcorp’s unsatisfactory performance/corrective action plan creates an implied contract and Newcorp must follow certain disciplinary actions before termination can be ensued. Pat’s hardship, including the relocation of his family, may have been prevented if the implied contract did not exist. Pat was under the impression the at-will doctrine was limited and accepted the position based on the written assurances from Newcorp.

Legal Encounter 2: Sam, supervisor of electrical of manufacturing

NewCorp is liable for sexual harassment due to the supervisor's harassing conduct. Sexual harassment is a form of sex discrimination...